Why sole traders need Making Tax Digital (MTD) software
Since April 2022, all VAT-registered businesses have been required to use MTD-compatible software for Income Tax. From April 2026, sole traders earning over £50,000 will also need to follow MTD rules for Income Tax. Hnry is fully MTD compliant – and because we’re both your accountant and your software in one, you can relax knowing we take care of it all for you.
Taxes, expenses, and filing - all automated
Every time you get paid, Hnry automatically calculates your tax, and pays it to HMRC. This also means we have all the right info to file your MTD-compliant VAT returns and Income Tax Self Assessments (ITSA) - which we do for you, as your accountant.
We’re MTD-compliant, which means you are too
Most MTD-compliant software sets you up to make sure you’re following the right rules - but with Hnry, it’s all done for you. We'll automatically file your MTD VAT and MTD Income Tax returns whenever they're due.
Safe as houses
Hnry keeps your digital records safe and secure within the Hnry App. We ensure your data is protected, and kept for 7 years (as required by HMRC).
How Hnry is Making Tax Digital compliant
Tax automation
The Hnry Account
Get your self-employed income paid into your Hnry Account, and we'll automatically calculate, deduct, and pay the right amount of tax whenever you get paid. Even better — Hnry files all your returns and sends quarterly updates of your income and expenses directly to HMRC, so you’re fully compliant with Making Tax Digital (MTD). The rest of your money goes wherever you want it to, straight away. No reconciliations, no bank feeds. Just control of your money.
The Hnry Business Mastercard
Pay for your business expenses from your Hnry Account, with your Hnry Business Mastercard. We'll automatically raise and review the expenses for you, lowering your tax rate to put more money in your pocket, sooner.
... you also get a world-class
Accounting service
Tax filings
Hnry makes sure you’re fully compliant with Making Tax Digital (MTD) by filing your returns through MTD-compatible software, as required by HMRC. That means your VAT and Income Tax Self Assessment returns are not only submitted on time, but also in the correct digital format. Hnry calculates and files everything for you automatically, so you stay compliant with MTD rules while focusing on running your business.
Expense management
We review your expenses as you go, so you keep more of your hard earned cash. Plus, we'll help you learn what you could claim to minimise your taxable income.
Support from sole trader tax experts
We're sole trader tax experts, so we know the ins and outs of your industry. We'll help you navigate the complexities of your tax and financial admin, so you can focus on what you do best.
Unlimited features
A suite of tools at no additional cost to you.
Expenses
Your expense admin is quick and simple - raise them in-app, we'll take it from there and keep your cash flowing.
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Invoices and quotes
Send unlimited invoices and quotes from the Hnry App. Customise them, add branding, schedule them in advance, and we'll take care of chasing late payers.
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Allocations
Send earnings to savings, pensions, and investments, or whatever - you have total control over your money.
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Reports
Our reports provide insights for your business, and are accepted by banks and brokers for mortgages and loans.
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