✓ HMRC-recognised software • ✓ Includes Sage Copilot AI • ✓ Free mobile app
CHANGING
Making Tax Digital is Coming – Are You Ready?
From April 2026, MTD for Income Tax will transform how self-employed individuals and landlords manage their tax. It’s the biggest change to Income Tax since Self Assessment launched 30 years ago.
📅 When Does MTD Affect You?
April 2026: Turnover over £50,000
April 2027: Turnover over £30,000
April 2028: Turnover over £20,000
❌ Quarterly Updates Required
You’ll need to send quarterly updates to HMRC using recognised software. These aren’t tax returns – just simple summaries of how your business is doing.
⚠️ HMRC Won’t Sign You Up
HMRC won’t automatically sign you up, so it’s important to choose your software and get started in time. Don’t wait until the deadline!
✓ Good News: Payment Deadlines Stay the Same
You won’t pay four tax bills a year – the deadline for paying your tax will still be 31 January. The quarterly updates make the process much simpler and help you avoid surprises.
Why MTD Will Help Your Business
Reduce Errors & Costs
- Reduce the chance of making errors in your returns
- Save time and money on corrections later
- Automated calculations mean fewer mistakes
- Digital records are more accurate than paper
Better Business Planning
- Up-to-date, accurate information at your fingertips
- No more scrambling for lost receipts
- Forecast your predicted tax bill to avoid surprises
- Make sure you pay the right amount of tax
Get Ahead Early with Sage
- Build confidence before MTD becomes mandatory
- Learn at your own pace
- HMRC-recognised software ready now
- Includes Sage Copilot AI to save time
✓ Your MTD Readiness Checklist
Based on official HMRC guidance
Choose Your Sage Plan – All MTD Ready
All Sage plans are HMRC-recognised for Making Tax Digital. Pick the one that fits your business needs.
Accounting Individual Free
For non-VAT registered sole traders
No hidden charges
- ✓ Manage income and expenses
- ✓ Self-employed income tax summary
- ✓ Enter and record receipts manually
- ✓ Free mobile app
Accounting Individual
For sole traders managing self assessment
90% off for 6 months – Save £37.80
- ✓ Everything in Free, plus:
- ✓ Manage sales invoices
- ✓ Snap and scan receipt records
- ✓ Auto-categorise expenses
- ✓ Connect multiple bank accounts
- ✓ 10GB document storage
Accounting Start
For VAT-registered sole traders & small businesses
90% off for 6 months – Save £97.20
- ✓ Sage Copilot AI assistant included
- ✓ Unlimited sales invoices
- ✓ Track what you’re owed
- ✓ Reconcile transactions
- ✓ Calculate and submit VAT
- ✓ Making Tax Digital ready
- ✓ Payroll included
- ✓ Carbon footprint tracking
*All prices exclude 20% VAT. 90% discount applies for first 6 months, then standard monthly rate.
How Sage Compares to Alternatives
All are HMRC-recognised, but Sage offers the best value and features for MTD
| Feature | Sage Start BEST VALUE | QuickBooks | Xero | FreeAgent |
|---|---|---|---|---|
| HMRC Recognised MTD | ✓ | ✓ | ✓ | ✓ |
| Starting Price | £1.80/mo* 🏆 | £14/mo | £15/mo | £19/mo |
| AI Assistant Included | ✓ (Sage Copilot) 🏆 | Extra cost | Not available | Not available |
| Free Plan Available | ✓ 🏆 | 30-day trial only | 30-day trial only | 30-day trial only |
| Payroll Included | ✓ 🏆 | Extra cost | Extra cost | ✓ |
| VAT Submission | ✓ | ✓ | ✓ | ✓ |
| Receipt Scanning | ✓ | ✓ | ✓ (Limited) | ✓ |
| Bank Connections | Multiple | Multiple | Multiple | Limited |
| UK Support | Webchat & Community 🏆 | Limited hours | Limited hours | Email only |
| Company Heritage | 40+ years UK focus 🏆 | US-based | NZ-based | UK-based (10 years) |
| Mobile App | ✓ Free | ✓ | ✓ | ✓ |
💡 Why Sage Wins for MTD
- 90% off makes it the most affordable – £1.80/month beats all competitors
- Sage Copilot AI included – competitors charge extra or don’t offer it
- True free plan available – not just a 30-day trial
- Payroll built-in – QuickBooks and Xero charge £6-10/month extra
- 40+ years UK expertise – understands UK tax better than US/NZ competitors
- Start for free, upgrade when ready – flexible growth path
Common Questions About Making Tax Digital
What is Making Tax Digital for Income Tax?
It’s the biggest change to Income Tax since Self Assessment launched 30 years ago. You’ll use recognised software to keep digital records and send quarterly updates to HMRC. These updates aren’t tax returns – just simple summaries of your income and expenses in four smaller chunks.
When do I need to start using MTD?
It depends on your turnover: April 2026 if over £50,000; April 2027 if over £30,000; April 2028 if over £20,000. Your turnover is calculated from self-employment and property income for the relevant tax year.
Will I pay tax four times a year?
No! You won’t pay four tax bills a year. The deadline for paying your tax will still be 31 January. The quarterly updates just make the process simpler and help you forecast your tax bill to avoid surprises.
Will HMRC sign me up automatically?
No, HMRC won’t sign you up automatically, so it’s important to choose your MTD software and get started in time. You can get ahead by starting early with Sage – building confidence before it becomes mandatory.
Is Sage recognised by HMRC for MTD?
Yes! Sage Accounting is official HMRC-recognised software that’s ready for MTD now. You can start keeping digital records today and be fully prepared when your MTD deadline arrives.
What if I have an accountant or tax agent?
Great! Make sure your accountant or agent is prepared and can access MTD-compatible software. Sage makes it easy to collaborate – you can share access so they can help manage your records and submissions.
Get MTD-Ready with Sage Today
Don’t wait until the April 2026 deadline
⏰ Limited Time Offer Ends In:
Only £1.80/month for 6 months
(normally £18/month – Save £97.20)
Includes Sage Copilot AI assistant
✓ HMRC-recognised MTD software
✓ Free mobile app included
✓ Digital record-keeping & quarterly submissions
Join thousands of UK sole traders, landlords, and small businesses