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MTD for Income Tax

MTD for Income Tax. Easy.

Simplify tax season and get ready for MTD for Income Tax with Clear Books, HMRC-recognised software for sole traders and landlords.

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The Clear Books dashboard showing income, expenses and a tax estimate
Q1 update submitted
HMRC recognised

HMRC-recognised for MTD for Income Tax and VAT

For sole traders & landlords Quarterly updates Year-end final declaration
HMRC recognised

Report to HMRC with confidence.

Clear Books is officially recognised by HMRC for Making Tax Digital for both Income Tax and VAT, so you can keep records and report throughout the year with confidence, including quarterly updates and year-end submissions.

Submit quarterly updates

Send short summaries of your income and expenses to HMRC every quarter, straight from Clear Books.

Track income in real time

See your income and expenses as they happen, and estimate your tax liability automatically along the way.

Submit your final return

Finalise your year with a year-end statement that replaces your old Self Assessment return.

Income Tax is going digital

What's changing for sole traders and landlords.

From April 2026, sole traders and landlords must follow new MTD for Income Tax rules. Here's what that means in practice.

1

Keep digital records

Record your business income and expenses digitally throughout the year.

2

Submit quarterly updates

Send a summary of your income and expenses to HMRC every quarter.

3

Finalise your return

Complete a year-end statement to finalise your tax return.

Snapping a receipt in the Clear Books mobile app to create a record
Receipt captured
All in one place

Keep your tax records in one place.

Snap a photo of a receipt and Clear Books creates the record for you, or enter bills manually if you prefer. Either way, you stay fully digital and compliant.

  • Snap receipts and create records automatically
  • Enter bills manually if you prefer
  • Stay fully digital and compliant
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Quarterly updates

Submit quarterly updates with ease.

When your quarter ends, Clear Books does the heavy lifting. Track your figures through the quarter, review the summary, then submit to HMRC.

  • Track income and expenses through the quarter
  • Review your quarterly summary
  • Submit directly to HMRC
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Reviewing and submitting a quarterly update to HMRC in Clear Books
Submitted to HMRC
Year-end

Prepare your end-of-year return.

Finalising your Self Assessment takes just three steps in Clear Books.

1

Select your tax year

Choose the tax year you want to finalise.

2

Review your return

Clear Books generates your return from your records for you to check.

3

Adjust and submit

Make any adjustments, then submit your final return.

Raising an invoice and recording a payment in Clear Books
Added to MTD update
Sales & purchases

Track sales and claim your deductions.

Whether you raise invoices or simply record bank payments, your sales are automatically included in your MTD updates and year-end return.

On the purchases side, snap receipts in the app to record them automatically, or enter bills manually, so you claim every deduction you're entitled to.

No surprises

Tax estimates at a glance.

See an estimate of your sole trader or landlord income tax as you go, and dig into detailed reports whenever you want a closer look. No more waiting until January to find out what you owe.

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An income tax estimate and profit and loss report in Clear Books
Tax estimate updated
Common questions

MTD for Income Tax FAQ.

Do I need an accountant for MTD?
No. Clear Books is designed so you can keep digital records and submit to HMRC yourself. You're welcome to work with an accountant too, and they can access your books if you'd like them to.
Do my quarterly updates need to be perfectly accurate?
Quarterly updates are summaries of your income and expenses to date. You can correct figures as you go and finalise everything at year-end, but the submission deadlines still apply, so it's worth keeping your records up to date.
Do quarterly updates trigger a tax bill?
Submitting a quarterly update does not create an immediate tax liability. It gives you visibility of your estimated tax for year-end planning, and your tax is settled through the year-end final declaration.
Get MTD-ready

Try Clear Books free for 30 days.

Clear Books is award-winning online accounting software designed for UK sole traders and landlords. Get ready for MTD for Income Tax the easy way.

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