Sign up for Making Tax Digital for Income Tax
Source: gov.uk (2025-05-22)

Use the online service if you're a sole trader or landlord to sign up for Making Tax Digital for Income Tax and find out what to do next.

If you’re an agent there’s a different way to sign up your client for Making Tax Digital for Income Tax (https://www.gov.uk/guidance/sign-up-your-client-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 for sole traders and landlords to report their income and expenses to HMRC.

From 6 April 2026, some sole traders and landlords must use it, based on their total annual income from self-employment and property.

You, or your agent if you have one, will need to use software that works with Making Tax Digital for Income Tax (https://www.gov.uk/guidance/find-software-thats-compatible-with-making-tax-digital-for-income-tax) to:
- create, store and correct digital records of your self-employment and property income and expenses
- send your quarterly updates to HMRC
- submit your 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, you may need to use Making Tax Digital for Income Tax. Whether you need to sign up depends on your total annual income from self-employment or property.

Use our tool to find out if and when you need to sign up (https://www.gov.uk/guidance/check-if-youre-eligible-for-making-tax-digital-for-income-tax).

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

If you know when you need to sign up, you can read use Making Tax Digital for Income Tax (https://www.gov.uk/guidance/using-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 you want to sign up now

You will still need to submit a Self Assessment tax return (https://www.gov.uk/self-assessment-tax-returns/sending-return) for the 2024 to 2025 tax year.

If you need to sign up in the future

You can either:
- sign up to test the service now — for all your self-employment and property income sources
- continue submitting a 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
- 6 April to 5 April
- 1 April to 31 March — you must make sure your software can support this accounting period
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
- 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
- an insolvency practitioner
- a nominee
- a solicitor
Before you sign up

You’ll need to get software that works with Making Tax Digital for Income Tax (https://www.gov.uk/guidance/find-software-thats-compatible-with-making-tax-digital-for-income-tax). When choosing software, always check with the software provider to make sure it meets your needs.

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 cash basis accounting (https://www.gov.uk/simpler-income-tax-cash-basis) or traditional accounting (https://www.gov.uk/self-employed-records)
- 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 apply to you

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 sending a quarterly update.

You should read more information about the new penalties and when they apply (https://www.gov.uk/guidance/penalties-for-income-tax-self-assessment-volunteers).

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

How to sign up

You’ll need the 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 (https://www.tax.service.gov.uk/report-quarterly/income-and-expenses/sign-up/eligibility)

Online services may be slow during busy times. Check if there are any problems with this service (https://www.gov.uk/government/publications/use-software-to-send-income-tax-updates-service-availability-and-issues).

Next steps

You still need to submit a Self Assessment tax return (https://www.gov.uk/self-assessment-tax-returns/sending-return) for the tax year before you started using Making Tax Digital for Income Tax.

Read more information about how to use Making Tax Digital for Income Tax (https://www.gov.uk/guidance/use-making-tax-digital-for-income-tax).

If you have a query about your software (such as creating records and sending updates), contact your software provider.