April 2026 MTD Rollout Explained
Everything sole traders earning over £50,000 need to know about the April 2026 mandatory start date — from registration deadlines to software choices.
Read moreThe independent MTD guide — no accountant required
MTD Is Compulsory from April 2026. Here's What to Do.
Plain-English guidance so you know whether you're affected, what you need to change, and which software makes compliance straightforward — without needing an accountant to translate.
Independent guidance. No financial advice. Updated March 2026.
Editorially independent — not owned by any software company
Regularly updated — we track changes as they happen
Updated 2026-03-31 — content reflects the latest information
Not Sure if You're Affected?
Answer 3 quick questions about your income and we'll tell you exactly when MTD applies to you — and what to do next.
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What is Making Tax Digital for Income Tax?
Making Tax Digital (MTD) for Income Tax Self Assessment is HMRC's programme to move sole traders and landlords away from annual paper returns and onto digital record-keeping and quarterly reporting. Instead of filing once a year, you'll submit a summary of your income and expenses to HMRC every quarter using compatible software.
The change is mandatory for sole traders and landlords with qualifying income over £50,000 from April 2026. The April 2027 rollout extends this to sole traders and landlords earning over £30,000.
Read the full MTD guide£50,000
Income threshold
Annual qualifying income from April 2026
April 2026
Mandatory start date
When MTD becomes compulsory for higher earners
4 per year
Quarterly updates
You'll replace your annual Self Assessment return with 4 quarterly updates
MTD Guides for Sole Traders
Everything you need to understand Making Tax Digital — from the basics through to practical steps for getting your records and software in order before April 2026.
MTD Guides
What is MTD for Income Tax?
A plain-English explanation of what Making Tax Digital for Income Tax means, how it works, and how it differs from Self Assessment.
Read guide
MTD Guides
Am I Affected by MTD?
Find out whether you need to comply with MTD, what counts towards the £50,000 threshold, and when you'll need to start.
Read guide
MTD Guides
MTD Deadlines Explained
Key dates for quarterly submissions, End of Period Statements, and your Final Declaration — with a clear quarterly timeline.
Read guide
MTD Guides
Records You Need to Keep
What digital records HMRC requires, how long to keep them, and whether photos of receipts count as digital records.
Read guide
MTD GuidesPopular
MTD and Spreadsheets
Can you still use a spreadsheet? Yes — but you'll need bridging software. Find out how bridging works and whether it's right for you.
Read guide
MTD Guides
Sole Trader and Landlord Income
If you have both self-employment and property income, find out how MTD applies and how to report both income streams correctly.
Read guide
Stay ahead of MTD deadlines
Your free MTD compliance checklist — plus a heads-up before every key deadline. We send it when it matters, not on a schedule. One click to leave, any time.
Compare MTD Software for Sole Traders
HMRC requires you to use compatible software to submit quarterly updates. Here are four leading MTD options for sole traders, compared side by side.
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⭐ Our Top Pick
Xero
5/5
Best MTD Software for Sole Traders
HMRC-recognised, with automatic bank feeds, professional invoicing, and the UK's best-rated accounting mobile app. Starter plan from £16/month — 30-day free trial, no credit card needed.
- HMRC-recognised
- Automatic bank feeds
- 30-day free trial
- 800+ integrations
Recommended
Xero
From £16/month (Ignite plan). No free plan. 30-day free trial.
Smart, cloud-based accounting for growing businesses
Best for: Growing sole traders
- HMRC-recognised MTD software
- Strong mobile app
- Extensive integrations (800+ apps)
QuickBooks
From £10/month (Sole Trader plan). No free plan. 30-day free trial.
Powerful accounting with MTD built in
Best for: Sole traders wanting comprehensive features
- HMRC-recognised
- Feature-rich platform
- Good reporting and dashboards
Sage
Free tier available (Sage Sole Trader). Paid plans from £7/month. No bank account required for free access.
UK-built accounting with a genuinely free tier for sole traders
Best for: Sole traders wanting a free HMRC-recognised option
- Genuinely free HMRC-recognised tier for sole traders
- UK company with UK-based phone and chat support
- No bank account required to access free plan
FreeAgent
From £19/month (sole trader, direct). Free with qualifying NatWest, RBS, Ulster Bank, or Mettle business accounts.
Accounting built specifically for freelancers and sole traders
Best for: Freelancers and sole traders who want all-in-one MTD + Self Assessment
- Purpose-built for freelancers and sole traders
- Free with NatWest, RBS, Ulster Bank, or Mettle business accounts
- Self-assessment filing included in all plans
Why Trust SoleTraderGuide?
Fully Independent
We don't take payment from software companies to rank them higher. Every recommendation is based on our published scoring criteria — read the full methodology.
Regularly Updated
MTD rules are evolving. We review every guide when HMRC guidance changes and publish a clear “Last updated” date on every page.
Real Editorial Methodology
Software recommendations are based on a published scoring framework covering MTD compatibility, price, ease of use, and sole-trader suitability.
Read our editorial policy and sources & methodology.
Latest MTD Updates
Stay up to date as HMRC refines the MTD for Income Tax programme.
What to Do Before Your First Quarterly Update
A practical checklist for sole traders approaching their first MTD quarterly submission — covering software setup, record organisation, and what to submit.
Read moreFree vs Paid MTD Software: What's the Difference?
Is free MTD software good enough for sole traders? We look at what free options actually include, what they leave out, and when it makes sense to pay.
Read moreLast updated: