Keep digital records
Record business income and expenses in compatible digital software rather than relying on paper-only records.
Making Tax Digital
Digital bookkeeping for MTD preparation. £0 to get started.
Keep digital income and expense records, invoice customers and organise your books in one place. Cherry Money gives sole traders the Sole Trader Free starting point for the move to Making Tax Digital.
- Sole Trader Free starting point
- Digital bookkeeping records
- Plan details stay synced with Admin
Direct MTD for Income Tax submissions are in development. Cherry Money does not yet claim HMRC recognition for MTD for Income Tax. We will only describe direct submission as available when the production integration is enabled.
2026–27 quarterly update deadlinesStandard update periods · confirm your own dates with HMRC
7 AugUpdate 1 deadline
7 NovUpdate 2 deadline
7 FebUpdate 3 deadline
7 MayUpdate 4 deadline
The essentials
What does Making Tax Digital change?
MTD for Income Tax moves qualifying sole traders and landlords towards ongoing digital records, quarterly updates and a digital tax-return workflow instead of relying on a once-a-year bookkeeping scramble.
Send quarterly updates
Your software totals digital records for each business and sends cumulative income and expense updates to HMRC.
Submit the tax return
You still finalise the tax year and submit your tax return. The Self Assessment payment deadline remains 31 January.
Who needs MTD?
Check the threshold that applies to you.
The rules depend on your qualifying income and circumstances. These headline thresholds are based on current HMRC guidance.
You generally need to use MTD for Income Tax if:
- You are an individual registered for Self Assessment.
- You receive income from self-employment, property, or both.
- Your qualifying income is above the threshold for the relevant tax year.
From 6 April 2026> £50kQualifying income threshold for the 2026–27 tax year.
From 6 April 2027> £30kThreshold reduces for the following tax year.
From 6 April 2028> £20kCurrent published threshold from April 2028.
Source: GOV.UK Making Tax Digital for Income Tax guidance. Exemptions and special circumstances can apply.
Digital tax records
Sole Trader Free
Prepare your digital records with the current Sole Trader Free plan.
Start keeping your business records digitally now. The current Cherry Money starting plan is built to help sole traders move away from spreadsheets, paper and last-minute admin.
£0to get started
Choose Sole Trader Free
✓Digital income & expense recordsKeep day-to-day bookkeeping information in a structured digital workspace.
✓Up to 10 invoices per monthCreate a digital trail from customer invoice to your accounting records.
✓30-day cash-flow viewSee near-term financial pressure while keeping records up to date.
✓Ask Cherry guidanceGet plain-English help with invoices, bookkeeping, VAT and finance questions.
✓Expense & receipt recordsCapture the evidence behind business spending and keep it alongside your books.
✓A path to fuller accountingUpgrade later if you need more automation, bank reconciliation, VAT or advanced reporting.
Everything around MTD
Your tax records work better when everyday finance is connected.
QuickBooks puts MTD beside invoices, expenses, cash flow and AI. Cherry Money should do the same: make MTD part of the daily finance workflow instead of a separate deadline-only tool.
£0 starting pointSole Trader Free for sole-trader digital bookkeeping.
Up to 10 invoices per monthFrom the current Admin plan configuration.
Ask CherryPlain-English finance guidance in the workspace.
VAT preparation workflowPrepare VAT figures while direct HMRC submission remains unavailable pending production approval.
Create the record at source.
Start with the customer invoice instead of rebuilding sales information at quarter-end.
- Up to 10 invoices per month
- Quotes and invoice records
Keep spending evidence organised.
Record expenses and supporting information while the transaction is still fresh.
- Digital expense records
- Receipt and purchase evidence
Know what the numbers mean now.
Use near-term cash-flow visibility alongside the records you are already keeping for tax.
- 30-day cash-flow view
- Longer forecasting on eligible plans
Reduce repeated data entry.
Where enabled on your plan, connect bank activity and reconcile it against the accounting workspace.
- Bank connection workflows
- Transaction reconciliation
Prepare VAT records for review.
Cherry Money can prepare VAT Boxes 1–9. Direct retrieval from, and submission to, HMRC remains unavailable until production access is granted and enabled.
- Trace VAT back to source records
- Submitted-period protection
Get guidance without leaving the books.
Ask plain-English questions about invoices, VAT, cash flow and accounting while keeping final review in your hands.
- Finance guidance
- Guided invoice, expense and VAT workflows
AI where it helps
Automation for the admin. Review before anything important.
Cherry's approach is assisted rather than autonomous: use AI to understand and organise finance work, while tax-sensitive actions remain explicit and reviewable.
Ask CherryExplain what makes up this VAT box.
Ask CherryHelp me create this expense correctly.
Ask CherryWhat changed in my cash flow?
Need help deciding where to start?
Compare plans or contact Cherry Money before moving your bookkeeping.
How Cherry helps
Record. Organise. Review. Then submit.
We are building the MTD journey in stages so the bookkeeping foundation is useful now, while direct MTD for Income Tax submission remains clearly labelled until it is production-ready.
Record
Add invoices, income, expenses and supporting records digitally.
Organise
Keep transactions and bookkeeping evidence structured in one place.
Review
Check what changed before the relevant reporting deadline arrives.
Submit
Direct MTD for Income Tax updates and return submission will be enabled only after the production integration is ready.
What about MTD for VAT?
Preparation only
Cherry Money can prepare VAT Boxes 1–9 for review. Direct HMRC obligation retrieval and VAT-return submission remain unavailable until production access is granted and enabled.
MTD FAQs
Clear answers before you sign up.
Is Cherry Money HMRC-recognised for MTD for Income Tax?
No. Cherry Money supports digital record keeping for Making Tax Digital preparation, while direct MTD Income Tax submission is in development and unavailable.
What is included in the current starting plan?
Cherry Money’s current starting plan is Sole Trader Free at £0 with up to 10 invoices per month, a 30-day cash-flow view and the features enabled for that plan in Admin. Direct MTD Income Tax submission is not yet included because that production integration is still being built.
When are quarterly MTD updates due?
For standard update periods, HMRC currently lists deadlines of 7 August, 7 November, 7 February and 7 May. Updates are cumulative from the start of the tax year. See HMRC's current quarterly-update guidance for the rules that apply to you.
Does MTD replace my annual tax return?
No. Quarterly updates are summaries of digital records, not tax returns. You still need to finalise and submit the tax return after the tax year and pay tax due by the normal deadline.
Can Cherry Money submit MTD VAT returns now?
No. Cherry Money can prepare VAT Boxes 1–9 for review, but direct HMRC obligation retrieval and VAT-return submission remain unavailable until production access is granted and enabled.
Start the digital record-keeping part today with Sole Trader Free.
Get your invoices, income and expenses into one system now. Direct MTD submission will only be offered after HMRC grants production access and the service is enabled.