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:

• to use software that works with Making Tax Digital for Income Tax
 to: 
• keepcreate, store and correct digital records of your business income and expenses  
• send usyour quarterly updates to HMRC  
• submit ayour 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. If you want to sign up at this stage, you can choose whether you want to sign up:

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

HMRC will check that you’re eligible to sign up based on the details that you provide.

From 6 April 2026, ityou willmay becomeneed mandatoryto inuse phasesMaking basedTax Digital for Income Tax. Whether you need to sign up depends on your total annual income from self-employment or property.

YouUse shouldour tool to find out if and when you need to sign up.

If you’llyou needuse toan agent, they can sign you up ininstead.

If future,you know when you need to sign up, you can either:read use Making Tax Digital for Income Tax to find out more information about:

• usewhat thisto serviceexpect voluntarilyafter nowyou —sign forup
• the alldifferent yoursteps self-employmentyou andwill propertyneed incometo sourcestake during the tax year
• continuehelp sendingand support

If you want to sign up now

You will still need to send a Self Assessment tax return for asthe normal

If you useneed anto agent,sign theyup canin signthe youfuture

You upcan instead.either: 

If

• sign you’reup anto agent,test there’sthe aservice differentnow way— to signfor upall your clientself-employment forand Makingproperty Taxincome Digitalsources
• continue forsending Incomea Tax.
  Self Assessment tax return as normal and sign up at a later date

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 either:
  • 6 April to 5 April

  You can also use an accounting period that runs from

• 1 April to 31 March,March if— the software you choosemust supports this. To use this accounting period you must:
  • select calendar update periods in the software before the first update is made
  • make ansure adjustment at the end of your firstsoftware taxcan yearsupport —this 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 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 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

WhatBefore you’llyou needsign up

You’ll need:

• your National Insurance number
• your business start date or the date you started receiving property income (if this is within the last 2 tax years)
• your accounting method such as as cash basis accounting or  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.

Your accounting period

You can 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

How penalties willapply beto charged

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

• submitting your tax return
• paying your bill

You 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 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.

You may be asked to provide further proof of your identity to use this service. You can do this by: 

• using an app on your mobile phone to match a photo of your face to your passport or driving licence
• answering questions about information we already hold about your identity — for example, passport, credit reference, driving licence, Self Assessment, latest P60, or a recent payslip

Sign up now

AfterNext you’ve signed upsteps

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

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

Get help

HelpRead andmore supportinformation forabout how to use Making Tax Digital.

Contact yourfor softwareIncome supplier if you need help creating business records or sending updates.Tax.

If you have anothera query about Makingyour Taxsoftware Digital(such foras Incomecreating Tax, records and sending updates), contact HMRC.your software provider.