MTD Hub
Making Tax Digital: what sole traders need to know
MTD for Income Tax Self Assessment is the biggest change to how sole traders report their income in a generation. Here's everything you need to know — and how we can help.
What is Making Tax Digital?
Making Tax Digital (MTD) is HMRC's programme to move the UK tax system online. For sole traders and landlords, this means replacing the annual Self Assessment return with quarterly digital submissions — using HMRC-approved software.
MTD
ITSA
Key dates
April 2026
MTD ITSA goes live — £50,000+ earners
Sole traders and landlords with combined income over £50,000 must use MTD for Income Tax Self Assessment from this date.
April 2027
Threshold drops to £30,000
The income threshold reduces to £30,000, bringing more sole traders into the mandatory MTD regime.
April 2028
Threshold drops to £20,000
HMRC has indicated the threshold will fall further to £20,000, capturing the vast majority of sole traders.
What changes for you
Quarterly updates
Instead of one annual return, you'll submit a summary of your income and expenses to HMRC every quarter — using compatible software.
Digital records
You must keep digital records of all your income and expenses. Paper records alone will no longer be acceptable.
End of period statement
At the end of the tax year, you'll submit a final declaration confirming your figures — replacing the current Self Assessment return.
Compatible software
You'll need HMRC-approved software to submit your updates. We can help you choose and set up the right tool for your business.
How Figtree Finance helps
We've been preparing our clients for MTD for years. Whether you're just hearing about it for the first time or you're already worried about the deadline, we'll guide you through every step.
MTD readiness check
We review your current record-keeping and tell you exactly what needs to change.
Software setup
We set you up on the right MTD-compatible software.
Quarterly submissions
We handle your quarterly updates to HMRC, so you never miss a deadline.
Ongoing support
We're here year-round — answering questions, reviewing your figures, and keeping you compliant.
Common questions
Not sure if MTD affects you?
Get in touch for a free, no-obligation conversation. We'll tell you exactly where you stand and what you need to do.
Talk to us about MTD