Making Tax Digital Starts April 2026
Self-employed tradespeople must keep digital records and submit quarterly updates to HMRC using compatible software.
• April 2026: Income over £50,000/year
• April 2027: Income over £30,000/year
• April 2028: Income over £20,000/year
What is Making Tax Digital (MTD)?
Making Tax Digital for Income Tax changes how self-employed people and landlords report to HMRC. Instead of one annual tax return, you'll need to:
New Requirements:
- • Keep digital records of income and expenses
- • Submit quarterly updates (every 3 months)
- • File annual Final Declaration by 31st January
- • Use HMRC-compatible software
What You Can't Do:
- ✗ Paper records only
- ✗ Manual spreadsheets only
- ✗ File through HMRC website
- ✗ Wait until January to deal with tax
The Challenge for Tradespeople
Here's the reality: MTD requires you to record every job digitally, immediately. Not at the end of the week. Not when you remember. Every single job.
Traditional accounting software expects you to sit at a computer and type in invoices. But when you're:
- • Finishing a job at 5pm and heading straight to the next one
- • Covered in dust/paint/grease
- • Just want to get home
...are you really going to open accounting software and fill in forms? This is why MTD will be a nightmare for busy tradespeople.
Why We Built Honest Invoices
Record every job in 30 seconds. While you're still on site.
Honest Invoices solves the hardest part of MTD: actually keeping digital records without it being a burden.
- Voice-to-invoice technology — Finish a job, pull out your phone, speak the details. Professional invoice created and stored digitally. Takes 30 seconds.
- Never miss recording a job — Because it's so quick, you actually do it every time. No more "I'll do it later" that becomes "I forgot."
- Automatic digital storage — Every invoice saved with date, amount, customer, VAT. Exactly what MTD requires for income records.
- Income summaries ready — See your monthly and quarterly totals at a glance. Your income side is already organized for MTD reporting.
The Complete MTD Picture
To fully comply with MTD, you need more than just invoice records. Here's what's required and how Honest Invoices fits in:
✓ Honest Invoices Handles
- Digital invoice records
- Income tracking and summaries
- Customer records
- VAT calculations (if registered)
- Export to accountant/software
You'll Also Need
- Expense tracking (materials, fuel, etc.)
- Quarterly calculation software
- Direct HMRC submission capability
- Final Declaration filing
We're building these features — coming before April 2026
Recommended MTD Strategy (Right Now):
- 1. Start using Honest Invoices today to record every job digitally. This solves the hardest part — actually maintaining digital income records consistently.
- 2. Track expenses separately for now (receipt app, or traditional accounting software).
- 3. For quarterly submissions, choose one:
- • Export from Honest Invoices → give to your accountant quarterly
- • Export from Honest Invoices → import to Xero/QuickBooks/FreeAgent
- • Wait for our full MTD submission features (coming 2026)
Why Start Digital Records Now?
Build the Habit
MTD isn't just software — it's a behavior change. Start recording every job digitally today, and when April 2026 (or 2027/2028) arrives, you're already ready.
Avoid the Panic
Thousands of tradespeople will scramble in late 2025/early 2026. Start now and you'll be calm while everyone else is stressed.
Better Business
Digital records mean you actually know what you've earned this month. No more guessing. Better cash flow awareness.
MTD Timeline: When Does It Apply to You?
Important: It's Based on Turnover (Income Before Expenses)
The £50,000/£30,000/£20,000 thresholds are your gross income — what you invoice customers, before you deduct materials, fuel, etc. If you invoice £55,000 but have £20,000 in expenses (£35,000 profit), you're still over the £50,000 threshold.
Example:
You're a plumber who invoiced £52,000 in the 2024/25 tax year. You file your tax return by 31st January 2026. HMRC sees you're over £50k, so from 6th April 2026, you must start using MTD. Your first quarterly update covers April-June 2026 and must be submitted by early August 2026.
Future-Proof Your Business Today
Start recording every job digitally. Build the habit before MTD forces you to.
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