Your tax, returned! Be in with a chance to win £25K by starting Making Tax Digital with Sage now1
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MTD doesn't need to create more work. As a sole trader, manage everything as you go with one free app from Sage. A small change today can help you avoid last minute tax pressure for good.
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:
Making Tax Digital software for sole traders
MTD and Sage software can relieve the common tax admin headaches that sole traders experience today.
Digital records and regular HMRC updates mean your January return is already complete and ready to check.
Digital records and regular HMRC updates give you up-to-date tax estimates, so you always know what you’ll owe.
Whether you work alone or with an accountant, you can easily review every submission to ensure you always pay the correct tax.
Start today and get your tax in order. All it takes is 3 simple steps to get set up for Making Tax Digital for Income Tax.
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.
Features
*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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Actionable tips to make your accounting faster and easier, so you can feel confident that you’ve got it all under control.
Find out more detail on how MTD changes Self Assessment for sole traders.
How does MTD affect sole traders when it comes to Income Tax.
Discover how MTD could become an opportunity for your business.
To get started for MTD, sole traders will need to:
By starting today, this will allow you to;
You don't have to be a finance expert to use Sage bookkeeping and accounting software for self-employed professionals in the UK. Our easy-to-use free cloud solution Sage Individual makes managing your finances simple.
Get visibility of money going in and out of your business, review cash flow and reduce admin. Use Sage Individual to:
Sage Sole Trader makes it really easy to work with your accountant. You can collaborate securely with your accountant online from anywhere on a return. The Sage software and accounting app for sole traders is trusted by thousands of accountants around the UK. We work directly with accountants to ensure our software is always up to date.
You can manually import bank statements or transactions into Sage Sole Trader. Simply download direct from your bank and upload to Sage Sole Trader.
Once you're set up with your new sole trader accounting software, you can automate pulling your data into Sage Sole Trader with automated bank feeds.
No, the software is built for non-VAT-registered sole traders and self-employed professionals filling out the SA103 supplementary page to record self-employment income on your SA100 tax return. If you are a VAT-registered sole traders or director-only limited company, consider Sage Accounting plans instead.
CIS Features will be included in the Sage Sole Trader £7 plan at no additional cost from April 2026, suitable for subcontractors in the construction industry who need to manage and calculate their CIS deductions for tax purposes.
Choose from MTD-ready solutions and start transforming your tax admin today.
