Making Tax Digital for freelancers

How can I get set up for MTD ITSA?

If you are within the criteria, you will need to register for MTD ITSA - HMRC will not put you on the programme automatically, so you have an obligation to start thinking about this now.

Because it is based on your 2024-2025 turnover, you can figure this out now.

1. Check you meet the criteria

• If you are a sole trader and/or landlord with gross income over the relevant threshold (>£50k during April 2024-2025, >£30k during 2025-2026) - use the tool to check here.
• You will need a Government Gateway user ID and password - if you do not already have one, you can create it here.

2. Get MTD-compatible software

You most likely need a digital solution to keep your records and submit your accounts.

Pick a provider from HMRC's approved list, set it up so it is ready to keep digital records and send updates, and start keeping your records now so you are used to the process.

3. Sign in to your Government Gateway

Go to HMRC's Sign up for Making Tax Digital for Income Tax service and provide details about yourself, your business, and your property income if relevant.

4. Authorise your software

Your chosen accounting software will guide you to connect it to HMRC. This creates a secure connection between HMRC and your app.

5. Start sending updates

From your MTD start date, you will submit your first quarterly update via your software. You will get confirmation from HMRC each time you submit.

Registering before you need to

Even if you do not need to start yet, you can register early and get your processes in order now.

You don't need to wait until you're registered to set up your accounting tools or keep good digital records.

You are able to register before you're required to - find out more at HMRC.