Making Tax Digital for Income Tax - MTD ITSA
What is MTD ITSA?
If you currently use an annual Self Assessment service you may need to make a change.
Making Tax Digital for Income Tax means you will need to switch to an ongoing accountancy service, rather than the current once-a-year one - in order to fulfil the requirements: use software, and submit quarterly returns.
To comply, you’ll be required to submit quarterly returns—that’s four updates every three months—to HMRC detailing your income and expenses.
When does MTD ITSA Start?
Making Tax Digital (MTD) for Income Tax is being introduced in a staggered manner:
- From April 2026, income exceeding £50,000
- From April 2027, income exceeding £30,000
- From April 2028, income exceeding £20,000
What does MTD ITSA Require?
MTD for Income Tax requires that the tax payer:
- Keeps digital records
- Submits quarterly updates
This creates quite a different scenario to the traditional, annual Tax Return.
Our MTD Sole Trader Accounts Package
Our new MTD Sole Trader Package ensures that all MTD requirements are met, and also includes all accountancy needs throughout the year, and for the year end.
If you don't quite require one of our normal Accounts Packages, maybe you only have a few sales and expenses per month, then our MTD Sole Trader Package may be a better fit for you.
Our services include:
- Getting you set up with bookkeeping software to maintain digital records, including issuing invoices to customers
- Assisting with your monthly bookkeeping, each month
- Using the completed bookkeeping records to submit your quarterly updates
- Completing your end of year Self Assessment as usual
We offer a Standard MTD Sole Trader package, alongside a VAT-Registered version for Sole Traders requiring MTD VAT Returns.
MTD Sole Trader
For non-VAT Sole Traders with a minimal amount of transactions per month
Ongoing Day-to-Day Features
- ✔ AAT Licensed Accountant
- ✔ Monthly Bookkeeping
- ✔ Bookkeeping Transactions /Month:
up to 50
- ✔ Making Tax Digital (MTD) Compliance
- ✖ Quarterly VAT Returns
MTD ITSA Compliance
- ✔ Digital Record Keeping
- ✔ Quarterly Updates
Annual features Included
- ✔ Annual Tax Calculation - Self Assessment
- ✔ End of Year Accounts - Profit & Loss, Balance Sheet
- ✔ Submissions to HMRC & Companies House
from £40 per month
MTD Sole Trader Plus VAT
For VAT Sole Traders with a minimal amount of transactions per month
Ongoing Day-to-Day Features
- ✔ AAT Licensed Accountant
- ✔ Monthly Bookkeeping
- ✔ Bookkeeping Transactions /Month:
up to 50
- ✔ Making Tax Digital (MTD) Compliance
- ✔ Quarterly VAT Returns
MTD ITSA Compliance
- ✔ Digital Record Keeping
- ✔ Quarterly Updates
Annual features Included
- ✔ Annual Tax Calculation - Self Assessment
- ✔ End of Year Accounts - Profit & Loss, Balance Sheet
- ✔ Submissions to HMRC & Companies House
from £60 per month
Our MTD Sole Trader Package is designed for simpler Self Employments. If you have a larger number of transactions, you may be more suited to our Standard Pacakges.
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.
- Tax Efficiency Advice – Maximise deductions & reduce liabilities.
- MTD Software Integration – Seamless digital tax reporting.
- Year-End Accounts – Ensure compliance with HMRC regulations.
Who is This Package For?
- Sole Traders – Transition smoothly to MTD compliance.
- Freelancers & Contractors – Simplify tax filing & bookkeeping.
- Self-Employed Professionals – Stay on top of financial obligations
