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Making Tax Digital

Making Tax Digital: who has to use it, and how to sign up

Making Tax Digital for Income Tax replaces the annual online return for the self-employed and landlords with digital record-keeping, four quarterly updates a year sent through software, and a final declaration. It applies from 6 April 2026 to anyone whose gross self-employment and property income (before expenses) was over £50,000, from 6 April 2027 over £30,000, and from 6 April 2028 over £20,000. The tax and the payment dates do not change; how you report does. This page checks whether and when it applies to you, and walks through the sign-up.

The criteria

Qualifying income is gross, not profit

Add your self-employment turnover to the rent you receive, before any expenses. Pay, pensions, dividends and interest do not count towards it. HMRC uses the figures on the tax return for the year before last: your 2024/25 return decides whether you start in April 2026.

Over £50,000 from 6 April 2026

The first phase. Sole traders and landlords with qualifying income over £50,000 keep digital records from 6 April 2026 and send their first quarterly update by 7 August 2026.

Over £30,000 from 6 April 2027, over £20,000 from 6 April 2028

The second and third phases bring in smaller businesses and landlords. Below £20,000 nothing changes for now; the ordinary return continues.

Partnerships and the rest

Partners in partnerships, and people with only employment, pension or investment income, are not in Making Tax Digital yet and carry on with the ordinary return. Your other income still goes in the final declaration if you are in MTD for a business.

Who can be exempt

Digitally excluded

If age, disability, location or religious belief make it unreasonable to use software, apply to HMRC for an exemption. HMRC decides case by case and writes to confirm.

Certain income and people

Trustees, personal representatives of estates, Lloyd’s underwriters, non-resident companies and people with power of attorney over the taxpayer are outside MTD. Foster carers using qualifying care relief are exempt too.

Income falls below the threshold

If your qualifying income drops below the threshold for three years in a row you can ask to leave. Until then, once in, you stay in.

Apply for an exemption from Making Tax Digital (GOV.UK)

Check whether it applies to you

Enter your gross self-employment turnover and gross rents for the year. If you have run the ‘Do I need to file?’ check, the figures are already here.

Your figures

Everything the business took in. Leave blank if you are not self-employed.

£

All UK property income together. Leave blank if you have none.

£
Enter your turnover or rent to see whether Making Tax Digital applies and from when.

The thresholds and dates

  1. 6 April 2026Qualifying income over £50,000
  2. 6 April 2027Qualifying income over £30,000
  3. 6 April 2028Qualifying income over £20,000

HMRC writes to everyone it expects to be in each phase, based on the return for the year before last, but the duty applies whether or not the letter arrives.

Check if you need to use Making Tax Digital for Income Tax (GOV.UK)

Sign up on GOV.UK, screen by screen

The sign-up is done once, in your Government Gateway account, after you have chosen software. Each screen is listed with what to enter, or shown as it looks on GOV.UK.

Done online

Sign up for Making Tax Digital for Income Tax

A one-off sign-up in your Government Gateway account, done once you have MTD-compatible software. Three screens: check you are eligible, add each business or property income, confirm. From then on, quarterly updates and the year-end declaration go through the software instead of the online return.

Every box can be typed into, here or on the redrawn screens, and what you type stays in the box while you read the rest.

Show the pages as
Screen 1 of 3

Check you can sign up

The service confirms your qualifying income is over the £50,000 threshold, that you have compatible software, and that your Government Gateway account is the one linked to your Self Assessment record.

  • Section

    Qualifying income

    Gross self-employment turnover plus gross rents, before any expenses, from your latest tax return. Over £50,000 means MTD applies from the first phase.

    From your records
    £
  • Section

    Your MTD-compatible software

    The service asks whether you have it; you cannot send updates without it. Free and paid options are on HMRC’s list, and some spreadsheet bridging tools count.

    From your records
  • Section

    Government Gateway user ID

    The one you use for Self Assessment, so the sign-up attaches to the right record. Your UTR and National Insurance number are checked against it.

    From your records
Screen 2 of 3

Your business and property income

Each self-employed business is added separately, with its start date and accounting period. Property income is one entry covering all your UK lets.

  • Section

    Business name and trade

    For each self-employed business: the name (your own name if you have none) and what it does.

    From your records
  • Section

    Date the business started

    From your registration; the service pre-fills it from your Self Assessment record where it can.

    From your records
  • Section

    Accounting period

    6 April to 5 April for almost everyone. Choose the calendar quarters option only if you already keep books to 31 March.

    From your records
  • Section

    Business address

    Where the business is run from; your home address if you work from home.

    From your records
  • Section

    You have UK property income

    Put X if you let property. All UK lets are one ‘property business’ for MTD, with one set of quarterly updates.

    Put X
Screen 3 of 3

Confirm and sign up

Check the summary, give an email address for HMRC’s confirmations, and agree to keep digital records and send updates through software. The sign-up is immediate.

  • Section

    Email address for confirmations

    HMRC confirms the sign-up and sends reminders before each quarterly deadline.

    From your records
  • Section

    You agree to keep digital records and send updates through software

    Put X. From your start date the quarterly updates are mandatory; late ones build up penalty points.

    Put X

What happens after you submit

HMRC confirms the sign-up by email and your software connects to your account. Each quarter you send a summary of income and expenses from your digital records (due 7 August, 7 November, 7 February and 7 May). After 5 April you finalise the year in the software, add any other income such as pay, pensions or interest, and submit the final declaration by 31 January. The tax is paid on the same dates as before.

Sign up for Making Tax Digital for Income Tax (GOV.UK)

What a year looks like once you are in

The same tax, the same payment dates, reported in five steps instead of one.

  1. 1

    Choose software and keep digital records

    Every sale, every expense and every rent receipt is recorded in MTD-compatible software or a spreadsheet linked to it by bridging software. HMRC’s list includes free options for simple businesses. Paper records typed up at the year end are not enough.

  2. 2

    Sign up

    Once, before your first quarterly deadline, in your Government Gateway account. The walkthrough above covers every screen. Your software then connects to HMRC.

  3. 3

    Four quarterly updates

    A summary of income and expenses so far, sent from the software by 7 August, 7 November, 7 February and 7 May. They are not tax returns and no tax is paid with them; HMRC shows a running estimate of the year’s tax.

  4. 4

    Finalise the year

    After 5 April, make any accounting adjustments in the software (allowances, the trading or property allowance, capital allowances) and add your other income: pay, pensions, interest, dividends, gains. This is where the check and walkthrough on this site still help.

  5. 5

    The final declaration

    Confirm the year is complete and correct, in the software, by 31 January. It replaces the tax return. The tax is shown as before.

  6. 6

    Pay on the same dates

    The balance by 31 January, and payments on account on 31 January and 31 July if they apply. Nothing about the amounts or dates changes; only the reporting does. Late updates earn penalty points rather than an immediate fine, with a penalty once the points reach a threshold.

Making Tax Digital for Income Tax (GOV.UK)Sign up for Making Tax Digital for Income Tax (GOV.UK)Find software for Making Tax Digital for Income Tax (GOV.UK)Check if you need to use Making Tax Digital for Income Tax (GOV.UK)
Do I need to file?The check tells you whether you meet the criteria alongside your Self Assessment verdict.Open the checkThe return, box by boxFor the years before your start date, and for the other income you add at the year end.Open the walkthroughPayments on accountUnchanged by Making Tax Digital: what they are and how to change them.Read the explanation