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.
Our MTD Sole Trader Packages are specifically designed to meet all MTD ITSA requirements throughout the year, offering a streamlined alternative to our standard Accounts Packages. We offer three tiers, depending on your Monthly Transactions and VAT Registration:
A key note on transaction counting: Don't confuse your daily sales with the number of accounting entries. For simplicity and better value, we count consolidated payments as a single transaction.
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.
MTD Sole Trader Essentials
Essential MTD ITSA compliance. Perfect for Sole Traders with low transaction volumes or whose income is consolidated into monthly statements.
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 Packages.
How Our MTD Sole Trader Packages Keep You Compliant
Our Packages include:
Digital Record Keeping
One requirement of MTD ITSA is digital record keeping.
We'll get you set up with bookkeeping software to maintain digital records.
Monthly Bookkeeping
In order to complete quarterly updates, bookkeeping needs to be kept on top of.
We'll assist with your monthly bookkeeping, each month.
Quarterly Updates
HMRC now requires that you submit quarterly updates on your income and expenses.
We'll use the completed monthly bookkeeping to prepare and submit your Quarterly Updates each quarter.
MTD Final Declaration
At each year end, HMRC expects an End of Year Declaration, finalising your income & expenses, as well as any accounting adjustments that would have appeared on your Self Assessment.
We'll prepare and submit this alongside producing your financial statements, such as Profit & Loss and Balance Sheet.
Compare our MTD Sole Trader Packages
Feature
Essentials
Standard
Plus VAT
Suitable for MTD ITSA Sole Traders
✅
✅
✅
Bookkeeping Transactions Allowance (per month)
15
50
50
Ideal for Consolidated Monthly Statements (e.g., eBay)
✅
❌
❌
Quarterly MTD VAT Returns
❌
❌
✅
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.
