Introduction

About Making Tax Digital for Income Tax, who needs to use it and by when, and what to expect after you sign up.鈥�

Making Tax Digital for Income Tax is a new way for sole traders and landlords to report income and expenses to HMRC.鈥�

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

You, or your agent if you have one, will need to use鈥�software鈥痶hat works with Making Tax Digital for Income Tax 迟辞:鈥�

  • create, store and correct digital records of your business income and expenses 鈥�
  • send your quarterly updates to HMRC鈥��
  • submit your tax return by 31 January the following year

Who will need to do it鈥�

Sole traders and landlords will need to use Making Tax Digital for Income Tax, unless they are exempt, if the following apply. They:鈥�

  • are registered for Self Assessment鈥�
  • get income from self-employment or property, or both鈥�
  • 丑补惫别鈥�qualifying income鈥痮f more than 拢30,000鈥�

Qualifying income is the total gross income (before deducting expenses or taxes) from self-employment and property in a tax year.鈥�

Other income sources such as from employment (PAYE), partnership income or dividends (including those from your own company) are not included in qualifying income.鈥�

When you will need to use Making Tax Digital for Income Tax听听

Those with a qualifying income:鈥�

  • over 拢50,000 must start using it from 6 April 2026鈥�
  • over 拢30,000 must start using it from 6 April 2027

The government has set out that sole traders and landlords with a qualifying income over 拢20,000 will need to use Making Tax Digital for Income Tax from 6 April 2028. We鈥檒l set out more details at a later date.鈥�

If your qualifying income later drops to 拢30,000 or less for 3 tax years in a row, you will be able to opt out of Making Tax Digital for Income Tax.鈥��

Use our tool to鈥�find out if and when you or your client needs to sign up.

If you want to sign up early鈥�

Sole traders, landlords, and their agents can sign up early to test the service before they鈥檙e required to use Making Tax Digital for Income Tax.鈥�

Signing up early also means you can get dedicated support from HMRC.鈥�

HMRC will not issue penalties for missing quarterly update deadlines during the testing phase. Read more on new penalties and when they apply.鈥�

What to do next鈥�

You can use this guidance to find out more information about:听

  • what to expect after you sign up听
  • the different steps you will need to take during the tax year听
  • what to do if your circumstances change听

To check whether you can sign up early and use Making Tax Digital for Income Tax, read important steps for signing up. For those already signed up, check you鈥檝e completed all steps you need to continue using the service if you are:听