What Making Tax Digital for Income Tax isis 

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

• useto use software that works with Making Tax Digital for Income Tax
 to: 
• keepcreate, store and correct digital records of your client’s business income and expenses  
• send usyour quarterly updates to HMRC  
• submit ayour tax return and your client must pay the tax due by 31 January the following year

Who should sign up and when when  

Making Tax Digital for Income Tax is currently voluntary. You may be able to sign up your client to help us test and develop the service. If your client wants to sign up at this stage, they can choose whether they want you to sign up them up:

• for testing
• early, so you and your client are prepared to use the service

HMRC will check that your client is eligible to sign up based on the details that you provide.

From 6 April 2026, itsome of your clients will becomeneed mandatoryto inuse phasesMaking basedTax onDigital for Income Tax. Whether your client’sclient needs to sign up depends on their total annual income from self-employment or property.

YouUse shouldour tool to find out if and when your client needs to sign up.

If you know when your client needs to sign up, you can read use Making Tax Digital for Income Tax to find out more information about:

• what to expect after you sign up
• the different steps you will need to take during the tax year
• help and support

If your client chooses to sign up innow

You future,or youyour client will still need to send a Self Assessment tax return for the 2024 to 2025 tax year.

If your client will need to sign up in future 

You can either:either: 

• usesign thisup serviceto voluntarilytest nowthe —service now, for all your client’s self-employment and property income sources
• continuesources — sendingonce asigned Selfup Assessmentyou taxwill returnnot asneed normal 

Ifto you’resign notup anyour agent,client there’sagain

• continue sending a differentSelf wayAssessment to signtax upreturn as annormal individualand forsign Makingup Taxat Digitala forlater Income Tax. 
  date

Who can sign up voluntarily

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

You can sign up your client voluntarily if all of the following apply: 

• their personal details are up to date with HMRC 
• they’re a UK resident 
• they have a National Insurance number
• they have submitted at least one Self Assessment tax return, or you have done this on their behalf 
• they’re up to date with their tax records — for example, they have no outstanding tax liabilities 
• their accounting period alignsruns to the tax year — it must run from either:
  • 6 April to 5 April April

  Your client can also use an accounting period that runs from

• 1 April to 31 March,March if— theyou softwaremust they choose supports this. You or your client must:
  • select calendar update periods in the software before the first update is made
  • make ansure adjustmentyou at the end of the first tax year — so that their income and expenses from 1 April to 5 April are included in their tax return

  If you sign up your client,client’s duringsoftware testingcan theysupport willthis not be able to:

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

Who cannot sign up voluntarilyvoluntarily 

You cannot sign up your client voluntarily if they:they: 

• have a payment plan with HMRC HMRC  
• are a partner in a partnership partnership  
• claim Married Couple’s Allowance Allowance  
• claim Blind Person’s Allowance Allowance  
• are currently, or are going to be, bankrupt or insolvent insolvent  
• are an MP, minister of religion or Lloyds underwriter underwriter  
• have income from being a foster carer or being in a shared lives scheme scheme  
• have income from a trust trust
• have income from a furnished holiday let
• are subject to a compliance enquiryenquiry 
• use ‘averaging’ or other arrangements because their profits vary between years — for example, because they’re a farmer, writer or artist

WhatBefore you’llyou need sign up your client 

What client details you’ll need

You’ll need anyour agentclient’s: 

• full servicesname  
• date accountof —birth
• National thisInsurance isnumber  

If different to your HMRCclient onlineis servicesa forsole agentstrader, account.

You’llyou’ll needalso your client’s:need: 

• fulltheir name business name — this is the name they use on their invoices  
• datetheir ofbusiness birth address 
• Nationalthe Insurancenature number of their business (their trade)

For each of your client’s income sources, you’ll need:need: 

• their business start date or the date they started receiving property income income (if this is within the last 2 tax years)
• the accounting method such as cash basis accounting or traditional accounting   
• the tax year your client would like to start using Making Tax Digital for Income Tax Tax

Your client’s accounting period

If your client isuses aan soleaccounting trader,period you’llthat alsoruns need:from 1 April to 31 March, you should make sure the software they choose supports this. You or your client must also: 

• theirselect businesscalendar nameupdate —periods thisin is the namesoftware theybefore usethe onfirst theirupdate invoices is made 
• theirmake businessan address
• adjustment at the natureend of the first tax year — so that their businessincome (theirand trade)expenses from 1 April to 5 April are included in their tax return

Get your client’s permission permission  

You mustshould talk to your client before you sign them up. You should tell them:them: 

• what you’re signing them up to to  
• what it means for them them
• that

HMRC’s new penalties will apply to themyour client if they miss deadlines for for:

• submitting their tax return or
• paying their bill

Your client will not receive a penalty during the testing phase for missing a deadline for submitting a quarterly update.

You should read more information about the new penalties and when they apply.

We’ll write to your client to confirm when they’ve become liable for these penalties.penalties. 

AfterAdd getting your client’sclient permissionauthorisation 

YouYour needexisting to signclient inauthorisations tofor yourSelf agentAssessment servicesare account andrecognised followfor theMaking stepsTax inDigital. yourIf accountyou toare askalready yourauthorised clientby toyour authorise you.client: 

If

• for Self Assessment in your clientHMRC hasonline alreadyservices authorisedaccount only, you formay Selfneed Assessmentto inadd your authorisation from your HMRC online services foraccount agentsto account,your agent services account before you needsign toup copyyour thisclient 
• for authorisationSelf intoAssessment in your agent services account.account Ifalready, youor dothrough nota copydigital thehandshake authorisationfor over,Making theTax Digital for Income Tax, you can sign up processyour cannotclient be— completed.
  see ‘How to sign up your client’ section 

If you are not already authorised by your client for MakingSelf TaxAssessment, Digitalyou forwill Incomeneed Taxto sign into your agent services account, youand canfollow submitthe theirsteps Selfin Assessmentyour taxaccount returnsto onask theiryour behalf.client Theto authorise you. 

Adding your client mustauthorisation checkto theyour informationagent inservices theiraccount taxwill returnnot isremove correctit andfrom letyour HMRC online services account. 

How to sign up your client client  

You’ll need the Government Gateway user ID and password you got when you signed up for an agent services account.account. 

Sign up now

AfterNext you’ve signed up steps

FindRead out more information about how to usinguse Making Tax Digital for Income Tax.

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