Last reviewed: June 2026. Tax thresholds and dates are set by HMRC and may change - always check the latest guidance on GOV.UK.
Are you in scope?
As a sole trader you're brought into MTD for Income Tax once your qualifying income - your gross self-employment turnover, plus any property income - goes above the threshold for that phase. It's based on turnover, not profit.
| From | Qualifying income | If this is you |
|---|---|---|
| 6 April 2026 | More than £50,000 | You're mandated now |
| 6 April 2027 | More than £30,000 | Mandated next year |
| 6 April 2028 | More than £20,000 | Mandated from 2028 |
Below the threshold?
You're not mandated yet, but you can join voluntarily. Many sole traders start early to spread the admin and get comfortable before their phase begins.
What you'll actually do
Keep digital records of your business
Record your sole-trader income and expenses digitally - in software rather than a shoebox of receipts. Type entries in, import a spreadsheet, or (later) connect a bank feed.
Send four quarterly updates
A short running summary of your business income and expenses, four times a year. See the how-to guide and the deadline calendar.
Submit your final declaration
After the tax year ends, confirm your figures - adding anything else like employment or savings - and submit your final declaration by 31 January. It replaces the old Self Assessment return.
Software built for self-employment
EasyTaxer is purpose-built for Making Tax Digital for Income Tax, developed against HMRC's MTD for Income Tax technical standards. For a sole trader that means a tool focused on your self-employed business - not a general ledger built for a bookkeeper - so there's nothing you don't need.
- Purpose-built for self-employment - simple, focused, plain English.
- Real-time tax estimates so you always know roughly what you'll owe.
- Quarterly updates and final declaration submitted straight to HMRC.
- Transparent pricing from £49/year - final price confirmed after you connect to HMRC.
Prefer to do it all yourself? Read Making Tax Digital without an accountant.
Common questions
I have a small business and some rental income - which threshold am I in?
You add the two gross figures together. The combined total decides which phase you fall into.
Does MTD replace my Self Assessment return?
Once you're in MTD, your final declaration replaces the annual return. You report quarterly during the year, then confirm at year-end.
Is this hard to set up?
No - registering and connecting to HMRC takes minutes. Our getting-started guide walks you through it.
Get your sole-trader tax sorted
Register and connect to HMRC in minutes. Free to set up and explore - pay only when you make your first submission.