🇬🇧 United Kingdom · Compliance guide
Making Tax Digital for Tradespeople: It’s Live. Here’s Who’s In and What to Check
MTD for Income Tax became mandatory on 6 April 2026 for sole traders and landlords with qualifying income over £50,000. What changes, who comes in next, and what the software in our UK directory says about it.
By WrenchStack Research · Published June 2026 · Updated 1 October 2026 (thresholds, quarterly updates and penalty points checked on GOV.UK) · Not tax advice; confirm your position with HMRC or your accountant.
⏰ The short version
If you’re a sole trader (or landlord) registered for Self Assessment and your qualifying income for 2024 to 2025 was over £50,000, GOV.UK says you should have started using Making Tax Digital for Income Tax from 6 April 2026. You keep digital records, send HMRC quarterly updates through compatible software, and submit your tax return through software by 31 January. The threshold falls to £30,000 from April 2027 and £20,000 from April 2028. HMRC will not apply penalty points for late quarterly updates during the 2026 to 2027 tax year. Of the job-management apps in our UK directory, only Powered Now’s entry says it is ready for MTD for Income Tax, so check your software on HMRC’s software finder.
What MTD for Income Tax requires
If you’re in scope, GOV.UK says you must:
- keep digital records of your self-employment and property income and expenses (spreadsheets are allowed if you use software that links to them);
- send HMRC a quarterly update every 3 months for each business, through compatible software;
- submit your tax return through software by 31 January after the end of the tax year.
"Qualifying income" is your total self-employment and property income before expenses: turnover, not profit. An electrician billing £55,000 is in scope even if profit is half that. HMRC’s software finder on GOV.UK shows which products are compatible; that, not a vendor’s marketing page, is the source of truth.
Points for trades businesses
- CIS subcontractors: income you earn under the Construction Industry Scheme goes into your digital records and quarterly updates with the rest of your self-employment income. Ask any vendor to show how CIS deductions are recorded.
- Materials in your turnover: the thresholds apply to income before expenses, so materials you buy and charge on to customers count towards £50,000 (or £30,000 from April 2027) even when your margin is modest.
- Job apps and MTD: among the job-management apps in our UK directory, only Powered Now’s entry says it is ready for MTD for Income Tax. Our entries for Commusoft, BigChange, Joblogic, Tradify and ServiceM8 name accounting integrations, which is how invoices raised in the job app can reach the records that feed your quarterly updates.
What the software in our UK directory says about MTD
From our UK trades directory, here is what each software and payroll entry says about MTD for Income Tax. HMRC’s software finder is what counts:
| Platform | MTD for Income Tax | What it is |
|---|---|---|
| Powered Now | Says it appears on HMRC’s software list for MTD for VAT and is ready for MTD for Income Tax | Job management for UK trades: quotes, invoices, certificates, CIS and Domestic Reverse Charge; Xero and QuickBooks integrations |
| Commusoft | No MTD for Income Tax filing described in our entry | Job management; integrates with Xero, QuickBooks Online, Sage Accounting and FreeAgent |
| BigChange | No MTD for Income Tax filing described in our entry | Job management and vehicle tracking; names Xero and Sage among its accounting integrations |
| Joblogic | No MTD for Income Tax filing described in our entry | Field service management; links to Sage, QuickBooks, FreeAgent and KashFlow |
| Tradify (UK) | No MTD for Income Tax filing described in our entry | Job management; syncs with Xero, Sage and QuickBooks Online |
| ServiceM8 (UK) | No MTD for Income Tax filing described in our entry | Job management; connects to Xero and QuickBooks Online |
| Sleepless Tradesman | No MTD for Income Tax filing described in our entry | AI quoting and invoicing app; no accounting integration named in our entry |
| Xero Payroll (UK) | Payroll on HMRC’s list of recognised payroll software; our entry covers payroll only | Payroll inside Xero’s UK accounting plans, with RTI filing after each pay run and an optional £5 a month CIS add-on |
| Sage Payroll UK | Payroll on HMRC’s list of recognised payroll software; our entry covers payroll only | Cloud payroll from Sage for up to 150 employees |
| BrightPay | Payroll on HMRC’s list of recognised payroll software; our entry covers payroll only | Payroll; CIS returns need the separate BrightCIS product |
Source: WrenchStack UK directory entries, checked against vendor pages on 30 September 2026. Check the exact product and plan on HMRC’s software finder before buying.
Check whether your job-management app files MTD
Commusoft, BigChange, Joblogic, Tradify (UK), ServiceM8 (UK) run quotes, scheduling, job tracking and customer invoicing, and our entries for them describe no MTD for Income Tax filing. Each names integrations with accounting packages such as Xero, QuickBooks, Sage or FreeAgent, so invoices raised in the job app can reach the digital records behind your quarterly updates. Don’t reject a job platform for "missing MTD", and don’t assume it covers you.
Checklist for tradespeople
- Check your qualifying income. Over £50,000 in 2024 to 2025? You’re in scope now. Over £30,000 in 2025 to 2026? You’re in from 6 April 2027. Over £20,000 in 2026 to 2027? You’re in from 6 April 2028.
- Pick software that HMRC’s finder lists as compatible with MTD for Income Tax, and confirm your plan includes it (not just MTD for VAT).
- Connect your job-management app so invoices and expenses reach the digital records without re-keying.
- Sort CIS handling if you work as a subcontractor: your CIS income and deductions belong in the same records.
- Diarise the deadlines. Quarterly updates are due by 7 August, 7 November, 7 February and 7 May (standard periods), and the tax return by 31 January.
- If you have an accountant, agree who sends the quarterly updates.
Frequently asked questions
Does Making Tax Digital for Income Tax apply to tradespeople?
It applies to sole traders and landlords registered for Self Assessment who get income from self-employment or property, so it covers tradespeople who work as sole traders. GOV.UK says you should have started using it from 6 April 2026 if your qualifying income for the 2024 to 2025 tax year was over £50,000. The threshold is £30,000 from 6 April 2027 (based on 2025 to 2026 income) and £20,000 from 6 April 2028 (based on 2026 to 2027 income).
What changes compared with the old Self Assessment?
GOV.UK lists three things: keep digital records of your self-employment and property income and expenses; send quarterly updates every 3 months for each sole trader and property business, through compatible software; and submit your tax return through software by 31 January after the end of the tax year. If you keep your records in spreadsheets you can carry on, but you need software that links to them (bridging software).
Is my job-management app (Commusoft, Tradify, ServiceM8…) MTD software?
Check rather than assume. Of the job-management apps in our UK directory, Powered Now says it is ready for MTD for Income Tax. Our entries for Commusoft, BigChange, Joblogic, Tradify and ServiceM8 describe no MTD filing, and each names integrations with accounting packages such as Xero, QuickBooks, Sage or FreeAgent. HMRC’s software finder on GOV.UK shows which products are compatible.
I’m a CIS subcontractor: what does MTD mean for me?
MTD for Income Tax covers how you keep records and report your self-employment income. If your qualifying income is over the threshold, the income you earn as a CIS subcontractor goes into your digital records and quarterly updates with the rest of your self-employment income. Ask any software vendor to show you how CIS deductions are recorded.
What is "qualifying income"?
GOV.UK defines it as your total income from self-employment and property before expenses (turnover), based on the tax return you submitted for the previous tax year. So a sole trader who turned over £55,000 in 2024 to 2025 is over the £50,000 threshold even if materials and van costs brought profit far below it.
What happens if I send a quarterly update late?
GOV.UK says HMRC will not apply penalty points for late quarterly updates during the 2026 to 2027 tax year, but you must send the quarterly updates before you can submit your tax return, and penalties for a late tax return still apply. After that tax year, each missed quarterly update deadline earns a late submission penalty point, and reaching 4 points brings a £200 penalty.
Compare the UK options side by side
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