HMRC's Making Tax Digital: Sole Traders Now Filing Four Returns a Year by 2026
HMRC’s Making Tax Digital (MTD) is changing the game for sole traders, and here’s what you need to know. Starting in April 2026, if you earn over £50,000, you'll need to submit four returns a year—that's right, quarterly self-assessments. Sole traders earning between £30,000 and £50,000 will follow suit in 2027.
We understand this might feel like a lot, but we’re here to make the transition smooth! To help, we’re giving you a free one-year QuickBooks Essentials license (valued at £336) to help you effortlessly manage your books and ensure compliance with the new rules. QuickBooks is designed to simplify bookkeeping—allowing you to snap photos of receipts, track expenses, and upload records directly via your phone. This will reduce the manual hassle of maintaining your records and ensure you meet MTD requirements. Making these quarterly submissions a breeze.
Even better, Chadwick’s is offering free training, so you'll be up and running in no time! After your first free year, QuickBooks Essentials costs only £15+ VAT per month, saving you time and keeping you ahead of the MTD game while eliminating common filing errors.
Preparing for the New Rules
Under MTD, you’ll need to use compatible software to keep digital records and submit quarterly summaries of your income and expenses to HMRC. This real-time system will help you get a better understanding of your tax obligations, allowing for better planning and budgeting.
Not sure how to make this shift? That’s where we come in. Our friendly, knowledgeable staff are here to help you every step of the way. From getting set up with QuickBooks to answering any questions about MTD compliance, we’re just a phone call away.
Flexibility for Smaller Businesses
HMRC has acknowledged the challenges for smaller businesses, and those earning under £30,000 will have more time to adjust. A government review is underway to ensure that MTD will work for smaller sole traders, with more details expected as the program progresses.
The time to prepare is now. We recommend starting your transition early by utilising QuickBooks to organise your books digitally. Getting familiar with the software now will not only save you time but also reduce the risk of errors in your quarterly returns. As your accountants, we're here to guide you through every step of this transition.
If you're interested in getting started with QuickBooks or have questions about MTD, don't hesitate to give us a call on 01789 773182. We're here to help you navigate these changes and make sure you're prepared for a smoother, more efficient tax process.
Prepare for 2026 today, and make quarterly returns a simple part of your business routine!
