Guidance

Sign up your business for Making Tax Digital for Income Tax

Use the online service to sign your own business up for Making Tax Digital for Income Tax and find out what you'll need to do next.

Making Tax Digital for Income Tax is a new way of reporting earnings to HMRC. You’ll use software to keep digital records and send Income Tax updates instead of filing a Self Assessment tax return.

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

Before you start

Check if you’re eligible and how to follow the rules for Making Tax Digital for Income Tax.

You must have software that’s compatible with Making Tax Digital for Income Tax before you sign up.

What you’ll need

You’ll need your:

  • business name
  • email address
  • National Insurance number
  • Unique Tax Reference number
  • accounting period
  • accounting type such as cash basis or accruals

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

If you do not have a user ID, you can create one when you sign up.

Sign up

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

Sign up now

After you’ve signed up

You’ll need to keep digital records of all your business income and expenses.

Every 3 months you’ll use compatible software to send a summary of your business income and expenses to HMRC. The software will tell you when to send the updates to HMRC, or you can choose to send them more often.

After you’ve sent an update you’ll then be able to see a year to date calculation of how much tax you owe at any time, this is based on the information you provide in the summary.

Send a final declaration every year

At the end of your accounting period, you’ll need to finalise your business income and expenses. You’ll also be able to submit any personal income and reliefs you claim.

You’ll need to make a final declaration and pay the tax you owe by 31st January of the following year.

The final declaration replaces the Self Assessment tax return. You’ll still need to send HMRC a Self Assessment tax return for the tax year before you signed up for Making Tax Digital for Income Tax.

Get help

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 21 February 2020 + show all updates
  1. Welsh translation has been added.

  2. First published.