A survey by Coconut shows that most sole traders are not ready for MTD for Income Tax.
20% have not heard of MTD and a further 60% do not feel prepared.
From April 2024, sole traders and landlords earning more than £10k a year will need to submit quarterly accounts using software, followed by a 5th filing to confirm the 4 quarters have been filed and then a tax return! This will need to be completed using compatible software and you will not be able to log into HMRC to complete the tax return as you do now.
The 4 quarters will be April, July, October and January.
As well as the quarterly accounts starting in April 24, the tax return for the previous tax year 23/24 will also need to be filed in this same year!
My advice would be to get organised early. Look at software and start using it by April 23 at the latest so you are comfortable using it.
Open a separate business bank account (most software will have bank feeds and it will save time sorting personal and business expenses)
Get an accountant to help, but don’t leave it until April 2024 as we are likely to be too busy!