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Making Tax Digital

Making Tax Digital for tradespeople

If you are a sole trader with turnover over £50,000, HMRC now wants your records kept digitally and a short update sent every three months. Over £30,000 joins in April 2027. Here is who Making Tax Digital (MTD) applies to, when, and what you need. No jargon.

Last checked against GOV.UK on 2 October 2026.

Who has to use Making Tax Digital, and when

It depends on your qualifying income, which is your total self-employed and property income before expenses. Turnover, not profit.

Over £50,000

You start from

6 April 2026

Based on your tax return for

2024 to 2025

Over £30,000

You start from

6 April 2027

Based on your tax return for

2025 to 2026

Over £20,000

You start from

6 April 2028

Based on your tax return for

2026 to 2027

Source: GOV.UK, check if you need to use Making Tax Digital for Income Tax (opens in a new tab)

If you are a limited company, this does not apply to you. If you are VAT registered, you are already doing Making Tax Digital for VAT, and this is separate.

What Making Tax Digital makes you do

  1. 1

    Keep digital records

    Your income and expenses, kept in software or in a spreadsheet that connects to software HMRC recognises. Paper on its own no longer counts.

  2. 2

    Send a quarterly update

    A short summary to HMRC every three months, sent from software it recognises. Updates are due on 7 August, 7 November, 7 February and 7 May.

  3. 3

    Send your tax return

    Due by 31 January after the tax year ends, sent from your software.

Source: GOV.UK, send quarterly updates (opens in a new tab)

Where TradeBooked fits

TradeBooked is not Making Tax Digital software and does not file with HMRC. It does the half of the job that happens on site.

Every invoice is a digital record

Raise it once in TradeBooked, on your phone, when the job is done.

It goes straight to your books

Invoices and payments are sent to FreeAgent or Xero automatically. Nothing is typed twice, which is what HMRC means by a digital link.

Your accounting software files

FreeAgent or Xero sends the quarterly update, with the expenses you record there.

Connecting FreeAgent or Xero is included on Pro and Autopilot.

Source: GOV.UK, create digital records (opens in a new tab)

What TradeBooked does not do

  • It does not send quarterly updates or your tax return.
  • It does not record your expenses. Do those in your accounting software.
  • It is not on HMRC's list of recognised software. Your accounting software is the part that files, so that is the one to check on the list.

Source: GOV.UK, choose the right software for Making Tax Digital for Income Tax (opens in a new tab)

Making Tax Digital questions from tradespeople

Is TradeBooked Making Tax Digital software?
No. TradeBooked does not send quarterly updates or tax returns to HMRC. It keeps your invoices and payments as digital records and sends them to FreeAgent or Xero, which do the filing.
Do I need accounting software as well as TradeBooked?
If Making Tax Digital (MTD) applies to you, yes. You need software HMRC recognises to send the quarterly updates. TradeBooked feeds it your sales.
Can I still use a spreadsheet?
Yes, if it connects to software HMRC recognises, often called bridging software. You cannot copy and paste figures across by hand.
My accountant does my tax. Does this change anything?
Your accountant can still file for you under Making Tax Digital. They will want your income as digital records through the year, not a pile of paperwork in January. Connecting TradeBooked to their software gives them that.
I am under the threshold. Should I care?
Not yet. The Making Tax Digital threshold drops to £30,000 in April 2027 and £20,000 in April 2028, so check your turnover each year.
I am VAT registered and already do Making Tax Digital. Is this the same thing?
No. Making Tax Digital for VAT is separate. Making Tax Digital for Income Tax sits alongside it and has its own quarterly updates.
Does TradeBooked count as a digital link?
The invoice is created in TradeBooked and sent to FreeAgent or Xero without anyone re-typing it. That automatic transfer is a digital link.
Which plans include the FreeAgent and Xero connections?
The FreeAgent and Xero connections are available on Pro and Autopilot.
I am on the Solo plan. What does that mean for Making Tax Digital?
Your invoices are still kept in TradeBooked. The automatic connection to FreeAgent or Xero is on Pro and Autopilot.

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