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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.

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 that enables you 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

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

3. Get compatible software

4. Sign up for Making Tax Digital for Income Tax

5. Use Making Tax Digital

Updates to this page

Published 23 September 2021
Last updated 16 October 2024 + show all updates
  1. 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. First published.