Are you a Sole Trader? Are you ready for Making Tax Digital (MTD)?
Are you a Sole Trader? Are you ready for Making Tax Digital (MTD)?
With the new MTD for Sole Traders just around the corner – what do you need to know?
From April 2026, sole traders earning over £50,000 will be required to file quarterly returns under MTD for Income Tax.
However, three quarters (74%) of sole traders who were asked said they wanted HMRC to be more proactive with better communications and publicity informing them about what was going on so they can understand how the changes will affect them.
Here at Kennedys Accounting we are already talking to our clients about the changes and making sure they will be ready in time for the phased introduction.
There are an estimated three million sole traders in the UK, meaning up to 1.4m of them are not ready for MTD with less than a year to go before it becomes mandatory.
Research has also shown that younger sole traders are feeling more prepared for MTD as 37% of 25 to 34-year-olds said they felt optimistic about the changes, compared to just 23% of 35 to 44-year-olds and 10% of 45–54-year-olds.
MTD will mean that self employed affected by the changes will need to file 4 quarterly returns and a 5th year end return which coincides with the self-assessment deadline.
See our previous blogs here –
https://kennedysaccounting.uk/landlords-look-out-for-making-tax-digital-letters-insights/
HMRC has started writing to sole traders and landlords, with the first letters sent in April.
Craig Ogilvie, director of Making Tax Digital at HMRC, said: We are issuing letters to customers we believe will be mandated, outlining specific requirements and timelines.
If you need our help, please get in touch with us here at Kennedys Accounting and we will be pleased to assist you.