Quick answer
If your turnover plus any property income is over the threshold, you keep digital records of every sale and expense, send four quarterly updates a year, and submit a final declaration by 31 January.
Are you in scope?
If you’re self-employed, add your turnover (sales before expenses) to any property income you have. If that total is over £50,000 on your 2024/25 tax return, you’ve been in MTD since April 2026. Over £30,000 on your 2025/26 return means April 2027. Over £20,000 on your 2026/27 return means April 2028.
The records you need to keep
For each business transaction, your software needs the date, the amount and the category. That covers every sale and every expense. You can still keep paper receipts, but the record itself has to be digital.
What you send
four quarterly updates a year for each trade
a final declaration after the tax year ends, which replaces your tax return
If you have more than one trade, each one gets its own quarterly updates, but their income is added together for the threshold.
Accounting basis
Since 2024/25, the cash basis is the default for sole traders. You record income when you’re paid and expenses when you pay them. You can opt to use traditional accounting instead if it suits your business better.
Getting ready: a checklist
Open a separate bank account for the business if you don’t have one.
Choose MTD-compatible software and connect your bank feed.
Decide whether you or an accountant will send the updates.
Sign up for MTD on GOV.UK, or get your accountant to do it.
Set a monthly reminder to categorise transactions.
Add the four quarterly deadlines to your calendar.