Who This Affects
Sole traders working in the trades — joiners, decorators, plasterers, roofers, gardeners, mechanics, mobile beauticians, taxi and private hire drivers — are all treated the same way under MTD for Income Tax. Limited company tradespeople are outside MTD for Income Tax (but may be in scope for VAT).
What You Will Need to Track Digitally
- Every job paid by invoice, card or cash.
- Materials and tool purchases.
- Vehicle costs (mileage or actual costs, fuel, insurance, MOT).
- Subcontractor payments (with CIS where relevant).
- Phone, advertising, public liability insurance and other allowable overheads.
Quarterly Updates and Year-End
You will submit four quarterly updates each year summarising income and expenses, plus a final declaration after the tax year that brings everything together and replaces the self-employment pages of your old Self Assessment return.
Best Software for Trades
Trades-friendly MTD software typically focuses on mobile-first invoicing, receipt photo capture, mileage tracking and simple bank feeds. Examples include FreeAgent, QuickBooks Self-Employed, Coconut, Tide accounting, and bridging software for those who already use a spreadsheet.