Scope: Current at 1 October 2026 for sole traders and landlords. Making Tax Digital for Income Tax guidance is changing frequently, so follow the dated refresh notice as well as the live HMRC service.
The short answer
People whose qualifying income on the 2024 to 2025 return was over £50,000 are generally in scope from 6 April 2026, subject to the full eligibility and exemption rules.
Before signing up, confirm the start date, check any exemption, register for Self Assessment and make sure a return was submitted in the last two years. Choose compatible software and identify every self-employment and property source.
HMRC says it started a process from September 2026 to sign up people required for 2026 to 2027 who had not signed themselves up. HMRC uses the information it holds, which may not reflect recent changes, so this is not a reason to wait without checking your status.
Confirm whether you are in scope
Use HMRC’s check-if-and-when guidance. The staged start dates are based on qualifying income shown by the relevant earlier return. An exemption may apply in defined circumstances, including some forms of digital exclusion, but it must be established through the official route.
Partnership income does not by itself bring an individual into the current sole-trader and landlord sign-up rules. A partner may still be in scope because of separate sole-trade or property income. Do not add partnership business details as though they were a sole trade.
Prepare your HMRC record
Check that Self Assessment registration is active and a return has been submitted in the last two years.
List each active and ceased self-employment and property source from the latest return. HMRC’s sign-up guidance asks users to check the sources and add missing ones. Where every relevant source has ceased, follow HMRC’s specific instruction promptly rather than assuming the record will update itself.
Have ready:
- the date the business or property income began if within the last two tax years;
- the tax year MTD use begins;
- business name, address and trade for each sole trade;
- property-income source details; and
- the Self Assessment user ID and password.
Choose and prepare software
Compatible software is needed to create, store and correct in-scope digital records, send quarterly summaries and submit the tax return.
Check what the software supports, including each income source, accounting period, adjustments, allowances and final return. If more than one product is used, confirm that the digital links between them meet the process. Authorise the product only through the official HMRC flow.
Do not choose solely from a headline price. Consider accessibility, support, export, corrections, agent access, data ownership and whether the product covers both MTD for Income Tax and any separate VAT needs.
Complete the official sign-up
Use HMRC’s sign-up page. Sign in with the same credentials used for Self Assessment. HMRC may request identity proof. Check each listed source and the intended start year before confirming.
If an agent acts for you, use HMRC’s agent route and ensure authorisation is in place. Keep the sign-up confirmation, then access the MTD service and authorise the chosen software.
After sign-up
Set the accounting period and update periods correctly before sending the first quarterly update. Create digital records from the applicable start date. Someone signing up partway through a year may need to catch up records and updates from the start of that year.
The 2026 to 2027 first-year penalty treatment for late quarterly updates does not remove the duties to maintain records, submit the final return and pay on time. Use the current HMRC guidance for penalties rather than assuming a general grace period.
Common mistakes
- Treating net profit as qualifying income.
- Signing up before checking an exemption.
- Omitting a property or second sole trade.
- Assuming existing VAT software automatically covers MTD for Income Tax.
- Waiting for a letter despite knowing the threshold test is met.
- Treating quarterly updates as the final tax return.
What to do next
- Work out qualifying income.
- Check the start date and exemption position.
- Reconcile Self Assessment sources.
- Select compatible software.
- Sign up through HMRC and retain confirmation.
- Follow the digital-record checklist.