Check the linked official guidance for current rules and your own circumstances.
On this page
Check your income and start date
Use HMRC guidance to check your qualifying income from self-employment and property before expenses. If you run a business and also receive rental income, consider both sources. Your business profit is not the same as qualifying gross income.
MTD starts from 6 April 2026 above £50,000 of qualifying income in 2024/25, from 6 April 2027 above £30,000 in 2025/26, and from 6 April 2028 above £20,000 in 2026/27. Exemptions and the income included can affect your position.
Set up a practical digital records routine
Decide how sales invoices, receipts and bank transactions will enter your records. Keep documents together and flag unclear transactions rather than leaving questions until an update is due. Tell us which software you already use and whether records need bringing up to date.
Agree which tasks you will manage and which tasks you want help with. A spreadsheet can be part of the workflow, but updates must be sent through compatible software, including a suitable bridging connection where needed.
What quarterly reporting changes
Quarterly updates are summaries of income and expenses, not final tax calculations. Annual tax-return work is still needed. Sending updates quarterly does not automatically turn your tax bill into quarterly payments.
Plan a regular handover of records and leave time for questions before submission. Missing receipts and mixed personal/business transactions are easier to resolve when dealt with throughout the year.
Quarterly support and separate annual fees
The calculator offers MTD support at £60 per quarter including VAT. Optional receipts and bank-record work is £30 per quarter including VAT for up to one hour of work. These are quarterly service fees, not monthly charges.
Self Assessment plus self-employment preparation is £120 as a one-off VAT-inclusive fee. Other-income preparation is an optional £40 one-off addition. If you choose annual work and MTD together, the calculator separates the one-off items and quarterly fees in the initial payment.
Questions about mtd for sole traders
Do I need MTD if I also have a job?
Check your qualifying self-employment and property income using HMRC guidance. Do not assume your total income from every source is the figure used for the MTD threshold.
Can I keep using a spreadsheet?
Possibly, with a compatible software or bridging arrangement that supports the required digital records and updates. Discuss your existing workflow before changing tools.
Is MTD support billed monthly?
No. Our MTD support and optional receipts/bank-record work are priced per quarter. One-off Self Assessment work is shown separately.
HMRC: who needs MTD and when · HMRC: sending quarterly updates