# Who Does MTD IT Apply To?
Making Tax Digital for Income Tax (MTD IT) is a significant initiative by (HMRC) aimed at modernizing the tax system. Understanding who falls under this scheme is essential for compliance and efficient tax management. Here’s a breakdown of the key groups affected by MTD IT:
### Sole Traders, Self-Employed, and Landlords
1. **Sole Traders**: If you operate as a sole trader and your combined gross income exceeds the specified thresholds, you are required to comply with MTD IT. This includes individuals who run their own business and report their income through self-assessment.
2. **Self-Employed Individuals**: Similar to sole traders, self-employed individuals must adhere to MTD IT regulations if their income surpasses the set limits. This category encompasses freelancers, consultants, and anyone who earns income independently.
3. **Landlords**: If you rent out property and your combined gross income from property and other sources exceeds the thresholds, you fall under MTD IT requirements. This includes individuals who own residential or commercial properties and earn rental income.
### What Client Type Should I Use for MTD IT?
When registering for MTD IT, you should select **Individual** as your client type. This classification allows you to consolidate your income sources seamlessly. By choosing "Individual," you can manage both your sole trade and property income under one MTD IT Self Assessment (ITSA) journey. This streamlined approach simplifies your tax reporting and ensures that you remain compliant with HMRC regulations.
In summary, if you are a sole trader, self-employed, or a landlord with income exceeding the thresholds, it’s crucial to understand your obligations under MTD IT. By selecting the appropriate client type, you can efficiently manage your tax affairs and stay on top of your financial responsibilities. If you have any further questions or need assistance, feel free to reach out to our support team!