Making Tax Digital: what it means for you
HMRC's Making Tax Digital rules started in April 2026 for some sole traders. Here is the calm, plain-English version.
We can show you how HelloNoa works, but we're not your accountant or solicitor.
This is general guidance, not tax or legal advice. For your situation, check with a qualified accountant or the tax authority where you are based.
Making Tax Digital (MTD) is HMRC's long-running plan to move tax record-keeping and filing online. Since 6 April 2026 it applies to income tax for the first wave of sole traders, and surveys suggest most people affected are not sure what it actually asks of them. The honest summary: it is less scary than it sounds, and mostly rewards a habit you should have anyway.
Who it affects, and when
MTD for Income Tax applies to sole traders and landlords, based on total self-employment and property income on your tax return. It started on 6 April 2026 for income over £50,000, extends to £30,000 from April 2027, and £20,000 from April 2028. It does not apply to limited companies, which file a Company Tax Return instead.
What actually changes
Two things. First, your business records (income and costs) must be kept digitally, not in a shoebox of receipts. Second, instead of one annual Self Assessment, you send HMRC a short quarterly update of your income and cost totals through recognised software, with deadlines on 7 August, 7 November, 7 February, and 7 May. The updates are running totals, not four tax returns, and if your turnover is under £90,000 they can be as simple as three figures.
What to do about it
If you are near or over the threshold, talk to your accountant about signing up and picking the filing software they prefer, since HMRC does not enrol you automatically. And whatever your income, log costs as they happen rather than reconstructing them in January. Money you never wrote down is money you cannot claim back.
How HelloNoa helps
Your proposals, invoices, and payments already live here digitally, and you can log the costs on a project as you go, with the receipt attached. That is the record-keeping half of MTD taken care of by habit. The filing half, the quarterly submission itself, belongs to your accountant or HMRC-recognised filing software, and we will not pretend otherwise.
Common questions
Does MTD apply to my limited company?
No. MTD for Income Tax covers sole traders and landlords. A limited company files a Company Tax Return instead, and these quarterly updates never apply to it.
Does HelloNoa send my quarterly updates to HMRC?
No. HelloNoa keeps your work records digital and organised. The quarterly submission itself is made through HMRC-recognised filing software or by your accountant.
What if I earn under £50,000?
Then nothing changes for you yet. The threshold drops to £30,000 in April 2027 and £20,000 in April 2028, so it is worth building the digital-records habit now.
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