In total, 864,000 sole traders and landlords are in scope for the first wave of MTD for Income Tax, according to HMRC estimates. It is all part of HMRC's shift towards digital record-keeping - what it is calling Making Tax Digital (MTD) for Income Tax. What is 'Making Tax Digital' for Income Tax? Making Tax Digital for Income Tax (MTD) is a new way for sole traders and landlords to report their income and expenses to HMRC. When you need to start using Making Tax Digital for Income Tax depends on your qualifying income within the 2024/25 tax year.