From 6 April 2026, some sole traders and landlords must use it, based on their total annual income from self-employment and property.
You, or your agent if you have one, will need to use software like Coconut that works with Making Tax Digital for Income Tax to:
create, store and correct digital records of your self-employment and property income and expenses
send your quarterly updates to HMRC
submit your tax return by 31 January the following year
The government has set out plans to introduce legislation to require customers to submit their tax return through their Making Tax Digital for Income Tax software.
Who needs to sign up
You will need to use Making Tax Digital for Income Tax if all of the following apply. You:
are an individual registered for Self Assessment
get income from self-employment or property, or both
have qualifying income of more than £20,000
Find out what is included in your qualifying income for Making Tax Digital for Income Tax to check if you need to sign up.
Check if you need to use this service to report your sole trader business and property income. Use our online service to find out when you need to start.
3. Get compatible software – Coconut is approved by HMRC
Remember to connect your existing HMRC online services account to Coconut.
Find out what tasks you need to complete before you use the online service to sign up for Making Tax Digital for Income Tax.
Find out what you need to do after you have signed up and the different tasks you need to do over the tax year. These include creating and storing digital records, sending quarterly updates and what to do if your circumstances change.