Making Tax Digital for Income Tax for sole traders and landlords: step by step
If you get self-employment or property income, find out how to sign up for and use Making Tax Digital for Income Tax.
This guide is also available in Welsh.
Making Tax Digital for Income Tax is a new way for sole traders and landlords to report their income and expenses to HMRC.
From 6 April 2026, sole traders and landlords must use it if their total annual income from self-employment and property is over £50,000.
You, or your agent if you have one, will need to use software that works with Making Tax Digital for Income Tax to:
- create, store and correct digital records of your self-employment and property income and expenses
- send your quarterly updates to HMRC
- submit your tax return and pay tax due by 31 January the following year
Who needs to sign up
You will need to use Making Tax Digital for Income Tax if all of the following apply. You:
- are an individual registered for Self Assessment
- get income from self-employment or property, or both
- have qualifying income of more than £50,000 — read more about what qualifying income is and what is included
Follow our 5 steps to help you understand what you need to do before, during and after you sign up for Making Tax Digital for Income Tax.
1. Work out your qualifying income
Find out what is included in your qualifying income for Making Tax Digital for Income Tax. This will help you check if you need to sign up and use Making Tax Digital for Income Tax by 6 April 2026.
2. Find out if and when you need to use this service
Check if you need to use this service to report your self-employment and property income. You can use our online tool to find out when you need to start.
3. Get compatible software
HMRC does not provide software for Making Tax Digital for Income Tax.
Find out about the software options available for Making Tax Digital for Income Tax and how to choose the right software for your needs.
4. Sign up for Making Tax Digital for Income Tax
Find out what tasks you need to complete before you use the online service to sign up for Making Tax Digital for Income Tax.
5. Use Making Tax Digital
Find out what you need to do after you have signed up and the different tasks you need to do over the tax year.
These include creating and storing digital records, sending quarterly updates, submitting your tax return using compatible software, and what to do if your circumstances change.
Updates to this page
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The introduction has been updated to focus on those who must use Making Tax Digital from April 2026. The software step has been updated to confirm that HMRC does not provide software for Making Tax Digital for Income Tax.
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Information about who must sign up for Making Tax Digital has been updated.
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Added introduction to Making Tax Digital for Income Tax and added descriptions for each step.
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A new step 1 has been added to work out your qualifying income. The steps to check if you need to use this service and when you can sign up have been combined into step 2.
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First published.