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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.
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.
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.
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.
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.
Making Tax Digital (MTD) is a UK government initiative that’s replacing the old Self Assessment system. Instead of just filing one tax return a year, self-employed people will need to keep digital records, send quarterly updates, and make a final year-end declaration — all through MTD-compliant software like Hnry.
MTD is designed to make tax easier, faster and more accurate. By keeping everything digital, you’ll reduce mistakes, get a clearer view of your taxes throughout the year, and stay on top of what you owe. With Hnry, you also save time on admin — we handle all the calculations, payments, and filings for you automatically, so you can focus on earning, not tax paperwork.
MTD is being phased in based on income:
From 6 April 2026: those with combined gross income from self-employment and property
exceeding £50,000.
From 6 April 2027: those over £30,000.
From 6 April 2028: those over £20,000.
HMRC looks at your income from two tax years earlier to decide if you’re included.
Some people don’t need to comply with MTD. This includes those who can’t use digital tools because of age, disability, location, or religious reasons. Certain groups are also exempt, like trusts, estates, partnerships, foster carers, and those receiving specific allowances (such as Blind Person’s or Married Couple’s Allowance).
Most MTD software just helps you file your taxes. Hnry does all of it for you. Every time you’re paid, we automatically calculate, deduct and pay your taxes (including VAT), and file your returns whenever they’re due. You also get unlimited support from our team of real accountants — at no extra cost. Plus, Hnry comes with built-in tools like invoicing, expense capture, and reporting. Instead of paying monthly subscriptions, you’re charged a simple 1% + VAT of your income (capped at £600 + VAT per tax year). That way, you only pay when you’re earning.
Yes. Hnry is 100% MTD-compliant. We keep your records digitally, automatically handle all your taxes, send quarterly updates of your income and expenses to HMRC, and file your returns on time — so you’re always sorted without having to lift a finger.
Absolutely. You can join Hnry at any point in the tax year, and we’ll help move your earnings history and VAT across seamlessly.
With Hnry, you’re never on your own. You get unlimited access to our team of expert accountants, who know HMRC rules inside out and are always here to help with your questions.
Ready to get MTD compliant with Hnry?
Let us sort your taxes, so you can focus on what you do best
