# How to sign up for Making Tax Digital for Income Tax

> How-to · Last reviewed 22 August 2026

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## Quick answer

Check whether your gross self-employment and property income crossed last year’s threshold, choose HMRC-recognised software, sign up when HMRC invites you or via GOV.UK, then keep digital records and send quarterly updates.

Making Tax Digital for Income Tax is live for higher-turnover sole traders and landlords from 6 April 2026. Qualifying income is turnover before expenses. This is not VAT MTD.

## Steps

### 1. Work out qualifying income

Add gross self-employment and property income from the relevant tax return. PAYE salary does not count. Over £50,000 in 2024/25 means MTD from 6 April 2026; over £30,000 in 2025/26 from April 2027; over £20,000 in 2026/27 from April 2028.

Source: https://www.gov.uk/guidance/work-out-your-qualifying-income-for-making-tax-digital-for-income-tax

### 2. Check HMRC letters and exemptions

HMRC writes to people who must join. Digitally excluded people can apply for an exemption. Limited companies are outside this Income Tax programme.

Source: https://www.gov.uk/guidance/find-out-if-and-when-you-need-to-use-making-tax-digital-for-income-tax

### 3. Choose compatible software

Use software that can send quarterly updates and the year-end declaration to HMRC. Spreadsheet-only records are not enough once you are mandated unless the software bridge is recognised.

Source: https://www.gov.uk/guidance/find-software-that-works-with-making-tax-digital-for-income-tax

### 4. Sign up and send the first quarterly update

Follow the GOV.UK sign-up journey or the prompt in your software. Keep digital records of income and expenses from the start of the tax year you are mandated. Landlords: [how MTD works for landlords](/answers/how-does-making-tax-digital-work-for-landlords/).

### 5. File the final declaration

Quarterly updates do not replace the year-end declaration. Payment dates remain 31 January unless HMRC says otherwise. Guide: [Making Tax Digital](/work-earnings/making-tax-digital-income-tax/).

## Common pitfalls

- Using profit after expenses instead of gross qualifying income
- Confusing VAT MTD with Income Tax MTD
- Waiting for a letter if you already know you are over the threshold and the year has started

## Frequently asked questions

### Can I join before I am mandated?

Yes. Voluntary sign-up is allowed if you already use accounting software.

### Does MTD change how much tax I pay?

It changes how you report, not the tax rates. You still have a Self Assessment bill.

## Sources

- [GOV.UK — Find out if and when you need MTD for Income Tax](https://www.gov.uk/guidance/find-out-if-and-when-you-need-to-use-making-tax-digital-for-income-tax)
- [GOV.UK — Work out qualifying income](https://www.gov.uk/guidance/work-out-your-qualifying-income-for-making-tax-digital-for-income-tax)

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Independent UK money guidance from [Money Guide](https://moneyguide.org.uk). Information only — not regulated financial advice.