Making Tax Digital reaches everyone over £30,000 on 6 April 2027. Check if it applies to you →
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Making Tax Digital for sole traders

If you're self-employed with more than £30,000 of turnover, MTD starts for you on 6 April 2027. Here's what changes, and what doesn't.

What changes

  • You keep your business records digitally as the year goes on.
  • You send HMRC four short quarterly updates of category totals. No receipts are sent.
  • Your tax return becomes a final declaration, due by 31 January.

What doesn't change

The amount of tax you pay, the expenses you can claim, and your payment dates (31 January and 31 July) all stay the same.

Mileage, allowances, and equipment

You can still claim mileage at 45p a mile for the first 10,000 business miles (25p after). If your income is small, the £1,000 trading allowance can replace actual expenses. Bigger purchases like tools and vans are usually claimed through capital allowances at the year end.

CIS subcontractors

If contractors take CIS deductions from your pay, your income for MTD is the gross amount before deductions. The deductions count towards your tax bill, and many subcontractors are due a refund. Read how CIS refunds work.

Tools that help

MTD Record Keeper

MTD Record Keeper

Spreadsheet for sole traders & landlords
£4.99
  • Paste in your bank statement and it categorises each transaction
  • Cumulative quarterly totals, ready for bridging software
  • Up to 10 properties, tax set-aside estimate, and mileage log
Buy now – £4.99
CIS Subcontractor Tracker

CIS Subcontractor Tracker

Deductions, refund estimate & expenses
£4.99
  • Logs every monthly CIS statement
  • Flags deductions that don't match your rate
  • Estimates the refund you could claim
Buy now – £4.99

Sole trader questions

Does MTD apply to me if I also have a job?

Your salary doesn't count towards the threshold. Only gross self-employment and property income count. If that's over £30,000 in 2025/26, you're in from April 2027.

Can I claim mileage under MTD?

Yes. You can still use HMRC's simplified mileage rate (45p a mile for the first 10,000 business miles, then 25p) instead of actual vehicle costs.

What if my turnover is under £90,000?

You can use simpler records and send a single total for expenses instead of a breakdown by category.

Source: GOV.UK MTD for Income Tax guidance. General information, not tax advice.