Get Ready to File 4 Tax Returns a Year

11 August 2025

If you’re a sole trader, big changes are coming to the way you report your income to HMRC — and it’s time to start planning ahead. From April 2026, the government’s Making Tax Digital (MTD) for Income Tax initiative will require all sole traders earning over £30,000 to file four tax returns per year, instead of just one annual Self Assessment. This new system is designed to give HMRC a clearer, more regular picture of your business income — but for many, it means a significant increase in admin and paperwork.

What’s Changing?

Right now, sole traders submit one tax return annually. Under the new rules, you’ll need to:

Digitally record income and expenses
Submit quarterly updates to HMRC (every three months)
Complete an annual End of Period Statement and Final Declaration

That’s four returns a year — at a minimum — which means more deadlines and more reporting. But it doesn’t have to mean more hassle.

We’ll Provide Software – For Free

To help you comply with MTD, we’re offering all our sole trader clients access to HMRC-compliant accounting software, completely free of charge.

This software will make it easier to:

Record your income and expenses as you go
Automatically generate your quarterly submissions
Stay on top of deadlines and avoid penalties
Keep everything in one secure, easy-to-use platform

And of course, we’re on hand to support you — from setup and training to ongoing advice and submission reviews.

Why It Matters Now

Although 2026 might seem a way off, the volume of work will increase – for both sole traders and accountants. With four filing dates per year, your business processes may need to change, and we’ll be working closely with clients over the coming months to ensure everyone is set up in good time.

Next Steps

We’ll be in touch to start moving sole trader clients onto the free software – but if you’d like to get a head start or want to know more, just get in touch.