{"id":574922,"date":"2026-03-19T13:20:08","date_gmt":"2026-03-19T13:20:08","guid":{"rendered":"https:\/\/www.finder.com\/uk\/?page_id=574922"},"modified":"2026-04-13T09:15:53","modified_gmt":"2026-04-13T08:15:53","slug":"making-tax-digital","status":"publish","type":"page","link":"https:\/\/www.finder.com\/uk\/business-banking\/making-tax-digital","title":{"rendered":"What Making Tax Digital means for sole traders"},"content":{"rendered":"

Making Tax Digital (MTD) is knocking on the door, and stats from HMRC<\/a> show that 16.5% of sole traders will be impacted in the first wave. Research from Tide<\/a> estimates that Making Tax Digital will cost eligible sole traders \u00a32.18bn, the equivalent to \u00a3753 per business. Tide\u2019s research also suggests the shift to 5 filings a year will divert an estimated 44 million working days away from running their businesses.<\/p>

So if you\u2019re wondering what this will mean for your business, here\u2019s the sole trader\u2019s guide to everything MTD.<\/p>

What is Making Tax Digital?<\/h3>

Making Tax Digital is a new, modernised way of recording and reporting your income and expenses as a sole trader to HMRC. <\/p>

Instead of completing one self-assessment, you\u2019ll need to use recognised MTD software, send quarterly updates and then submit your tax return by 31 January each year.<\/p>

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