Following our earlier announcement on launching extended sole trader capabilities in the UK, we are here with another exciting news.
Zoho Books is now HMRC-recognised Making Tax Digital for Income Tax software. Our FREE plan is thoughtfully curated to meet the end-to-end accounting needs of sole traders — including invoicing, expense management, banking, and tax obligations.
Your VAT-ready MTD-compliant accounting software is now ready for Making Tax Digital for Income Tax. Whether you are a sole trader, growing business, or an accounting firm looking to stay compliant with HMRC's requirements, your search for the most affordable MTD-compliant accounting software ends here.
This means you can now send quarterly updates to HMRC directly from Zoho Books to stay MTD-compliant.
Please note that the feature is currently available on request. If you wish to experience the same, kindly reach out to us at support.uk@eu.zohobooks.com.
How can Zoho Books help you prepare for the Making Tax Digital for Income Tax?
As you may know, HMRC's Making Tax Digital for Income Tax requires sole traders with annual revenue of over 50,000 GBP in the 2024-25 tax year to send quarterly updates to HMRC, starting from April 2026.
In light of this, here is how our MTD-ready accounting software can help you manage your income tax obligations.
Start maintaining digital records: Record your incomes and expenses within Zoho Books. Get access to a real-time dashboard to keep tabs on your financials, generate powerful reports, and manage your accounting from anywhere.
Stay connected with HMRC: Connect your Zoho Books account to HMRC and manage your income tax obligations to stay tax-season ready.
Generate and review your quarterly updates: Based on your digital records, Zoho Books will help you access the consolidated income and expenses for the quarter. You can review the summary and generate your quarterly update.
Stress-free quarterly submissions to HMRC: After reviewing your quarterly update, you can finalise and send it directly to HMRC from Zoho Books.
Few points to consider:
- Participating in HMRC's Making Tax Digital for Income Tax initiative is currently voluntary
- Register for HMRC's testing phase before submitting your quarterly updates directly from Zoho Books
- Apply for exemption if you meet the criteria prescribed by HMRC
Why choose Zoho Books for your MTD transition?
Available from the free plan, Zoho Books helps both VAT and non-VAT registered sole traders to get prepared and ensure a seamless transition.
While our comprehensive software is packed with features for growing businesses with diverse needs, Zoho Books now offers a curated version of the free plan to ensure a focused and streamlined experience for you.
Sole traders like you choose Zoho Books for its:
- Ease of use
- Accurate bookkeeping
- Affordability
- Privacy
- Automation and customization capabilities
Moreover, you can also include your accountant in Zoho Books to manage your accounting and tax obligations. This means your accountant can now file Income Tax and VAT returns to HMRC on your behalf.
What's more in the free plan for sole traders?
Apart from MTD for Income Tax, sole traders in the free plan will now get access to:
- Self assessment summary report (SA103F & SA103S)
- MTD for VAT
- Automatic bank feed
- Self-service customer portal
Please visit our pricing page to know more about what's included in the free plan.
Next Steps
If you wish to try out Making Tax Digital for Income Tax, please reach out to us at support.uk@eu.zohobooks.com.
Please refer our help documentation to learn more about sending your quarterly updates to HMRC.
Sign up for Zoho Books today — it's free!
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