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Take control of MTD with Sage Sole Trader

Whether HMRC has contacted you, signed you up automatically or you simply want to get ahead, we’ll help you understand what to do next.

With Sage Sole Trader, you can get ready for Making Tax Digital in three simple steps.

Connect. Sort. Submit.

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Wherever you are with MTD, start here

Making Tax Digital doesn't have to be complicated.
Whether you're just getting started or picking up where you left off, use the steps below to complete your setup and get ready to submit with confidence.

Connect

Getting connected now can save time later. Watch these quick step-by-step videos to connect Sage to HMRC, link your bank account and give your advisor access if you work with one.
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Connecting Sage to HMRC (1:09)

This important step means your MTD update reaches HMRC securely. Completing this step early means you can make sure everything goes smoothly when it comes to submission time.
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Connecting a bank feed (1:43)

There are several ways to add your income and expenses, but linking your bank account is a fast, secure way to pull everything in automatically. No manual entry, no missed receipts.
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Connecting an advisor / accountant (2:36)

If you're supported by a bookkeeper or accountant, then connecting them to your Sage account is quick and easy. You can manage or disconnect advisors at any time.
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Sort

See how to categorise your income and expenses in a few taps–the app can do the heavy lifting, and your digital records build themselves.
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Categorising transactions (2:31)

Stay organised and get a clearer view of your cashflow. Mark transactions as personal to exclude them from business totals, so they don't affect your quarterly updates or year end figures.
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Autocategorisation (2:29)

To save you time, Sage Copilot will automatically categorise any transactions it recognises. Up to 25 autocategorisations per month included on the Free plan, or upgrade to unlock unlimited.
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Multi actions (1:35)

Update multiple records at once with multi actions. Reduce repetitive work, improve consistency and save time by updating transactions in bulk rather than one by one. Two bulk actions per month in the Free plan, upgrade for more.
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Submit

Watch how to send your quarterly update straight to HMRC from the app–and see exactly what happens when you hit the button.
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Submitting your quarterly return (2:11)

Find out how to quickly adjust, verify and submit your update - and what happens next.
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Income Tax Summary Report (SA103s) (1:47)

Use the summary report to help you quickly and accurately complete your tax return.
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Frequently asked questions

If HMRC's automatic sign-up has left you with questions, you're in good company. Here are some answers.

HMRC will use the qualifying income reported in your tax return to determine when you need to start using MTD. Qualifying income is your total gross income from self-employment and property, before expenses are deducted.
MTD applies from:
  • 6 April 2026 if your qualifying income is over £50,000
  • 6 April 2027 if your qualifying income is over £30,000
  • 6 April 2028 if your qualifying income is over £20,000
HMRC will contact you if its records show that you need to start using MTD, but you should also check your income to see if MTD applies to you.

You don’t need to sign up again.
You’ll still need to connect Sage Sole Trader to HMRC, bring your digital records up to date and send any quarterly updates that are due.
Start with the Connect step above to link your software and continue your MTD setup.

Yes. In fact, getting started early can make your transition to MTD much smoother.
You can sign up, connect Sage Sole Trader to HMRC, get your records organised and familiarise yourself with the submission process before MTD becomes mandatory for you.
Starting now gives you time to build good habits, understand what's required and feel confident when it's time to submit your updates.

You don’t have to wait for HMRC to sign you up.
If you need to use MTD for the 2026 to 2027 tax year and HMRC has not signed you up automatically, there is still time to sign yourself up.
If you are unsure when MTD applies to you, check your qualifying income and follow HMRC’s guidance before signing up.

No. Your quarterly update contains totals for the income and expense categories used for your self-employment or property business.
HMRC does not receive the details of individual digital records, such as individual receipts or invoices, as part of your quarterly update.

No. Quarterly updates are summaries of the income and expenses from each self-employment or property business included in MTD.
Other sources of income, such as employment income or savings interest, are not included in your quarterly updates. They may still need to be included when you submit your annual tax return.

You still need to send a quarterly update to tell HMRC that you had no income or expenses during the update period. Your software will help you prepare and send the update.

If you miss a submission deadline, submit your update as soon as possible.
Keeping your records up to date and submitting on time will help you stay on track with your MTD obligations and avoid unnecessary complications later in the tax year.
If you're concerned about a missed deadline, check the latest guidance on the HMRC website.

You’ll receive confirmation that your update has been sent.
You’ll also be able to see an estimate of the tax due on your self-employment and property income in your software or HMRC online account. This is an estimate rather than your final tax bill, and its accuracy will depend on the information available.
Submitting quarterly updates doesn't change when you pay tax. You'll continue to pay any tax due in line with HMRC's existing payment deadlines.

Correct the underlying digital record in Sage Sole Trader as soon as you identify the mistake. Because quarterly updates are cumulative, corrected records will be reflected in a later update.
Your annual tax return must contain complete and accurate information, so don’t wait until the end of the year if you know something needs correcting.

Yes.
You'll still need to submit the Self Assessment return in the usual way for the tax year before you started using MTD.
After that, you'll submit your annual tax return using Sage Sole Trader. MTD changes how you keep records and report to HMRC throughout the year, but you'll still need to finalise your tax position and pay any tax due.

Yes. You can choose to receive updates from Sage about important MTD milestones, guidance and deadlines.
Visit our Privacy Centre to review your communication preferences and choose how you’d like us to keep in touch.
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This guidance is for general information only and is not tax advice. MTD for Income Tax rules depend on your circumstances, including your income sources, qualifying income, start date and any exemptions. Check the latest HMRC guidance or speak to an accountant or tax adviser if you are unsure.

The tools you need for your quarterly update are already in Sage Sole Trader

Watch our free on-demand video where one of our experts walks you through how to get set up step by step, from connecting to HMRC to making your submission. No pressure, no jargon, just a clear path to getting it done.
  • Connect your bank in minutes and watch your transactions import automatically.
  • Sort income and expenses with a few taps and create MTD-ready digital records, with no spreadsheets required.
  • Submit your quarterly update directly to HMRC.
  • Simple software with support when you need it.
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