From April 2026, HMRC’s new Making Tax Digital for Income Tax (MTD ITSA) rules will change how sole traders report their income.
Our dedicated MTD Sole Trader packages make compliance simple — combining bookkeeping, quarterly updates, and year-end submissions in one fixed monthly plan.
Making Tax Digital for Income Tax (MTD ITSA): Key Facts 🔍
What It Is: MTD ITSA is replacing the traditional annual Self Assessment, requiring a switch to an ongoing accountancy service.
Who It Affects: Sole Traders and landlords with Qualifying Income (total income before expenses) exceeding:
£50,000 from April 2026.
£30,000 from April 2027.
£20,000 from April 2028.
What It Requires: You must keep digital records (e.g., using accounting software) and submit four quarterly updates to HMRC detailing your income and expenses.
Complete setup of your cloud accounting software, ensuring you meet HMRC's mandatory digital record-keeping requirements from day one.
Monthly Bookkeeping
We assist with your essential bookkeeping tasks each month, keeping your records accurate and ready for quarterly filing.
Quarterly Updates
We use your digital records to prepare and submit the mandatory four quarterly updates of your income and expenses to HMRC.
MTD Final Declaration & Accounts
We handle the mandatory HMRC End of Year Declaration, including all final accounting adjustments. Full Profit & Loss and Balance Sheet included.
Our MTD Sole Trader Packages
Our MTD Sole Trader Packages are specifically designed to meet all of your MTD ITSA requirements.
All of your compliance needs throughout the year are included - in one monthly price.
Understanding Transaction Count
Consolidated payments count as a single transaction, meaning 'Transactions' more aligns with 'Bank Entries'.
For example, if you process 100 card sales but receive a single, daily total settlement in your bank account, this counts as 1 transaction for your package. Read More Examples
Understanding Your Transaction Count: Marketplaces vs. Bank Entries
We count the single total amount that appears on your bank statement, not every single sale, refund, or fee on the marketplace's own statement. This approach drastically reduces your costs.
Your Activity (Marketplace/Platform)
Counts as
You make 250 sales on eBay or Etsy over a two-week period. Your bank account shows a single bi-weekly deposit from the marketplace (e.g., eBay, Etsy, Amazon).
1 Transaction
You process 100 credit card payments for your shop, settled daily by a provider like Stripe or Square. Your bank account shows 30 daily deposits (one for each day of the month).
30 Transactions
You process 100 cash sales through your till and provide a Z Total for each day You deposit the entire day's takings in one go, and give 1 daily figure from your Z Total
1 Transaction
You pay 3 monthly utility bills (electric, internet, water) via separate Direct Debits. Your bank account shows 3 separate withdrawals.
3 Transactions
You withdraw cash 5 times from an ATM for petty cash expenses. Your bank account shows 5 separate withdrawals.
5 Transactions
In short: A single lump sum payment received in your bank account—which includes many sales and has already had fees/VAT deducted—is treated as one consolidated transaction for your package.
Our MTD Sole Trader Package is designed for simpler Self Employments. If you have a larger number of transactions, or require complexities such as a purchase ledger, you may be more suited to our Standard Packages.
Get in Touch
Interested in our MTD ITSA Packages, or want some more information?
Compare our MTD Sole Trader Packages
Feature
Essentials
MTD Flex
Suitable for MTD ITSA Sole Traders
✅
✅
Bookkeeping Transactions Allowance (per month)
20
20+
Ideal for Consolidated Monthly Statements (e.g., eBay)
✅
❌
Quarterly MTD VAT Returns Available
❌
✅
AAT Licensed Accountant Support
✅
✅
Quarterly Updates Filing and Annual Self Assessment
✅
✅
Important: All MTD Sole Trader packages require a dedicated bank account (or a separate personal account used strictly for business only). This allows us to connect the bank feed to our software for automated import, ensuring efficient bookkeeping and an accurate transaction count.
FAQs on MTD ITSA Packages
Why Choose Our MTD Sole Trader Package?
Our MTD Sole Trader Package is designed to help you transition smoothly to the new Making Tax Digital (MTD) requirements. It includes everything you need to stay compliant with HMRC, while also providing ongoing support for your accounting needs.
Fully MTD-Compliant – Stay ahead of HMRC’s digital tax requirements.
Quarterly Tax Submissions – No more last-minute tax stress.
Expert Support – Guidance from experienced accountants.
Cloud-Based Accounting – Access your financial data anytime, anywhere
What’s Included in Our Package?
Quarterly Tax Filing – Submit accurate reports to HMRC.
Bookkeeping Support – Keep your records organised.
