ICAEW Chartered Accountants Bristol • UK-wide Supporting clients since 2009

MTD for Sole Traders — Get Ready for April 2026

Making Tax Digital (MTD) for Income Tax is being introduced by HMRC in stages. If you’re a sole trader or self-employed, you may need to keep digital records and submit quarterly updates using HMRC-compatible software. We help you prepare calmly and properly — without jargon.

No obligation. Clear answers. Practical setup support.

Quick MTD check for sole traders (60 seconds)

Complete the form below to see a likely start date and next steps. This is a general guide — if you have mixed income, CIS, multiple businesses, or you’re unsure, book a free review and we’ll confirm properly.

If you have more than one self-employed activity, use your combined self-employment income.
We’ll recommend the simplest MTD-ready approach based on this.
This helps us tailor advice (e.g., CIS deductions vs standard expenses).
If yes, a free review is the quickest way to confirm the right approach.
Read FAQs

What MTD means for sole traders (plain English)

🗂️

Digital records

Income and expenses should be kept digitally rather than paper-only records.

📤

Quarterly updates

You’ll send quarterly updates to HMRC through compatible software.

HMRC-approved software

MTD requires compatible software for submissions and digital links.

🧾

Year-end finalisation

You still finalise after the year ends — quarterly updates are not your final tax bill.

Key point: Quarterly updates are not quarterly tax payments — they are updates only.

How we help sole traders get MTD-ready

1

Confirm if and when MTD applies

We confirm your likely start date and the simplest plan for your situation.

2

Set up a clean digital workflow

We move you from paper/spreadsheets to a tidy digital system you can actually maintain.

3

Quarterly compliance support

We keep you on track with deadlines and submissions (no last-minute panic).

4

Year-end wrap up

We finalise everything after the year ends and keep records tidy.

Want a clear plan for your MTD setup?

Book a free review and we’ll tell you exactly what to do next.

Book a Free MTD Review

MTD for sole traders — FAQs

Do I need to pay tax four times a year under MTD?

No. Quarterly updates are submissions of information, not tax payments. Tax is finalised annually.

Can I keep using a spreadsheet?

MTD requires digital records and compatible software for submissions. Some workflows can involve spreadsheets, but submissions must meet HMRC’s digital requirements. We’ll advise the simplest compliant approach.

I’m a CIS subcontractor — does this affect me?

CIS subcontractors are still self-employed for tax purposes. If your qualifying income meets the threshold, MTD may apply. Book a free review and we’ll confirm your position and the best setup.

I’m not sure about my income level — what should I do?

Use the checker above as a guide, then book a free review and we’ll confirm properly.

Ready to take the stress out of MTD?

We’ll help you understand the requirements, set up a clean system, and keep you compliant — as a sole trader.

Scroll to Top