How to Prepare for Self Assessment in the New Tax Year Under Making Tax Digital

• The new tax year starts on 6 April in the UK
• Self Assessment still applies under Making Tax Digital
• Sole traders must prepare early to avoid disruption
• Quarterly reporting does not replace your annual tax return
• Structure at the start of the tax year reduces stress later ☺️

How to Prepare for Self Assessment in the New Tax Year Under Making Tax Digital

The new tax year begins on 6 April in the UK.

For sole traders, this is not just a date on the calendar. It is the starting point for your next Self Assessment cycle and your preparation for Making Tax Digital for Income Tax.

If you want this year to feel different from the last, preparation needs to begin now.

Not in January.
Not when deadlines feel close.
Now.

What Changes in the New Tax Year for Sole Traders?

From 6 April, you begin recording income and expenses for a brand new Self Assessment year.

Under Making Tax Digital for Income Tax UK, eligible sole traders will eventually be required to:

• Keep digital records
• Submit quarterly updates to HMRC
• Complete an End of Period Statement
• Submit a final declaration

However, Making Tax Digital does not remove Self Assessment.

It changes how information is submitted throughout the year.

Self Assessment remains the annual process.
Making Tax Digital changes the reporting structure.

Does Making Tax Digital Replace Self Assessment?

No.

Making Tax Digital for Income Tax works alongside Self Assessment.

You will still have an annual tax position to finalise.

Quarterly submissions are updates.
Self Assessment is still the annual reconciliation.

Preparation now avoids confusion later.

Why the Start of the Tax Year Matters

The first few weeks of a tax year set the tone.

If bookkeeping is inconsistent in April, it is often inconsistent in May.
If it slips in May, it becomes reactive by September.
By January, it feels overwhelming.

The new tax year is your clean slate.

Especially during Easter holidays, when routine is disrupted, having systems in place protects your time and energy 😊

How Sole Traders Should Prepare for Self Assessment Under MTD

Here is the practical approach.

1. Confirm Whether You Will Be Affected by Making Tax Digital

If your gross income exceeds the threshold when MTD applies, you will need digital record keeping and quarterly submissions.

Even if you are below the threshold now, digital systems are becoming standard.

Preparation is sensible either way.

2. Set Up Digital Bookkeeping Properly

Making Tax Digital for Income Tax requires compatible software.

Digital bookkeeping from 6 April ensures:

• Accurate quarterly updates
• Reduced year end stress
• Clear visibility of your tax position

3. Understand the Difference Between Quarterly Updates and Self Assessment

Quarterly submissions provide HMRC with summaries.

They are not tax bills.
They are not final calculations.

Your Self Assessment process still determines your final tax position.

Clarity prevents panic.

4. Decide Your Level of Support Early

Waiting until the first quarterly deadline creates unnecessary pressure.

At BarrettStacey Accounting, we support sole traders under 2 clear options:

Sole Trader Accountant | Foundation

Making Tax Digital submissions, Self Assessment submission.

This package is designed for Sole Traders who manage their own Bookkeeping but want compliant submission support.

Sole Trader Accountant | Structure

Bookkeeping, Making Tax Digital submissions, Self Assessment submission.

This package is designed for Sole Traders who want everything handled in a structured, organised way. Leaving the Bookkeeping and Compliance to us, whilst they focus on their business.

No long term contracts.
Simple monthly pricing.
Clear scope of support.

Starting in April allows onboarding before deadlines build.

Why April Is the Smartest Time to Act

By September, conversations feel urgent.
By January, they feel stressful.

April is calm.

The new tax year has just begun.
Records are minimal.
Systems are easier to establish.

Preparation now means:

Confident compliance.
Clear systems.
No last minute stress.