Many business owners are searching for answers about Making Tax Digital for sole traders.
In April 2026, HMRC introduced new reporting rules for self employed individuals under MTD for Income Tax.
If you run a business as a sole trader, you may need to change how you keep records and report income.
Which sole traders must comply?
MTD will apply to sole traders with gross business income above £50,000.
The threshold will then reduce:
- £30,000 from April 2027
- £20,000 from April 2028.
If your turnover is above these levels you will need to follow the new digital reporting rules.
What will change?
Under Making Tax Digital, sole traders must:
- keep digital accounting records
- submit quarterly updates to HMRC
- use MTD compatible software
- complete a year end final declaration.
Why you should prepare now
Many sole traders still rely on manual records or spreadsheets.
Moving to digital systems can take time. Planning ahead will help you avoid disruption when the rules begin.
Next steps
If you would like help getting ready for MTD, our team at UHY Ross Brooke will be happy to assist. Please contact us for guidance.
Watch our video or request your free MTD readiness check
We have created a short video explaining Making Tax Digital for sole traders in simple terms.
You can also request a free MTD readiness check to see whether your business is prepared.
If you would prefer to discuss your situation directly, please contact the UHY Ross Brooke team.
How ready are you for MTD?
Request a free MTD readiness check
Free MTD readiness call
We offer landlords and self-employed a free 15-minute Making Tax Digital readiness call.
This call will confirm:
- whether Making Tax Digital applies to you
- what you need to do next
- when you need to be ready
There is no obligation, so book your free call.
Complete the form or call us directly on 01635 555 666.
Independent advice. Clear next steps. No impact on your letting arrangements.
