Making Tax Digital for sole traders: keep cleaner income and expense records.
If you are a UK sole trader preparing for Making Tax Digital for Income Tax, the first practical job is record keeping. Start one real income or expense record in the free browser ledger, with no account or bank connection; entries stay on this device.
Important: MTD Ledger UK is record-keeping and preparation software, not tax advice, and does not submit directly to HMRC. The free browser ledger helps capture local income and expense records; the Android app adds MTD deadline awareness and optional accountant-export features. Always check current rules with GOV.UK or a qualified adviser.
Who should pay attention to Making Tax Digital?
GOV.UK guidance says Making Tax Digital for Income Tax applies in stages based on total qualifying income from self-employment and property. Qualifying income is gross income before expenses and tax. For sole traders, this makes regular digital record keeping more important than an end-of-year reconstruction from bank statements, notes and memory.
When does Making Tax Digital apply to sole traders?
HMRC's current timetable uses qualifying income reported for an earlier tax year. If you have both self-employment and property income, the gross amounts are combined when working out your qualifying income.
| Qualifying income | Start using MTD for Income Tax |
|---|---|
| Over £50,000 in 2024 to 2025 | 6 April 2026 |
| Over £30,000 in 2025 to 2026 | 6 April 2027 |
| Over £20,000 in 2026 to 2027 | 6 April 2028 |
Check your position: exemptions and special circumstances can change what you need to do. Confirm your status with GOV.UK's eligibility guidance or a qualified adviser. MTD Ledger UK helps with record keeping and preparation; it is not compatible submission software.
What should sole traders record?
A useful sole trader ledger should make the everyday details easy to capture. The aim is not to replace accounting advice. The aim is to avoid missing dates, amounts, categories and notes when you need clean records later.
Business income
Record the date, amount, category and short note for each income entry. This gives you a clearer trail when reviewing totals.
Business expenses
Record costs while they are fresh. Categories and notes help you or your accountant review entries more efficiently.
Quarterly preparation
Keep records ready for quarterly review instead of waiting until the tax year is nearly over.
Accountant handoff
Export CSV files so records can be checked outside the app before any formal filing decision is made.
How MTD Ledger UK fits the sole trader workflow
- Add income and expense entries quickly on Android.
- Review income, expenses and the net position before accountant review.
- Keep quarterly MTD deadline dates visible.
- Export CSV records for accountant, bookkeeper or personal review.
- Use local app lock and safer delete prompts for a more controlled record workflow.
What the app does not do
MTD Ledger UK is not HMRC-recognised bridging software and does not send quarterly updates or final declarations to HMRC. If you need submission software, check HMRC guidance and professional advice. If you need a simple Android ledger for better records before that stage, MTD Ledger UK is designed for that job.
Try it on Android
Scan the QR code or use the Google Play button above.
References
Checked 7 September 2026 against GOV.UK guidance: Find out if and when you need to use Making Tax Digital for Income Tax and create digital records for quarterly updates.