Do I need to sign up for Making Tax Digital?

For your craft business, you’ll most likely need to ensure that you are registered for self-assessment and complete a self-assessment tax return by the deadlines. You can read more in our guide to who needs to file a tax return. 

Making Tax Digital (MTD) for Income Tax applies from April 2026 for sole traders with qualifying income above £50,000, and April 2027 for sole traders with qualifying income above £30,000. 

 

When considering qualifying income, this does not include employment income, as tax is deducted from employment income at source through the PAYE scheme. 

Therefore, based on your income you won’t need to comply with Making Tax Digital. However, there are advantages to digitising your records, including efficiencies. 

The Autumn Budget mentioned that MTD will become compulsory for sole traders and landlords with income above £20,000 during this Parliament but no timescale has been announced. It’s important to keep an eye on your turnover and any Making Tax Digital updates to ensure you know what you need to do and when. 

 

First published 3 Jan 2025

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This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.

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