Making Tax Digital guide

Making Tax Digital for sole traders

If you are self-employed, MTD for Income Tax is mainly a question of qualifying income, Self Assessment status and whether your records are ready for quarterly updates.

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Who this affects

MTD for Income Tax applies in phases to sole traders registered for Self Assessment when qualifying self-employment income is over the published threshold for the relevant tax year.

What to prepare

You should know your qualifying income, choose compatible software or bridging software, and create a repeatable routine for income, expenses, receipts and bank records.

Best next step

Use the free checker first, then build a quarterly system before the deadline reaches you. The risk is leaving all record changes until the first quarterly update is due.

Quick answers

Do sole traders need MTD?

Sole traders may need MTD for Income Tax if they are in Self Assessment and their qualifying self-employment income is over the relevant threshold.

Does employment income count?

Employment income is separate. The planning check should focus on qualifying self-employment and property income.

Turn the answer into a system

The free checker gives the likely deadline. The paid packs give the checklist, record routine and next steps.

MTD Starter Pack£19

A simple readiness pack for sole traders and landlords who need to understand their MTD dates, records and quarterly routine.

MTD readiness checklist
Quarterly update calendar
Expense categories cheat sheet
Sole trader spreadsheet template outline
Landlord spreadsheet template outline
Questions to send to your accountant

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MTD Setup Kit£49

The fuller setup kit for turning MTD anxiety into a weekly and quarterly digital record keeping system.

Everything in the Starter Pack
Digital record keeping workflow
Receipt naming system
Quarterly update checklist
MTD software chooser
Landlord and sole trader setup checklists

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