Sign up voluntarily for Making Tax Digital for Income Tax

What Making Tax Digital for Income Tax is

Making Tax Digital for Income Tax is a new way of reporting income and expenses if you’re a sole trader or landlord. You’ll need to:

• use software that works with Making Tax Digital for Income Tax
• keep digital records of your business income and expenses
• send us quarterly updates
• submit a tax return and pay tax due by 31 January the following year

Who should sign up and when

Making Tax Digital for Income Tax is currently voluntary. You may be able to sign up to help us test and develop the service. From 6 April 2026, it will become mandatory in phases based on your total annual income from self-employment or property.

You should should:

1. findCheck out if andyou need to sign up.

2. Check when you need to sign up.

If you’ll need to sign up in future, you can either:

• use this service voluntarily now — for all your self-employment and property income sources
• continue sending a Self Assessment tax return as normal

If you use an agent, they can sign you up instead.

If you’re an agent, there’s a different way to sign up your client for Making Tax Digital for Income Tax.

Who can sign up voluntarily

We’ll ask you some questions when you sign up. This will confirm if you’re able to sign up voluntarily.  

You can sign up voluntarily if (all of the following):

• your personal details are up to date with HMRC
• you’re a UK resident
• you have a National Insurance number
• you have submitted at least one Self Assessment tax return
• you’re up to date with your tax records — for example, you have no outstanding tax liabilities
• you use an accounting period that runs from 6 April to 5 April

You can also use an accounting period that runs from 1 April to 31 March, if the software you choose supports this. To use this accounting period you must:

• select calendar update periods in the software before the first update is made
• make an adjustment at the end of your first tax year — so that your income and expenses from 1 April to 5 April are included in your tax return

If you sign up, during testing you will not be able to:

• claim carry back of losses
• change your accounting period
• change your accounting method

Who cannot sign up voluntarily

You cannot sign up voluntarily if you:

• have a High Income Child Benefit Charge
• have a payment plan with HMRC
• are a partner in a partnership
• claim Married Couple’s Allowance
• claim Blind Person’s Allowance
• are currently, or are going to be, bankrupt or insolvent
• are an MP, minister of religion or Lloyds underwriter
• have income from being a foster carer or being in a shared lives scheme
• have income from a trust
• have income from a jointly owned property
• have income from a furnished holiday let
• are subject to a compliance enquiry
• use ‘averaging’ or other arrangements because your profits vary between years — for example, because you’re a farmer, writer or artist
• are signing up on behalf of someone else (unless you’re an agent) — this includes (but is not limited to) if you’re:
  • an insolvency practitioner
  • a nominee
  • a solicitor

What you’ll need

You’ll need:

• your National Insurance number
• your business start date or the date you started receiving property income
• your accounting method such as cash basis accounting or traditional accounting
• the tax year you would like to start using Making Tax Digital for Income Tax

If you’re a sole trader, you’ll also need:

• your business name — this is the name you use on your invoices
• your business address
• the nature of your business (your trade)

If you have multiple income sources, you’ll need to sign up each one for Making Tax Digital for Income Tax.

How penalties will be charged

HMRC’s new penalties will apply to you if you miss deadlines for:

• submitting your tax return
• paying your bill

We’ll write to you to confirm when you’ve become liable for these penalties.

How to sign up

You’ll need the Government Gateway user ID and password you got when you signed up for Self Assessment.

Sign up now

After you’ve signed up

Find out more about using Making Tax Digital for Income Tax.

You still need to send a Self Assessment tax return for the tax year before you started using Making Tax Digital for Income Tax.

Get help

Help and support for Making Tax Digital.

Contact your software supplier if you need help creating business records or sending updates.

If you have another query about Making Tax Digital for Income Tax, contact HMRC.