Making Tax Digital for Self Employed Sole Traders

Staying compliant as a sole trader just got harder — here's how to simplify it

If you're unsure what Making Tax Digital (MTD) means for your self employed business or how to prepare, you're not alone. Many sole traders are feeling overwhelmed by the new rules, and worried about getting it wrong.

What's the real issue?

The hidden cost of staying manual

Managing your own tax returns is hard enough. But as HMRC tightens the rules, sticking with spreadsheets or paper records is no longer a viable option.

Missed deadlines and penalties
Confusing paperwork and manual errors
Stress at tax time
Lost hours that could be spent on paid work

Did you know? 800,000 sole traders in the UK will need to follow MTD rules from 2026 — but most still aren't ready.

What's changing with MTD?

Making Tax Digital is HMRC's plan to move tax online — and if you're self employed, it affects you.

MTD for Income Tax starts April 2026
You'll need to send updates to HMRC every 3 months
You must keep digital records using compatible software

What happens if you're not ready?
You could face penalties for late or missing submissions — even if your total income is low.

There is a better way

Spreadsheets and paper just won't cut it anymore

	Paper	Spreadsheets	Clear Books
HMRC-recognised
Easy quarterly updates
Built-in error checks
Designed for sole traders

With Clear Books, MTD compliance is simple, automated, and stress-free.

What to look for in MTD-ready software

HMRC-recognised
Simple to use (even if you're not techy)
Affordable for small businesses
Designed for sole traders

Why Clear Books is built for sole traders

Clear Books is accounting software designed to make your life easier.

Whether you do your own books or work with an accountant, join thousands of other businesses on Clear Books, and know we've got your back.

Easily keep digital records
Send HMRC-compliant updates in a few clicks
Use from your phone, laptop, or tablet
Free plan available for sole traders