Who This Page Is For
This guide covers freelancers (writers, designers, developers, photographers, translators), sole-trader contractors (interim managers, IT contractors operating unincorporated), and independent consultants. If you trade through a limited company, see our note below.
When MTD Applies to You
Mandation is staged by gross self-employment plus property income:
- Over £50,000 — from April 2026
- £30,000–£50,000 — from April 2027
- £20,000–£30,000 — from April 2028
What You Will Need to Do
- Keep digital records of every invoice raised and allowable expense.
- Submit four quarterly updates to HMRC each tax year.
- Submit a final declaration after the tax year to finalise your tax position.
Limited Company Contractors
If you contract through your own limited company, MTD for Income Tax does not apply to your company income. Your salary and dividends are reported via PAYE and Self Assessment respectively. If your company is VAT-registered, MTD for VAT applies to the company.
Software That Suits Freelancers and Consultants
Lightweight options that work well for freelancers include FreeAgent (popular with contractors), QuickBooks Self-Employed, Coconut, and Excel-based bridging software. Look for mobile receipt capture, simple invoicing, and the ability to file quarterly updates without leaving the app.