Making Tax Digital is now live. If you are a sole trader or landlord with qualifying income above £50,000, your deadline to be signed up and ready is here. This guide walks you through exactly what you need to do, step by step.
Your First Submission Deadline Is 7th August 2026
HMRC has confirmed that the first quarterly update under Making Tax Digital for Income Tax is due on 7th August 2026. This covers the period 6th April to 5th July 2026. If you have not yet signed up, you need to do so now. Sign-up takes just a few minutes, and once your software is connected to HMRC you will be ready to submit.
Step 1: Check You Actually Need to Sign Up
Before anything else, confirm that Making Tax Digital applies to you. You need to join if your gross income from self-employment and/or property is above the threshold for your tax year. Use HMRC’s official tool on GOV.UK to check your qualifying income and confirm your start date.
Step 2: Check Whether You Are Exempt
Not everyone above the income threshold has to join. You may qualify for a digital exclusion exemption due to age, disability, location, or religious beliefs, or you may be automatically deferred because of certain entries on your 2024 to 2025 tax return. Check your exemption status before signing up.
Step 3: Choose Your HMRC-Compatible Software
You cannot use MTD without compatible software. HMRC’s existing online Self Assessment portal does not work for MTD submissions. You need to choose and set up your software before you sign up. There are over 100 products on HMRC’s approved list, so take the time to check which one suits your business before committing.
What type of software do I need?
| Type | How It Works | Best For |
|---|---|---|
| All-in-one accounting software | Records your income and expenses and submits directly to HMRC | Most sole traders and landlords |
| Bridging software | Connects your existing spreadsheet to HMRC’s systems for submission | Those who prefer to keep spreadsheet records |
Step 4: Sign Up for Making Tax Digital
Once you have compatible software, sign up through HMRC’s official service. You will need the following:
- Your Government Gateway user ID and password
- Your National Insurance number
- Your Unique Taxpayer Reference (UTR)
- Your business start date or the date you started receiving property income, if within the last two tax years
- Details of all active sole trader businesses and property income sources
Can My Accountant Sign Me Up?
Yes. If you use an accountant or tax agent, they can sign you up on your behalf, but only once they have the correct authorisation in place to act for you under MTD. With the deadline of 7th August 2026 approaching, speak to your accountant now if you have not already done so.
Step 5: Connect Your Software to HMRC and Start Keeping Digital Records
After signing up, open your software and look for the option to connect to HMRC. From the first day of your first MTD quarter, you must record all business income and expenses digitally as you go. You cannot reconstruct records at year end.
Step 6: Submit Your Quarterly Updates
At the end of each quarter, your software generates a summary of your income and expenses by category. You review the figures and submit them to HMRC through your software. A quarterly update is not a tax return and you do not need to make any accounting adjustments before sending it. Once submitted, you will see an estimated tax figure which builds up throughout the year.
Step 7: Submit Your Final Declaration by 31st January
After your fourth quarterly update, you complete a Final Declaration. This is where you confirm all your income for the year, claim any reliefs and allowances, and finalise your tax position. The deadline is 31st January after the end of the tax year. For 2026 to 2027, this is 31st January 2028.
What If I Haven’t Received a Letter From HMRC?
HMRC has written to most people in scope, but not receiving a letter does not mean you are off the hook. It is your responsibility to check whether MTD applies to you and sign up if required. Do not wait for a letter to arrive.
