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For self-employed sole traders

Making Tax Digital for the self-employed.

Staying compliant as a sole trader just got harder, here's how to simplify it, without paying for software you don't need.

Try Clear Books free for sole traders → What's changing?
What's the real issue?

The hidden cost of staying manual.

Managing tax by spreadsheet or paper was already painful. As HMRC tightens the rules, it stops being viable.

Missed deadlines & penalties

Late or missing quarterly submissions trigger HMRC's points-based penalty system, even on modest income.

Confusing paperwork & errors

Copy-pasting between spreadsheets is exactly how the wrong number ends up in HMRC's inbox.

Stress at tax time

Trying to reconstruct a year of records in January is no way to spend the start of the year.

Lost billable hours

Hours spent hunting receipts are hours you can't spend on paid work.

A quick reality check

Sole traders are the largest group MTD will catch.

HMRC's rollout reaches hundreds of thousands of self-employed workers as the income threshold steps down, many of whom have never used accounting software before.

See how Clear Books helps →
What's changing with MTD?

HMRC is moving tax online, and if you're self-employed, it affects you.

Three changes to be ready for: quarterly updates, digital record-keeping, and submitting through compatible software.

Next deadline
Apr 2027
Threshold drops to £30,000, live now for £50k+
4/yr
Quarterly updates required to HMRC
£0
Cost on the Clear Books free plan

What you'll need to do

  • Keep digital records of business income and expenses
  • Send a short summary to HMRC every quarter
  • File a year-end final declaration (replacing your old Self Assessment Tax Return)
  • Use HMRC recognised software to do all three

Even if your total income is low, late or missing submissions can trigger penalties, so it's worth getting set up early.

  • April 2026 Sole traders earning over £50,000
  • April 2027 Threshold drops to £30,000
  • April 2028 Threshold drops to £20,000
There's a better way

Paper, spreadsheets, or proper sole-trader software?

Paper Spreadsheets Clear Books
HMRC recognised for MTD ✕ ✕ ✓
Quarterly submissions in minutes ✕ ✕ ✓
Bank feeds & receipt capture ✕ ✕ ✓
Designed for sole traders ✕ ✕ ✓
Free plan available ✕ ✕ ✓
Shopping list

What to look for in MTD-ready sole-trader software.

HMRC recognised

On HMRC's official list of MTD-compatible software for Income Tax Self Assessment.

Simple for non-experts

If you're not an accountant, the software shouldn't feel like one. Plain language, friendly defaults.

Affordable for small businesses

A genuinely free plan means a tight month never means a missed deadline.

Designed for sole traders

Built around how you actually work, not a stripped-down version of enterprise accounting software.

Why Clear Books

Built for sole traders, not bolted on.

You shouldn't need an accounting degree to file your own tax. Clear Books gives you everything HMRC requires, and not much more to get in your way.

  • Keep digital records on the web or in the mobile app
  • Send HMRC-compliant quarterly updates in minutes
  • Phone, tablet, laptop, same data, everywhere
  • Snap a receipt; we'll pull the figures off it
  • CIS support included for construction subcontractors
  • Free plan available with no timer
Try Clear Books free for sole traders → Explore product features
The Clear Books business dashboard showing bank balance, sales and a profit and loss chart
Q1 update submitted
HMRC recognised
Common questions

Sole-trader MTD FAQ.

When does MTD start for sole traders?
From 6 April 2026 for sole traders with gross self-employed income over £50,000. The threshold drops to £30,000 from April 2027 and £20,000 from April 2028.
Do I still need to file Self Assessment?
Under MTD for Income Tax, your old Self Assessment Tax Return is replaced by four quarterly updates plus a "final declaration" at year-end. Clear Books connects directly to HMRC, so your final declaration is based on the data HMRC holds for you.
Is Clear Books really free for sole traders?
Yes, no trial timer, no "upgrade to file" walls. The free plan covers quarterly updates and the final declaration with no transaction limits.
I'm a CIS subcontractor, am I covered?
Yes. The free plan supports the Construction Industry Scheme out of the box, including recording the CIS deductions taken from your payments.
What if I'm under the threshold?
If you're under the current threshold you can carry on with annual Self Assessment for now. Clear Books still helps you keep tidy records so you're ready when the next threshold step lands.
Free for sole traders, forever

Get MTD-ready in under 15 minutes.

Sign up, add your income and expenses, send your first quarterly update. You're done. Kettle on.

Try Clear Books free → Back to MTD overview