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How-to · Step-by-step

How to sign up for Making Tax Digital for Income Tax

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In short. 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.

Last reviewed:

·Estimated time: 2 hours

The steps

  1. 01

    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.

    Official link →

  2. 02

    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.

    Official link →

  3. 03

    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.

    Official link →

  4. 04

    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.

  5. 05

    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.

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

FAQ

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.
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