Self-Assessment, MTD & Sole Traders: What’s the Best That Can Happen?

(Fresh from Accountex 2025!)

This week I headed to Accountex – the big event in the accounting world where HMRC, software providers and advisors all share the latest updates. Unsurprisingly, one topic was on everyone’s lips: Making Tax Digital (MTD) for sole traders and how it links with the Self Assessment deadline.

The Self Assessment deadline isn’t going anywhere

If you’re a sole trader, the key date remains 31

January 2026 for filing your 2024/25 tax return online and paying any tax due. Nothing new there, but with MTD looming HMRC are already nudging businesses to get used to digital record-keeping sooner rather than later.

What’s new with MTD?

From April 2026, many sole traders will need to keep digital records and send quarterly updates to HMRC. That means:

• No more saving it all up for January!

• You’ll need MTD compatible software (not spreadsheets unless they link properly).

• You’ll send smaller, regular updates instead of one big yearly return.

At Accountex, the message was clear, start preparing early. Don’t wait until HMRC tells you “you’re in.” By then it could feel overwhelming.

Why this matters now

Even though MTD doesn’t kick in until April 2026, the way you keep records this year can make life much easier:

• Using cloud software (like Xero) now means you’ll be MTD ready without stress later.

• You’ll have a clearer picture of profits and tax due throughout the year with no more nasty January surprises.

• If HMRC does expand the scope (and there’s chatter they might!), you’ll already be ahead of the curve.

A shift in mindset

One of the highlights of the show for me was hearing Ashley Leeds, public speaker and coach, reminding everyone with his brilliant t-shirt slogan:

“What’s the best that can happen?”

It really hit home. Yes, MTD might feel daunting at first, but looked at differently, it’s an opportunity:

• Up-to-date accounts throughout the year

• Fewer surprises in January

• Clearer insight into profits and tax planning

Instead of dreading change, it’s worth asking: what’s the best that can happen for your business if you embrace it?

My advice after Accountex

• Don’t panic about MTD, you’ve got time, but use it wisely.

• Stick to the Self Assessment deadline, it’s still non-negotiable.

• Go digital early, the sooner you start using software, the smoother MTD will be.

If you’re a sole trader and not sure where to begin, I’m here to help. Whether it’s choosing software, setting up digital record-keeping, or just making sure you’re ready for 31 January, I’ll make the transition as painless as possible.

Take care,

Emma