For sole traders
Making Tax Digital for sole traders
If you're self-employed, Making Tax Digital swaps your once-a-year tax return for quarterly updates to HMRC. PennyPort is the plain-English way to keep your books and file them — no accounting jargon, no pricey software.
What sole traders keep track of
Pop in what came in and what went out — PennyPort sorts it into the right boxes for HMRC.
Money in from customers
Type it in or import a spreadsheet from your bank — every payment lands in the right box.
Materials & stock
The goods and supplies you buy to do the work, ready for your tax figures.
Tools & equipment
Claim for the kit you buy with a simple register and capital allowances worked out for you.
Van & car mileage
Log a journey and your allowance is worked out at HMRC's 45p-a-mile rates.
Running costs
Phone, insurance, subscriptions and the other everyday costs of being in business.
Working from home
Run things from home? Claim a simple flat-rate amount based on the hours you put in.
When you'll need to start
Making Tax Digital arrives in stages, based on your combined self-employment and property income:
April 2026
Now liveIncome over £50,000 a year
April 2027
Income over £30,000 a year
April 2028
Income over £20,000 a year
Not in the first wave yet? Start now and it'll be second nature long before your date arrives.
Why PennyPort
The simple way to stay on top of it
A cashbook anyone can use
Built for people who are brilliant at their trade, not at bookkeeping. If you can jot a note, you can use it.
Know your tax all year
Your estimate updates as you go, so you always know roughly what you owe — no January shocks.
A free app for the road
Snap receipts, log mileage and raise invoices from your phone, all synced to your account.
Free phone app on iPhone & Android
Built for HMRC Making Tax Digital
Questions, answered
Do sole traders have to use Making Tax Digital?
If your self-employment income — added to any rental income — goes over the threshold for the year, HMRC will require quarterly updates and digital records. It begins at over £50,000 from April 2026, then £30,000 from April 2027 and £20,000 from April 2028.
I'm not good with numbers — is this really for me?
Yes. Everything is in plain English. You tell PennyPort what came in and what went out, and we handle the tax side and the filing.
Do I have to connect my bank account?
No. There are no bank feeds and no logins to hand over — you type entries in or import a spreadsheet. That keeps your banking private and means no per-connection fees.
Can I claim for working from home?
Yes. If you work from home, you can claim a simple monthly flat rate based on your hours — no measuring rooms or splitting bills.
PennyPort fits other trades too