Making Tax Digital for Sole Traders - April 2026
New MTD thresholds are being phased in - the first applies from April 2026 for those with qualifying income over £50,000 in 2024-25. Don't wait - get ready now!
New MTD thresholds are being phased in - the first applies from April 2026 for those with qualifying income over £50,000 in 2024-25. Don't wait - get ready now!
MTD is HMRC's initiative to make tax administration more effective, efficient, and easier for taxpayers.
Keep digital records using MTD-compatible software instead of paper books and spreadsheets.
Submit income and expense summaries to HMRC every quarter through approved software.
Complete your annual tax return by January 31st deadline as usual, but using digital submissions.
Check if Making Tax Digital applies to your trade business
Phased Introduction - Check Your Threshold!
HMRC will assess your qualifying income to determine your start date
Good News!
You can continue as normal, but we recommend preparing anyway
HMRC will assess your qualifying income to determine if and when MTD applies to you
HMRC will look at your Self Assessment return from the previous tax year to determine your qualifying income for the current year.
Example: To check if MTD applies from April 2026, HMRC will look at your 2024-25 tax return (submitted by 31 January 2026) to see if your qualifying income exceeded £50,000.
The thresholds are being reduced gradually - check which phase applies to you
£50,000+
for 2024-25 tax year
£30,000+
for 2025-26 tax year
£20,000+
for 2026-27 tax year
We'll review your previous tax returns and calculate your qualifying income to determine exactly when MTD will apply to your business.
Get Your Free MTD AssessmentOnce MTD applies to you, these are the critical dates you must meet
Period: 6 April - 5 July 2026
Submission Due: 5 August 2026
⚠️ First MTD submission for Phase 1 businesses
Period: 6 July - 5 October 2026
Submission Due: 5 November 2026
📊 Mid-year progress review
Period: 6 October 2026 - 5 January 2027
Submission Due: 5 February 2027
📈 Final quarter before year-end
Period: 6 January - 5 April 2027
Submission Due: 5 May 2027
🎯 Year-end quarter
Deadline: 31 January 2028
Submit your final tax return for 2026-27 tax year
Payment on Account 1:
31 January 2028
50% of previous year's tax bill
Payment on Account 2:
31 July 2028
Remaining 50% of previous year's tax
⚠️ Payment dates remain the same - only submission method changes with MTD
We handle everything so you can focus on your trade
We choose and set up the best MTD software for your trade, with full training included.
We prepare and submit your quarterly updates to HMRC, ensuring compliance and accuracy.
We help you maintain compliant digital records and ensure all your trade expenses are captured.
Full support throughout the year, including help with HMRC queries and software issues.
Get MTD ready with our fixed-price packages
One-time setup to get you MTD ready
Per quarter after setup (4 times per year)
Total Annual Cost: £499 setup + £396/year (4 quarters) = £895 for Year 1, then £396/year ongoing
Common questions from tradespeople about Making Tax Digital
No, you must keep digital records from April 2026. However, you can still write notes and transfer them to your digital system.
HMRC can issue penalties for late or missing quarterly updates, starting from £200 for late submissions. Repeated non-compliance can result in higher penalties.
Yes, you still need to complete your annual Self Assessment by January 31st. MTD quarterly updates are in addition to, not instead of, your annual return.
We recommend software based on your trade and business size. Popular options include QuickBooks, Xero, and FreeAgent. We'll help you choose the best one.
Don't wait until 2026 - get prepared today
Contact The Trades Accountant
info@trades-accountant.co.uk
Call us now:
0117 441 8862Or WhatsApp:
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