Your client needs to use Making Tax Digital for Income Tax from 6 April 2026 if their total annual income from self-employment and property is over £50,000.

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

If your client’s qualifying income is below this, find out if and when your client needs to use Making Tax Digital for Income Tax. 

You will not be asked about your client’s other sources of income and gains in the sign up service. Once your client is using Making Tax Digital for Income Tax, you or they will add these into their compatible software before submitting their tax return.

When to sign up

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

HMRC will check that your client is eligible to sign up based on the details that you provide.

If your client is signing up voluntarily

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

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

You or your client will 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 your client does 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 your client has told you they have been signed up by HMRC, you can find out what to do next.

If we have not signed up your client, there is still time to sign them up.

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

• making sure their income sources are up to date

• including their latest circumstances in the service

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

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

Before you sign up your client

Check if your client may be exempt from using Making Tax Digital for Income Tax. If your client is exempt, they 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 your client needs to use the service

• get client authorisation for Making Tax Digital for Income Tax

• 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 and your client’s 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 client’s tax return

Getting your client authorisation for Making Tax Digital for Income Tax

You need to get your client’s permission to sign them up. You also need to complete the following steps.

If you are already authorised by your client for Self Assessment

Your existing client authorisations for Self Assessment are recognised for Making Tax Digital for Income Tax.

If you’re already authorised for Self Assessment you can check if the authorisation has been added into your agent services account. If the authorisation is not in your agent services account, you need to add it.

Read more information about checking and adding your client authorisations for Making Tax Digital for Income Tax.

If you’re already authorised for Making Tax Digital for Income Tax through a digital handshake, you can sign up your client without having to manually add the authorisation into your agent services account.

If you’re not authorised by your client for Self Assessment

You’ll need to sign into your agent services account and follow the steps in your account to ask your client to authorise you.

Penalties for Making Tax Digital for Income Tax

If your client needs 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 year (2026 to 2027). Penalties will still apply for late tax returns or if a tax bill is paid 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 your client is signing up voluntarily

You should make sure you and your client understand changes to penalties that apply to volunteers for Making Tax Digital for Income Tax. HMRC will contact your client to confirm when they’ve become liable for these penalties after they’ve signed up.

What you’ll need

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

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

To sign up your client, you’ll need their:

If your client is a sole trader, you’ll also need: 

• their business name — this is the name they use on their invoices

• the nature of their business (their trade)

For each of your client’s income sources, you’ll need: 

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

• to confirm the tax year your client will start using Making Tax Digital for Income Tax

How to sign up your client

You’ll need to use the same user ID and password you got when you registered for an agent services account. 

Sign up now