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Making Tax Digital,
made simple with Cuppa

Making Tax Digital is here, and it changes how sole traders report to HMRC. Cuppa is the simple, HMRC-recognised way to keep digital records, track your tax, and submit every quarter in a couple of clicks. No spreadsheets, no stress.

HMRC recognised
Free to start
2-minute setup

No credit card required

£0

To stay compliant

Everything MTD requires is free. AI-powered extras coming soon.

1 click

To submit to HMRC

Quarterly updates filed directly, fraud prevention headers included.

2 mins

To get set up

Connect to HMRC and start tracking in the time it takes to brew up.

The basics

What is Making Tax Digital?

Making Tax Digital is the government's programme to move tax reporting into software. For Income Tax, it replaces the single annual Self Assessment return with three simple habits.

Digital records

You must keep records of your business income and expenses in software, not on paper. Each transaction is recorded digitally, close to the time it happens.

Quarterly updates

Every three months, your software sends HMRC a summary of your income and expenses for the tax year so far. No forms to fill in, the totals come straight from your records.

A final tax return

After the tax year ends, you finalise your figures, claim reliefs and allowances, and confirm your total income. This replaces the old Self Assessment return.

Who and when

Who needs to follow MTD, and from when

MTD for Income Tax applies to sole traders and landlords registered for Self Assessment. It is being phased in based on your qualifying income, which is your gross income from self-employment and UK property before expenses.

Now in effect
£50k+

From April 2026

Now in effect. If your qualifying income for the 2024 to 2025 tax year was over £50,000, you must follow MTD rules.

£30k+

From April 2027

If your qualifying income for the 2025 to 2026 tax year is over £30,000, MTD applies to you from 6 April 2027.

£20k+

From April 2028

If your qualifying income for the 2026 to 2027 tax year is over £20,000, MTD applies to you from 6 April 2028.

What counts as qualifying income?

Qualifying income is your gross income (before expenses) from self-employment and/or UK property. It does not include PAYE employment income, partnership profits, dividends, or pensions. Some people are exempt, for example if they are digitally excluded, and anyone under the threshold can join voluntarily.

Try the free eligibility checker
How it works

Your year under MTD

Four short check-ins during the year, one final return after it ends. Here is the full cycle.

1

Sign up and connect to HMRC

Choose MTD-compatible software and link it to your Government Gateway account. Cuppa connects securely in a couple of clicks and syncs your obligations directly from HMRC.

2

Keep digital records as you go

Record income and expenses as they happen. Categories in Cuppa map directly to the fields HMRC expects, so there is no translation or re-keying later.

3

Send quarterly updates

Each update covers the tax year so far, not just the last three months. Review your totals, press submit, and Cuppa files it with HMRC and stores the receipt.

4

Finalise your year

After 5 April, finalise your figures, add any other income, and submit your tax return. Because your records are already digital, year end is a review, not a scramble.

Quarterly update deadlines

Standard periods follow the tax year. Each update is cumulative, covering everything from 6 April to the end of the quarter, and is due by the 7th of the following month.

Quarter 1

6 April to 5 July

Due by 7 August

Quarter 2

6 April to 5 October

Due by 7 November

Quarter 3

6 April to 5 January

Due by 7 February

Quarter 4

6 April to 5 April

Due by 7 May

Prefer calendar quarters starting 1 April? You can elect to use those instead. The deadlines stay the same.

Recognised by HMRC

How Cuppa keeps you compliant

Cuppa is HMRC-recognised MTD software built specifically for sole traders. Everything the rules require is handled for you, and everything you need to comply is free.

One-click HMRC submissions

Quarterly updates go straight to HMRC through their official APIs, with every required fraud prevention header included automatically.

HMRC-aligned categories

Record what you earned and spent in plain English. Cuppa maps everything to the exact fields HMRC expects behind the scenes.

Live tax estimates

See your estimated income tax and National Insurance update in real time, so quarterly deadlines never come with surprises.

A full audit trail

Every submission stores the exact payload sent to HMRC plus the receipt. Amendments link back to what they replace.

Import and export freely

Bring records in from spreadsheets or other software via CSV, and export everything whenever you want. Your data stays yours.

Fix mistakes easily

Updates are cumulative, so if you spot an error you simply correct the record and your next submission puts it right.

Submitting to HMRC is completely free

Every quarterly update you send to HMRC through Cuppa is free, forever. Digital record keeping, unlimited transactions, and direct submissions are all included at no cost. You should not have to pay a premium just to meet a government requirement.

Simple, honest pricing

Free forever.
AI when you want it.

Every core feature is free, including submitting quarterly updates to HMRC. Add AI features when you want to save time.

Free

Everything you need to run your books.

£0/forever

Submit directly to HMRC. No add-ons, no limits.

Every quarterly update, every amendment, free, forever.

And everything else you need

Compliance

  • Full MTD compliance
  • Quarterly tracker
  • Live tax estimate
  • Tax deadlines
  • Accountant ready exports
  • Full audit trail

Bookkeeping

  • Unlimited income & expenses
  • Unlimited invoices & clients
  • Mileage & home office
  • Reports and tax estimate
  • Multi-currency

Data & import

  • CSV import from bank
  • Scan documents
  • 1 attachment per transaction
Get started free

No credit card required.

Pro

Make life easier with AI.

Coming soon

Everything in Free, plus

  • Smart AI categorisation
  • Extract data from receipt photos
  • Add transactions from ChatGPT or Claude
  • Unlimited document attachments
  • Priority customer support
Coming soon

Pro sign-ups aren't open yet. We'll let you know as soon as it's ready.

Making Tax Digital FAQs

The questions sole traders ask most about the MTD rules.

For the official guidance, see Making Tax Digital for Income Tax on GOV.UK.

Ready for
Making Tax Digital?

Join sole traders already submitting to HMRC with Cuppa. Free to start, no credit card required, set up in under two minutes.

HMRC recognised
Free to start
2-minute setup