Do I have to use software for Making Tax Digital?

Yes. If MTD for Income Tax applies to you, HMRC requires digital records kept in software and quarterly updates submitted through software that connects to their APIs. Spreadsheets on their own no longer meet the rules once you are mandated.

When does Making Tax Digital apply to me?

From 6 April 2026 if your qualifying self-employment (and property) income was over £50,000 on your 2024-25 tax return. From April 2027 the threshold drops to £30,000, with £20,000 planned from April 2028.

Do I pay tax every quarter under MTD?

No. Quarterly updates change how you report, not when you pay. You still pay your tax on the normal Self Assessment dates. The quarterly update is a summary of your business income and expenses so far in the year.

Do I still need an accountant with Graft?

That is your call. Graft keeps the digital records and files the quarterly updates, which is the part MTD makes compulsory. Many sole traders will do it themselves; if you have an accountant, Graft keeps your records tidy for them.

What if I already track my jobs on paper or spreadsheets?

Graft replaces the notebook and the spreadsheet with one app. Log the job, snap the receipt, and your MTD digital records build themselves as a by-product of running your business.

Making Tax Digital Software for Sole Traders – Graft

The deadline

864,000 sole traders have been warned.

HMRC has written to 864,000 self-employed people. Since April 2026, earning over £50k self-employed means you legally need software to keep digital records and file quarterly.

Spreadsheets won't cut it. Paper definitely won't. And the longer you leave it, the bigger the pile gets.

Start now and MTD is a two-minute habit. Leave it, and January means digging through nine months of receipts with a deadline on your back.

Download on theApp Store

£200

Per missed quarterly return. Penalty points stack up until they hit a fine.

Submissions every tax year. Four quarterly updates, then a final declaration.

Days until the next quarterly deadline: 7 August 2026.

Does it apply to you?

Three numbers tell you where you stand.

Making Tax Digital for Income Tax means digital records plus a short update to HMRC every quarter, kept and filed through software. The full plain-English detail is in the MTD guide – here's the short version.

/ £50k+

You're in it now

Qualifying income over £50,000 on your 2024-25 return means MTD applies from April 2026. The first quarterly update covers April to July – due 7 August.

/ £30k+

You're next

Over £30,000 and you join from April 2027, with £20,000 planned from 2028. Starting the habit early makes it a non-event.

/ 4×

Report, not pay

Quarterly updates change how you report, not when you pay. Your tax is still paid on the normal Self Assessment dates.

How Graft handles it

From site to submitted.

No separate tax software, no spreadsheet, no double entry. This is the actual app, on an actual site. Work like you already do and the compliance happens underneath.

A tradesperson standing on a building site logging a finished job in the Graft app

/ 01

Log it in the mud

Job done, paid, logged in 30 seconds – standing on site. Every job becomes an MTD-compliant digital record on its own.

Graft's AI receipt scanner turning a B&Q receipt into categorised expense lines

/ 02

Receipts read themselves

Snap it and the AI fills in the date, amount and category. Your expense records build while the receipt is still in your hand.

The Graft Tax & MTD screen showing the four quarterly updates and a deadline warning

/ 03

The quarter files itself

Connect to HMRC once. Each quarter: check the figures, tick the declaration, submit. Deadlines counted down in-app so nothing sneaks up.

What HMRC requires

The rules, covered.

We only claim what's built. Here's exactly where Graft stands against what MTD for Income Tax asks of your software.

MTD requirement	Graft
Digital record keeping for income and expenses	✓ Built in – records created as you log jobs and receipts
Quarterly updates for self-employment income	✓ Filed directly through HMRC's MTD APIs
Digital links (no manual re-keying)	✓ One app end to end – nothing to copy across
HMRC fraud prevention standards	✓ Implemented and recognised by HMRC
End-of-year final declaration	◐ In development for the 2026-27 year end
CIS (Construction Industry Scheme) income	◐ In development – on the roadmap in the open

Straight answers

MTD questions, answered honestly.

Do I have to use software for MTD?

Yes. Once MTD for Income Tax applies to you, HMRC requires digital records kept in software and quarterly updates submitted through software connected to their systems. A spreadsheet on its own no longer meets the rules.

When does it apply to me?

From 6 April 2026 if your qualifying income was over £50,000 on your 2024-25 return. From April 2027 it's over £30,000, and £20,000 is planned from April 2028. Not sure where you stand? The guide breaks it down.

Do I pay tax every quarter now?

No. This is the single most misunderstood part of MTD. Quarterly updates are a report of your income and expenses so far. You still pay your tax on the normal dates.

Do I still need an accountant?

Your call. Graft handles the compulsory part: digital records and quarterly updates. Plenty of sole traders will do it all themselves; if you use an accountant, your records stay tidy for them.

I'm on paper and spreadsheets. How hard is switching?

Graft is designed to replace the notebook, not retrain you. If you can send a text, you can log a job. Most people are set up in the time it takes to drink a brew.

Before the next deadline

Your jobs. Your tax. Done.

Free until 15 September, then £9.99 a month. Set up in the time it takes to drink a brew.