Making Tax Digital (MTD) for Sole Traders & Self Employed
Whether you’re self-employed full-time or running a side business, Sterling & Wells delivers complete support tailored to Making Tax Digital for sole traders.
Our team helps you stay fully compliant with HMRC’s digital reporting requirements – from managing quarterly MTD updates to preparing your annual tax return – with clear, expert guidance for MTD for self employed taxpayers throughout the process.
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Why choose Sterling & Wells for making tax digital for Sole Traders?
Expert MTD Compliance and Accounting Services for Sole Traders
Making Tax Digital For Income Tax Self-Assessment
Tax returns are evolving into a digital-first system. Making Tax Digital (MTD) introduces quarterly digital reporting through approved software, replacing the traditional annual Self Assessment process for eligible taxpayers.
What is Qualifying Income and What Are the Thresholds?
Qualifying Income Determines When Makinng Tax Digital for Sole Traders Apply
Qualifying income is your total gross income from all property businesses (both UK and overseas) and/or self-employment before deducting expenses. It excludes employment income (PAYE), dividends, savings interest, pensions, and capital gains.
April 2026
- MTD for IT applies to individuals with annual self-employment or property income of more than £50,000.
April 2027
- MTD for IT applies to individuals with annual self-employment or property income of more than £30,000.
April 2028
- MTD for IT applies to individuals with annual self-employment or property income of more than £20,000.
Are You Required to Join MTD?
Find Out if MTD Applies to You in Under a Minute
You are required to comply with Making Tax Digital for Income Tax Self-Assessment if all of the following apply:
- You have a National Insurance number.
- You do not qualify for a digital exemption (for example, due to age, health, location, or religious beliefs).
- You are a landlord with UK and/or overseas property income.
- Your annual qualifying income is above £50,000.
If all four apply: You need to comply with MTD
Making Tax Digital Deadline Checker
MTD Deadlines Made Easy – Check Yours in Seconds!
Enter your income to see your deadline
How Sterling & Wells Supports Making Tax Digital for Sole Traders
As a sole trader, you must keep digital business records and submit quarterly tax information to HMRC through MTD-compatible software. Sterling & Wells handles the entire process for you, ensuring full compliance with minimal effort on your part.
Sterling & Wells helps you set up and maintain digital bookkeeping systems that capture your income, expenses, and receipts in a format approved by HMRC.
We prepare and submit your quarterly updates directly to HMRC, making sure every deadline is met and each submission is accurate.
At the end of the tax year, we complete your final declaration, including any additional income, available reliefs, and necessary adjustments—ensuring your tax position is correct and fully compliant.
What Sole Traders Need to Include in Their MTD Quarterly Updates
If you’re a sole trader, HMRC requires you to submit a digital update every three months summarising your business income and expenses as part of MTD for self employed compliance. These updates don’t need full transaction details – just clear totals for each category.
Each quarterly update must include:
The start date of the quarter
Total income and expenses for the period
The end date of the quarter
Property Income:
Your total turnover for the quarter
Any additional business-related income
Business Expenses:
- Regular running costs, including insurance, ground rent, and rates
- Repairs, maintenance work, and general upkeep
- Mortgage interest and other finance costs (with normal restrictions for residential properties)
- Any finance costs carried forward from earlier periods
- Fees for agents, legal work, or professional services
- Payments for cleaners, maintenance workers, or caretakers
- Travel costs related to managing or maintaining the property
- Other expenses such as advertising the property or utility bills during empty periods
Meet the Experts Devoted to Your Success
Meet the Tax Advisors & Accountants at Sterling & Wells who make your growth and success their number one priority.
Why MTD Matters for Sole Traders
Making Tax Digital for self employed businesses and sole traders is designed to help you:
- Keep accurate, real-time business records
- Avoid HMRC penalties for late or incorrect filings
- Track your income and expenses more efficiently
- Make confident financial decisions
Frequently Asked Questions
Below, we’ve answered some common questions about Making Tax Digital for Sole Traders to help you understand the process and your responsibilities.
Does MTD apply to all sole traders?
MTD applies if your annual business income exceeds £30,000. Smaller sole traders can opt in voluntarily.
What software do I need?
Can I manage MTD submissions myself?
When does MTD start for sole traders?
What if I miss a deadline?
Introducing RentalBux: Our
MTD Software for Sole Traders
Generic software doesn’t understand property businesses and require manual intervention to meet deadlines. That’s why we developed RentalBux!
- Built by Property Experts
- Designed for UK Sole Traders
- HMRC Recognised and MTD Compliant
