Since April 2026, HMRC requires sole traders earning over £50,000 to file quarterly updates digitally. If you earn over £30,000, April 2027 is your deadline, and it's coming fast.
HMRC is moving everyone to digital, quarterly updates. It sounds like more admin, but with the right software, most of it happens in the background.
Create your free Clear Books account and get set up in minutes.
Record your income and expenses and categorise transactions. We do the maths.
Four times a year, we walk you through your quarterly update, usually under 10 minutes.
End of the year, we prepare your final declaration to HMRC. Done.
MTD for Income Tax is now live for higher earners. Check if you're already in scope, or when you will be.
If you're under the threshold, you can carry on with annual returns, but Clear Books still helps you stay on top of it without the spreadsheets.
See plans & get started →
How the rules have rolled out, and what's still to come.
MTD for VAT begins for businesses above the VAT threshold.
All VAT-registered businesses must follow MTD rules.
MTD for Income Tax available to early adopters.
MTD for Income Tax mandatory for those earning over £50,000.
Threshold drops to £30,000.
Threshold drops to £20,000.
No timer. No sneaky upgrade walls when you try to file. If you're a sole trader, this is on us.
No tricks.
The new MTD rules will catch a lot of sole traders off-guard. We didn't want price to be the reason someone misses a deadline and gets fined.
So we built a permanently free plan with everything you need to stay on the right side of HMRC. Want extra features? Paid plans start at £5 a month plus VAT.
Sign up to Clear Books and let HMRC know you're moving to MTD for Income Tax via your Government Gateway.
Bring in your income and expenses from the start of the tax year. On a paid plan, connect your bank to import and auto-categorise transactions automatically.
See how quick and painless filing a quarterly update is. You're done. Cuppa earned.
New to MTD or want the detail for your situation? Use the index to jump to any guide, or start with the featured reads below.
The plain-English explainer: what Making Tax Digital is, and the difference between MTD for VAT and MTD for Income Tax.
Start with the basics →The complete pillar guide for sole traders and landlords: who is affected, key dates and how quarterly updates work.
Read the pillar guide →Check your gross income against the thresholds with worked examples and a quick eligibility checker.
Check if it applies →Every MTD date in one place: the Income Tax rollout, quarterly update deadlines and the final declaration.
See the dates →The part of MTD that is already live. Digital records, digital links and filing for VAT-registered businesses.
Read the guide →Sole traders preparing for MTD for Income Tax, now live for higher earners.
Read the guide →Track rental income, manage expenses and stay MTD-compliant.
Read the guide →Get every client MTD-ready, without the hassle.
Read the guide →Sole trader or landlord after the detail for your line of work? Each guide is built around your trade's typical income and expenses, from CIS subcontractors and tradespeople to drivers and clinicians.
Not sure how a rule applies to you? Get an instant, plain-English answer from our free AI assistant, drawn from HMRC guidance, any time of day.
Ask the assistant →Whether you grab the free plan or move up to a paid plan, you'll be set up and submitting in under 15 minutes.
