Received a message saying HMRC has signed you up for Making Tax Digital for Income Tax? You are not alone. HMRC began signing up some sole traders and landlords from September 2026. The important next step is to check your position in HMRC’s online services and get your records ready.
This guide explains the practical sequence. It is based on HMRC’s guidance for people it has signed up. Check that page for changes before taking action.
Why has HMRC signed me up?
For 2026 to 2027, the rules generally apply to sole traders and landlords with qualifying income over £50,000 on their 2024 to 2025 return, unless an exemption applies. Qualifying income means gross income from self-employment and property before expenses; it is not your profit. HMRC is signing up eligible people who have not already signed up, in stages from September 2026.
Step 1: Check the message in your HMRC account
Access HMRC online services using your usual details and select Making Tax Digital for Income Tax. Review the self-employment and property sources shown. If a source is missing, new or ceased, follow HMRC’s instructions to correct the information. If you disagree with being in scope, use HMRC’s eligibility guidance and contact HMRC as directed. Avoid making a decision from a forwarded message alone.
Step 2: Choose compatible software
HMRC says you need software that works with Making Tax Digital for Income Tax. Check whether your current bookkeeping software qualifies and covers every relevant income source. HMRC’s page links to its software finder and explains that both free and paid options exist. If your receipts and platform statements are scattered, organise them before choosing a workflow.
Step 3: Catch up your digital records
HMRC says people signed up during the tax year need to create digital records from the start of that tax year and send any overdue quarterly update as soon as possible. The digital records cover income and expenses. You must also keep supporting documents such as invoices and bank statements. See HMRC’s digital-record guidance.
For example, a self-employed driver may need to bring together operator statements, card-platform fees, cash takings, fuel receipts and bank deposits. A retailer may need marketplace reports as well as bank statements. Regular reconciliation helps avoid confusing a net payout with the full sale.
Step 4: Check your update dates
Your HMRC account will show overdue and upcoming quarterly updates. The updates summarise income and expenses; they are not four separate annual tax returns. HMRC currently says no penalty points will be issued for missed quarterly update deadlines for 2026 to 2027, but the records and final quarterly update are still needed before the annual return. The annual return deadline remains important. Use the dates shown in your account and current GOV.UK guidance.
What if you stopped trading?
The answer depends on when all relevant self-employment and property income ceased. HMRC gives different instructions for sources that ceased before 6 April 2026 and those that ceased on or after that date. Do not assume an old business shown in your account can simply be ignored; check HMRC’s specific steps.
How Real Key Accountancy can help
Real Key Accountancy helps sole traders organise income and expense records, reconcile accounts and establish a workable digital bookkeeping routine. See our MTD overview, catch-up bookkeeping support and services. The exact scope of assistance is agreed before work begins; personal tax-return work should be handled by an appropriately authorised adviser.
Unsure where your records stand? Book a free 15-minute bookkeeping check and tell us which software you use, how many income sources you have and whether your records are up to date.
Information checked September 2026. This article is general information, not personalised accounting or tax advice.