Sole traders
Self-employment income is assessed against the qualifying income thresholds. We help track that figure and prepare records ahead of the relevant start date.
Making Tax Digital for Income Tax
Keep your records ready for Making Tax Digital.
Making Tax Digital changes how sole traders and landlords maintain records and report income to HMRC. Vouched can help you understand when the rules apply, prepare your bookkeeping and manage the required submissions.
MTD changes how records are kept and reported. It does not change how much tax is owed, or when it is paid.
The single annual tax return is replaced by digital record-keeping, quarterly updates and a year-end submission, all through compatible software. Tax remains due under the usual Self Assessment timetable.
Whether and when the rules apply to a particular person depends on their qualifying income and individual circumstances, which we check directly rather than assume.
Who needs to use it, and when
Making Tax Digital for Income Tax is introduced in stages, based on qualifying income.
From 6 April 2026
£50,000+
Qualifying income over this threshold, based on a previous tax return.
From 6 April 2027
£30,000+
Qualifying income over this threshold, based on a previous tax return.
From 6 April 2028
£20,000+
Qualifying income over this threshold, based on a previous tax return.
Qualifying income is broadly the total turnover from self-employment and property income. Eligibility depends on individual circumstances and should be checked with us directly.
What changes
Different requirements replace the single annual return.
- Keep digital records
- Use compatible software
- Send quarterly updates
- Make the required year-end adjustments
- Submit the tax return through compatible software
Quarterly updates are summaries of income and expenses sent to HMRC through software. They are not four separate tax returns, and they do not require tax to be paid quarterly — tax remains due under the usual Self Assessment timetable.
How Vouched can help
Support across the run-up to MTD and the reporting that follows.
Getting ready
- Checking when MTD is likely to apply
- Reviewing current bookkeeping
- Setting up compatible accounting software
- Transferring existing records
- Organising self-employment and property records
- Correcting incomplete or inconsistent records
Once MTD applies
- Maintaining digital records
- Completing regular bookkeeping
- Preparing and submitting quarterly updates
- Making year-end adjustments
- Completing the final tax return
- Dealing with multiple income sources
- Providing ongoing support throughout the year
Getting ready
Five steps before your first submission.
- 01
Check whether the rules apply
We look at qualifying income and circumstances to see whether, and when, MTD is likely to apply.
- 02
Review the current records
We assess how records are kept now and what would need to change to meet the digital record-keeping requirement.
- 03
Choose the appropriate software
We help select compatible software suited to the business or property income involved.
- 04
Bring the bookkeeping up to date
We catch up any incomplete or inconsistent records so the digital records are accurate from the start.
- 05
Start the ongoing reporting process
We settle into a routine of quarterly updates, year-end adjustments and the final tax return.
Sole traders and landlords
How the service applies depending on your income sources.
Individual landlords
Property income counts towards qualifying income in the same way as self-employment income. We keep rental records organised by property and ready for quarterly reporting.
People with both self-employment and property income
Qualifying income is based on the combined total from both sources. We report each income stream separately within the same digital records.
People with more than one business or property income source
Each self-employment or property business is reported individually under MTD. We help keep multiple income sources organised without records becoming tangled together.
FAQ
Common questions about Making Tax Digital.
Qualifying income is broadly the total turnover from self-employment and property income before expenses, based on a previous tax return. The exact calculation depends on individual circumstances.
It depends on your qualifying income: over £50,000 from 6 April 2026, over £30,000 from 6 April 2027, and over £20,000 from 6 April 2028. We would confirm your position individually.
Yes. A final tax return is still required each year, submitted through compatible software alongside the quarterly updates and year-end adjustments.
No. Quarterly updates are summaries of income and expenses sent to HMRC through software. They are not four separate tax returns.
No. Quarterly updates do not require quarterly tax payments. Tax remains due under the usual Self Assessment timetable, unless you choose to pay voluntarily in instalments.
Software compatible with Making Tax Digital for Income Tax. We can help identify a suitable option based on how the business or property income is currently recorded.
Yes. We can handle the bookkeeping, quarterly updates, year-end adjustments and final tax return, or support you alongside your own record keeping.
We can help bring records up to date before MTD applies. The amount of work depends on how far behind things are and how many income sources are involved.
Making Tax Digital for Income Tax applies to sole traders and landlords, not limited companies. A separate Making Tax Digital regime for corporation tax has not yet been introduced.
Exemptions exist in limited circumstances set by HMRC. We cannot confirm exemption without reviewing your specific circumstances, and would not assume eligibility either way.
Prepare before your first MTD deadline.
Tell us how your records are currently managed and we can help identify the work needed before MTD applies.
Discuss MTD with us