Making Tax Digital: What Every Sole Trader Needs to Know Before April 2026

Over the next 3 years, the vast majority of heating and plumbing sole traders will be required to follow the new Making Tax Digital structure when reporting their income tax. Previously, this has only been applied to VAT registered businesses. Think this change will affect you? Well, here's what you need to know. First, let's cover what's actually changing. From April 2026, all sole traders earning above £50,000 will need to set up with Making Tax Digital software. From 2027, This includes all above earning £30,000. And finally, from 2028, anyone earning above £20,000. Making Tax Digital is a scheme where businesses are required to keep income and expense records digitally in Making Tax Digital compliant software. To comply, you'll have to submit quarterly updates on your income and expenses, as opposed to one single annual tax return. And then at the end of the tax year, you'll need to submit a final declaration. These changes are being rolled out to help encourage more businesses to use software that makes submitting tax returns quicker and easier, avoiding the last-minute scramble for records and ensuring everyone pays a fair amount of tax. Crucially, if you earn over £50,000, you'll need to start with Making Tax Digital this year. All of this may sound like an extra admin burden as you run your business, but the change is made easy by choosing the right software. Software. Making tax digital compliant accounting software like Xero, QuickBooks, and Sage integrate with Gas Engineer Software, meaning you can have all your payments and customers' information automatically transfer into one place after you invoice a job, ready for when you need to submit your quarterly updates. If you want to learn more about the integration with accounting platforms, be sure to check out the link in the description below or the bio in our socials. Thanks for watching.