Making Tax Digital for Income Tax already applies to some sole traders. Your start date depends on qualifying income from self-employment and property, before expenses, and whether an exemption applies. Check your position before choosing software or assuming your accountant handles every step.

MTD changes how you keep and submit records. It does not turn every invoice into taxable profit or mean you can stop checking the full year-end tax position.

Find your start date

HMRC's current timetable is:

• 6 April 2026: qualifying income over £50,000 in 2024/25.

• 6 April 2027: qualifying income over £30,000 in 2025/26.

• 6 April 2028: qualifying income over £20,000 in 2026/27.

Use HMRC's checker and guidance for your circumstances. Exemptions, residence and the sources of income can affect the answer. Do not rely only on the sales from one trade if you also have property or another self-employed business.

If you should already be using MTD, contact HMRC or your accountant promptly. Buying an app later does not by itself resolve a missed requirement.

Understand the three parts of the work

For an in-scope business, the routine involves keeping digital records, sending quarterly updates and completing the tax return through compatible software. Quarterly updates report information from the records during the year. They are not four separate final tax returns.

The year-end work still matters. You need to check the records, make the relevant adjustments and include the other information needed to settle your tax position. Read HMRC's guidance on the MTD tax return rather than treating the latest quarterly estimate as a final bill.

Choose software for the tasks you actually need

Some software covers records and submissions together. Other arrangements use more than one product. Check that the selected setup supports your income sources, accounting method and the submissions you need.

HMRC's software finder guidance explains the choices. A product described as bookkeeping software is not automatically able to send MTD submissions. HMRC recognition also does not mean the product is the best fit for your business.

Before paying, ask the provider or accountant to show how one ordinary sale and expense reach the quarterly update and how corrections are handled. Check the full price, any transaction limits and how you can retrieve your records if you change products.

Check the links between separate tools

If records pass between software products, the transfer must meet HMRC's digital-link requirements. A manual copy-and-paste routine may not meet them. File imports can be part of a valid setup, but an export button alone is not evidence that the whole process complies.

Use HMRC's digital-record guidance to check the arrangement. Write down where the original records live, how they move and which product submits the update. Have your accountant confirm any uncertainty before relying on it.

Agree the weekly and quarterly responsibilities

A workable routine should answer these questions:

1. Who records income and expenses, and how often?

2. Who checks missing receipts, duplicates and private-use amounts?

3. Who reviews and sends each update?

4. Who deals with corrections and the year-end return?

5. Who checks HMRC's acknowledgement and keeps a copy?

If you use an accountant, put the responsibilities and deadlines in writing. If you work alone, set a regular review rather than leaving all the records until an update is due. The expenses guide can help identify items that need checking.

Where TradePilot fits

TradePilot helps you keep customers, jobs, invoices, expenses and manually logged mileage organised. It provides exports and an accountant workbook. It does not send quarterly updates or tax returns to HMRC and is not presented as MTD-compatible filing software.

You still need a suitable filing arrangement if MTD applies to you. Confirm how TradePilot records would fit that arrangement, including the required digital links, before relying on them for submissions.

Written by Chris, founder of TradePilot.

This is general information, not personal tax advice. Official guidance checked on 16 September 2026. Check your own eligibility, exemptions and deadlines with HMRC.