In the last couple of years, we’ve witnessed huge changes in the way we work, with the pandemic having transformed how many businesses approach work altogether. Among these changes is the growth in self-employment, with more than three million sole traders now operating in the UK. While it presents exciting opportunities, there are also associated challenges for the self-employed – such as the need to accurately file their own tax returns.

Making Tax Digital (MTD) for Income Tax Self Assessment (ITSA) is set to be introduced from 6 April 2024 and will affect any individual earning over £10,000 gross income each year from self-employment or property.

It means that those paying income tax on their profits will need to start keeping their accounting records electronically and file new quarterly updates, as well as an end of period statement and final declaration.