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Making Tax Digital for Income Tax for individuals: step by step

Find out how to use Making Tax Digital for Income Tax and how to sign up your business if you’re eligible.

• From: HM Revenue & Customs
• Published: 23 September 2021
• Last updated: 16 October 2024 — See all updates

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 use compatible software to: 

• create and store digital records of business income and expenses 
• send quarterly updates to HMRC 
• submit a tax return and pay tax due by 31 January the following year

If you’re an agent, there’s a different way to sign up your client.

1. Work out your qualifying income

• Work out your qualifying income for Making Tax Digital for Income Tax
  • 16 October 2024
  • Guidance

2. Find out if and when you need to use this service

• Find out if and when you need to use Making Tax Digital for Income Tax
  • 18 November 2024
  • Guidance

3. Get compatible software

• Find software that works with Making Tax Digital for Income Tax
  • 14 November 2024
  • Guidance

4. Sign up for Making Tax Digital for Income Tax

• Sign up voluntarily for Making Tax Digital for Income Tax
  • 1 August 2024
  • Guidance

5. Use Making Tax Digital

• Use Making Tax Digital for Income Tax
  • 8 October 2024

Published 23 September 2021
Last updated 16 October 2024 + show all updates

1. 16 October 2024

   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.

2. 23 September 2021

   First published.