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Self Assessment is going digital with new record-keeping tasks. Sage makes it simple with one free app to help manage your income and expenses, for stress-free taxes all year round.
Making Tax Digital (MTD) for Income Tax is HMRC’s move to digitise the Self Assessment process. You’ll still pay your tax at year-end, but the way you submit information becomes digital and more frequent.
From April 2026, sole traders earning over £50,000 will need to use MTD-compatible software to:
Make the move from Self Assessment now and turn a once-a-year headache into year-round peace of mind.
Digital record-keeping and regular updates to HMRC mean that by January, all the information you need is already in the end-of-year return for you to check and submit.
Digital record keeping and regular updates to HMRC create up-to-date tax estimates so that you know how much tax you are going to owe at the end of the year, so that you can plan accordingly.
Whether you're working alone or with an accountant, you can review and check submissions before sending so you only ever pay the correct amount of tax.
Don’t wait to start MTD for Income Tax and make Self Assessment stress-free all year round.
Review and send accurate updates and receive up-to-date tax estimates.
Submit your final return with confidence, supported by accurate updates all year and a tax pot built from real, up-to-date estimates.
Explore our plans to make MTD for Income Tax stress-free all year round. No long-term contracts, commitments, or hidden fees. Upgrade or cancel anytime.
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*Get 3 months free on Sage Sole Trader, then £7 per month (excluding VAT). Terms and conditions apply.
See how our software helps sole traders, landlords, and accounting clients stay compliant, prepped for Income Tax Self Assessment, and saves on time.
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Need to use MTD for Income Tax in 2026? Here's a hands-on, real-world guide comparing how you do things now to what you'll need to do as of April.
If you’ve received an ominous brown envelope from HMRC, or an email, don’t worry. It’s to tell you about a new way to report your tax information. Read our FAQ to learn more.
MTD for Income Tax Self Assessment is being phased in based on income:
HMRC looks at your income from two tax years earlier to decide if you’re included.
No, MTD does not change your tax payment dates. Even though you’ll send quarterly updates, these are not tax returns and you won’t make any payments based on them.
You’ll still:
Only the way you report your income is changing, not when you pay your tax.
If you run more than one self-employed business (for example, you’re a sole trader with two separate trades, or you’re both self-employed and a landlord), HMRC looks at all your self-employed and property income together.
This combined total is what decides when you need to start following Making Tax Digital (MTD) for Income Tax.
The current thresholds are:
You’ll send quarterly updates through MTD-compatible software, showing combined income and expenses from all your businesses. At the end of the year, you’ll make one final digital declaration.
Yes, you can do MTD Self Assessment yourself without the help of an accountant. With Individual, our MTD-compatible software, you can easily track your income and expenses, stay organised, and submit your Self Assessment yourself, all in one place. Everything you need to stay compliant and in control is right at your fingertips.
Yes. Your accountant or bookkeeper can sign up for MTD and submit your quarterly updates for you, just as they can with Self Assessment now. You’ll simply need to authorise them through HMRC’s agent system so they can act on your behalf.
If you're looking for Self Assessment software our plans have you covered:
Sole Trader Free: If you’re just starting out and need to complete an Income Tax Self Assessment return, Sole Trader Free offers basic functionality to help you keep records and complete a return.
Sole Trader: If you are a non-VAT-registered sole trader and you want to send invoices to customers, take payments, and reduce time spent on record keeping, then Sole Trader is right for you.
Accounting Start: If you are a VAT-registered sole trader and want to send invoices and complete VAT returns, then Accounting Start is exactly what you need.
Choose from MTD-ready solutions and start transforming your tax admin today.
