Question 1

What is Cuppa for?

Accepted Answer

Cuppa helps UK sole traders stay on top of their tax. You record what you earn and spend, and Cuppa shows you what you owe and submits everything to HMRC for you. No spreadsheets, no accountant-speak, no fiddly forms.

Question 2

Who is this for?

Accepted Answer

Cuppa is for self-employed sole traders in the UK. Whether you're a freelancer, tradesperson, consultant, or side-hustler, if you file a Self Assessment tax return for self-employment income, Cuppa is built for you. No accounting background needed.

Question 3

What is Making Tax Digital?

Accepted Answer

Making Tax Digital (MTD) is an HMRC initiative that requires self-employed individuals and landlords to keep digital records of their income and expenses, and submit quarterly updates using MTD-compatible software. The programme replaces the annual Self Assessment tax return with more frequent, digitally-linked reporting. MTD for Income Tax Self Assessment (ITSA) is being rolled out in phases starting from April 2026 for those earning over £50,000. Cuppa handles all the digital record-keeping and quarterly submissions for you automatically.

Question 4

When does Making Tax Digital start?

Accepted Answer

MTD for Income Tax starts in April 2026 for self-employed individuals and landlords with annual gross income over £50,000. Those earning between £30,000 and £50,000 will need to comply from April 2027. HMRC has announced plans to extend the requirement to those earning over £20,000 at a later date. If you're unsure whether you need to sign up, check your total gross income from self-employment for the current tax year.

Question 5

Who needs to use MTD software?

Accepted Answer

You need MTD-compatible software if you are self-employed or a landlord with annual gross income above the current threshold (£50,000 from April 2026, £30,000 from April 2027). This applies to sole traders, freelancers, and individuals with UK property income. You must use software that can maintain digital records and submit quarterly updates directly to HMRC via their APIs. Cuppa is built specifically for sole traders who want a simple, compliant solution without the complexity of traditional accounting software.

Question 6

How much does MTD software cost?

Accepted Answer

MTD software prices vary widely, from free basic tools to £30+ per month for full accounting suites. Many established providers charge £12 to £25 per month for MTD-compliant plans. Cuppa is free to get started, so you can record income and expenses, explore the dashboard, and see your tax position before committing. We believe sole traders shouldn't have to pay a premium just to comply with a government requirement.

Question 7

Can I use Cuppa if I earn under £50,000?

Accepted Answer

Yes, absolutely. While MTD for Income Tax is only mandatory for those earning over £50,000 from April 2026, anyone can voluntarily sign up and use MTD-compatible software. Using Cuppa before the requirement applies to you means you'll already have organised digital records and a clear view of your tax position. It's a good way to build the habit of regular bookkeeping, and you'll be fully prepared when the threshold reaches your income level.

Question 8

Is Cuppa free to use?

Accepted Answer

Yes, Cuppa is free to get started. You can record income and expenses, track your quarterly tax position, and explore the full dashboard at no cost. We want sole traders to be able to try everything before deciding. There are no hidden fees or surprise charges for basic MTD compliance features.

Question 9

Do I need to be an accountant to use Cuppa?

Accepted Answer

Not at all. Cuppa is designed specifically for sole traders with no accounting background. Your expense categories map directly to the fields HMRC expects, so there's no manual translation or accounting knowledge required. You simply record what you earned and what you spent. Cuppa handles the HMRC-compliant formatting, quarterly breakdowns, and submission process for you.

Question 10

How does Cuppa submit to HMRC?

Accepted Answer

Cuppa connects directly to HMRC via their official MTD APIs using secure OAuth 2.0 authentication through Government Gateway. When you're ready to submit a quarterly update, one click sends your data to HMRC with all required fraud prevention headers included automatically. Every submission stores the exact payload sent to HMRC, giving you a complete audit trail. You can view past submissions and see exactly what was reported at any time.

Question 11

Is my financial data safe with Cuppa?

Accepted Answer

Your data security is taken seriously at every level. All data is encrypted in transit with TLS and at rest with AES-256 encryption. Cuppa is hosted on Vercel and Supabase, both SOC 2-compliant providers with automatic backups and redundant infrastructure. Your HMRC tokens are stored server-side with atomic rotation and are never exposed to the browser. We follow HMRC's WEB_APP_VIA_SERVER fraud prevention specification for every API call.

Question 12

Can I switch to Cuppa from another MTD tool?

Accepted Answer

Yes. You can import your existing income and expense records via CSV, and Cuppa will map them to the correct HMRC categories automatically. If you've already submitted quarterly updates with another provider, you can continue from where you left off. Your obligation periods and submission history are synced directly from HMRC, so Cuppa always shows an accurate picture of what's been filed.

Question 13

Does Cuppa support landlord or property income?

Accepted Answer

Cuppa currently supports self-employment income only. If you have other income sources such as UK property, foreign income, or dividends, you will need separate MTD-compatible software for those. You can find a full list of recognised software on the HMRC website at https://www.gov.uk/guidance/find-software-thats-compatible-with-making-tax-digital-for-income-tax. We plan to add support for UK property income in a future update.

Question 14

Does Cuppa handle the Final Declaration?

Accepted Answer

Cuppa handles your quarterly updates to HMRC throughout the tax year, but does not currently support the end-of-year Final Declaration. Once all four quarters are submitted, you will need to complete your Final Declaration through HMRC's online service, your accountant, or other MTD-compatible software. You can export your full income and expense records from Cuppa to use when filing. For a list of software that supports Final Declaration, visit https://www.gov.uk/guidance/find-software-thats-compatible-with-making-tax-digital-for-income-tax.

Modern finance tracking
for sole traders

Why sole traders choose Cuppa

Record keeping
that feels effortless

Submit a quarter
in under 5 minutes

Your workflow,
your choice

Always HMRC-ready,
without the stress

Already use spreadsheets?
You're halfway there

Clients & invoices,
all in one place

HMRC Data Security

End-to-end encryption

Secure cloud hosting

HMRC fraud prevention

OAuth 2.0 authentication

Home office & mileage,
sorted

MTD-Compliant Features for Sole Traders

HMRC categories built in

Live tax estimate

Full audit trail

Quarterly at a glance

MTD-compliant by design

Direct HMRC submissions

Manage your finances
from your AI

Bank feeds,
connected

Cheap as chips.

Free

Pro

Frequently asked questions

Stop worrying about tax.
Start using Cuppa.

Modern finance trackingfor sole traders