Making Tax Digital: What Sole Traders Need to Know for 2026
From April 2026, Making Tax Digital (MTD) for Income Tax Self Assessment becomes mandatory for sole traders and landlords with income over £50,000. But what does this actually mean for you?
What is Making Tax Digital?
MTD is HMRC's initiative to modernise the tax system. Instead of filing one annual self-assessment return, you'll need to submit quarterly updates using compatible software.
Who needs to comply?
- Sole traders with income over £50,000 per year
- Landlords with property income over £50,000
- Partnerships where all partners are sole traders or landlords
What you need to do
You'll need to:
- Keep digital records of your income and expenses
- Use MTD-compatible software (like Bosh!)
- Submit quarterly updates to HMRC
- File an End of Period Statement
- Complete your final declaration
How Bosh makes it easy
Bosh is built for MTD from the ground up. We automatically track your transactions, categorise them correctly, and submit your quarterly updates with just a tap. No spreadsheets, no stress.
Our AI understands your business - recognising suppliers like Screwfix and Toolstation, tracking mileage, and ensuring every deduction is claimed correctly.
What happens if you don't comply?
Non-compliance with MTD can result in penalties from HMRC. The good news? With Bosh, compliance is automatic. You focus on your work, we handle the paperwork.
Getting started
The deadline might seem far away, but it's never too early to get prepared. Download Bosh today and we'll have you MTD-ready in minutes, not months.
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