You need to use Making Tax Digital for Income Tax from 6 April 2026 if your total annual income from self-employment and property is over £50,000.

Qualifying income is your total income from self-employment and property. This is the amount before expenses (also known as turnover), based on the tax return you submitted in the previous year.

If your qualifying income is below this, find out if and when you need to use Making Tax Digital for Income Tax.

You will not be asked about your other sources of income and gains in the sign up service. Once you’re using Making Tax Digital for Income Tax, you’ll add these into your compatible software before you submit your tax return.

When to sign up

If you need to use Making Tax Digital for Income Tax for the 2026 to 2027 tax year, you should sign up now.

HMRC will check that you’re eligible to sign up based on the details that you provide.

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

If you’re signing up voluntarily

You can sign up for Making Tax Digital for Income Tax before you need to use it to help you get ready. You can sign up for the current tax year or the next one.

For example, you may need to use it from 6 April 2027, but you can sign up and volunteer now. 

You’ll need to use software that works with Making Tax Digital for Income Tax to send any missed quarterly updates for the year so far.

What happens if you do not sign up

From September 2026, HMRC will start to sign up anyone who needs to use Making Tax Digital for Income Tax for the 2026 to 2027 tax year and has not signed themselves up. If we’ve signed you up, you can find out what to do next.

If we have not signed you up, there is still time to sign yourself up or ask your agent to do it on your behalf.

When you sign yourself up, you can make sure your details are correct from the start by:

• making sure your income sources are up to date

• including your latest circumstances in the service

When HMRC signs you up, we use only the information we already hold about you. This may not include any changes to your circumstances since you last submitted a tax return.

You may need to update your information in the service or contact HMRC, depending on the changes required.

Before you sign up

Check if you may be exempt from Making Tax Digital for Income Tax. If you are exempt, you will not have to sign up.

You should read the step by step guidance, if you have not already done so, to make sure you:

• understand if you need to use the service

• have software that works with Making Tax Digital for Income Tax — always check with the software provider to make sure their software will meet your needs

• know about the Use Making Tax Digital for Income Tax guide — this explains how to create digital records, send quarterly updates and submit your tax return

Penalties for Making Tax Digital for Income Tax

If you need to use Making Tax Digital for Income Tax from 6 April 2026, HMRC will not apply penalty points for late quarterly updates for the first tax year (2026 to 2027). Penalties will still apply for late tax returns or if you pay your tax bill after the due date.

Read more about changes to penalties that apply for Making Tax Digital for Income Tax, including how penalty points work.

If you’re signing up voluntarily

You should make sure you understand changes to penalties that apply if you’re volunteering for Making Tax Digital for Income Tax. HMRC will contact you to confirm when you’ve become liable for these penalties after you’ve signed up.

What you’ll need

In the sign up service, you should tell HMRC about your self-employment and property income. This includes self-employment or property income that has ceased since you submitted your last tax return.

If all your self-employment or property income sources have ceased since you submitted your last Self Assessment tax return, you need to tell HMRC before the start of the next tax year. If you do not, you will need to use Making Tax Digital for Income Tax. When you contact us, we’ll update your records and send you a letter confirming you will not need to use Making Tax Digital for Income Tax.

To sign up, you’ll need:

• your business start date or the date you started receiving property income (if this is within the last 2 tax years)

• to confirm the tax year you will 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

• the nature of your business (your trade)

How to sign up

You’ll need to use the same user ID and password you got when you registered 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