Guidance

Sign up voluntarily for Making Tax Digital for Income Tax

Use the online service if you're a sole trader or landlord to sign up voluntarily for Making Tax Digital for Income Tax and find out what to do next.

From:
HM Revenue & Customs
Published
10 February 2020
Last updated
9 January 2023 — See all updates

What Making Tax Digital for Income Tax is

Making Tax Digital for Income Tax is a new way of reporting income and expenses if you’re a sole trader or landlord. You’ll need to:

  • use software that works with Making Tax Digital for Income Tax
  • keep digital records of your business income and expenses
  • send us quarterly updates
  • submit a tax return and pay tax due by 31 January the following year

Who should sign up and when

Making Tax Digital for Income Tax is currently voluntary. You may be able to sign up to help us test and develop the service. From 6 April 2026, it will become mandatory in phases based on your total annual income from self-employment or property.

You should:

  1. Check if you need to sign up.

  2. Check when you need to sign up.

If you’ll need to sign up in future, you can either:

  • use this service voluntarily now — for all your self-employment and property income sources
  • continue sending a Self Assessment tax return as normal

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

If you’re an agent, there’s a different way to sign up your client for Making Tax Digital for Income Tax.

Who can sign up voluntarily

We’ll ask you some questions when you sign up. This will confirm if you’re able to sign up voluntarily.  

You can sign up voluntarily if (all of the following):

  • your personal details are up to date with HMRC
  • you’re a UK resident
  • you have a National Insurance number
  • you have submitted at least one Self Assessment tax return
  • you’re up to date with your tax records — for example, you have no outstanding tax liabilities
  • you use an accounting period that runs from 6 April to 5 April

You can also use an accounting period that runs from 1 April to 31 March, if the software you choose supports this. You must:

  • select calendar quarters in the software before the first update is made
  • make an adjustment at the end of your first tax year — so that your income and expenses from 1 April to 5 April are included in your tax return

You cannot sign up voluntarily if you:

  • have a High Income Child Benefit Charge
  • have a payment plan with HMRC
  • are a partner in a partnership
  • claim Married Couple’s Allowance
  • claim Blind Person’s Allowance
  • are currently, or are going to be, bankrupt or insolvent
  • are an MP, minister of religion or Lloyds underwriter
  • have income from being a foster carer or being in a shared lives scheme
  • have income from a trust
  • have income from a jointly owned property
  • have income from a furnished holiday let
  • are subject to a compliance enquiry
  • use ‘averaging’ or other arrangements because your profits vary between years — for example, because you’re a farmer, writer or artist
  • are signing up on behalf of someone else (unless you’re an agent) — this includes (but is not limited to) if you’re:
    • an insolvency practitioner
    • a nominee
    • a solicitor

If you sign up, during testing you will not be able to:

What you’ll need

You’ll need to get software that works with Making Tax Digital for Income Tax. When choosing software, always check with the software providers to make sure it meets your needs.

You’ll need:

  • your National Insurance number
  • your business start date or the date you started receiving property income
  • your accounting method such as cash basis accounting or traditional accounting
  • the tax year you would like to 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
  • your business address
  • the nature of your business (your trade)

How penalties will be charged

HMRC’s new penalties will apply to you if you miss deadlines for:

  • submitting your tax return
  • paying your bill

We’ll write to you to confirm when you’ve become liable for these penalties.

How to sign up

You’ll need the Government Gateway user ID and password you got when you signed up for Self Assessment.

Sign up now

Online services may be slow during busy times. Check if there are any problems with this service.

After you’ve signed up

Find out more about using Making Tax Digital for Income Tax.

You still need to send a Self Assessment tax return for the tax year before you started using Making Tax Digital for Income Tax.

Get help

Help and support for Making Tax Digital.

Contact your software supplier if you need help creating business records or sending updates.

If you have another query about Making Tax Digital for Income Tax, contact HMRC.

Published 10 February 2020
Last updated 9 January 2023 + show all updates

  1. Welsh translation added.

  2. The date for helping to test and develop Making Tax Digital for Income Tax has been extended to 6 April 2026.

  3. The steps to take and what you will need before using Making Tax Digital for Income Tax have been updated. The criteria for voluntarily signing up now has also been updated.

  4. Information to check if you can voluntarily sign up now has been added. Information on what to do after you’ve signed up has been removed as this is covered in the Using Making Tax Digital for Income Tax guidance.

  5. Information on what you'll need and before you sign up for Making Tax Digital for Income Tax has been updated.

  6. Updated information on what to do after you've signed up.

  7. Added translation

  8. Information has been added to let you know that if you use an agent they can send you an authorisation request link.

  9. Register for a webinar on 29 July for information on the Making Tax Digital for Income Tax pilot.

  10. Welsh translation has been added.

  11. First published.

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