MTD ITSA - Sole Trader Accountancy Packages
Making Tax Digital for Income Tax - MTD ITSA
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.
They combine 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.
What's Included in Every Package?
Our Fixed Monthly Fee Packages include:
Digital Record Keeping
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
A Complete Solution for Self Assessment & MTD
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.
How we count transactions
We count Bank Entries, not individual sales. This keeps your costs low.
Example: 100 card sales in one day, settled as one daily lump sum - counts as 1 transaction, not 100.
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.
You make 250 sales over two weeks. Because the marketplace sends you a single bi-weekly deposit, it counts as one bank entry.
You process 100 card sales. Your provider settles the daily total into your bank. This counts as 1 entry per day (approx. 30 per month).
You deposit the entire day's cash takings in one go. Providing a daily Z-Total summary means the deposit counts as one transaction.
You pay for electricity, internet, and water via separate Direct Debits. Each separate withdrawal shown on your statement is one transaction.
You withdraw cash 5 times for petty cash expenses. Your bank statement shows 5 separate withdrawals, totaling 5 transactions.
You visit 100 customers. 25 pay by card (1 daily settlement), 5 pay by bank transfer (5 entries), and 70 pay cash (1 weekly deposit). Despite 100 jobs, it is only 7 bank entries.
You submit a weekly or monthly invoice to a main contractor. They pay you one lump sum via bank transfer (after CIS deductions). This counts as a single transaction.
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
Up to 20 Monthly Transactions
Essential MTD ITSA compliance. Perfect for Sole Traders with low transaction volumes or whose income is consolidated into monthly statements.
Complete MTD Service
- AAT Licensed Accountant
- 4x Mandatory Quarterly Updates
- Annual Final Declaration included
- Digital Record Compliance
- Ongoing Monthly Bookkeeping
- Full Profit & Loss & Balance Sheet
- Cash Basis Accounting
- Send Sales Invoices
- VAT Returns (If Required)
MTD Sole Trader Flex
20+ Monthly Transactions
Our fully-managed solution. Price scales accurately with your business activity (20+ transactions) and includes optional VAT returns via the calculator.
Complete MTD Service
- AAT Licensed Accountant
- 4x Mandatory Quarterly Updates
- Annual Final Declaration included
- Digital Record Compliance
- Ongoing Monthly Bookkeeping
- Full Profit & Loss & Balance Sheet
- Cash Basis Accounting
- Send Sales Invoices
- VAT Returns (If Required)
Unsure which package is right for you? Compare all our available packages for your needs →
MTD & Standard Accounting Feature Comparison
Compare our MTD-ready and Full Accountancy packages to find your perfect fit.
| Feature | MTD Essentials | MTD Flex | MTD Flex + VAT | Standard Package |
|---|---|---|---|---|
| Best For | Low-volume Sole Traders | Active Sole Traders | VAT-Registered Traders | Ltd Companies & Larger Sole Traders |
| Accounting Basis | Cash | Cash | Cash | Accruals |
| Sales Invoicing | ||||
| VAT Returns | ||||
| Purchase Ledger | ||||
| CIS Invoicing |
All packages include AAT Licensed Accountant support and are MTD compliant.
Get Your Flex MTD Package Price
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 Sales Ledger, Purchase Ledger, or non-Cash Basis Accounts, you may be more suited to our Standard Packages.
Compare our MTD Sole Trader Packages
| Feature | Essentials | MTD Flex |
|---|---|---|
| Suitable for Cash Basis MTD ITSA Sole Traders | ||
| Bookkeeping Transactions Allowance (per month) | 20 | 20+ |
| Ideal for Consolidated Monthly Statements (e.g., eBay) | ||
| AAT Licensed Accountant Support | ||
| Quarterly Updates Filing and Annual Self Assessment | ||
| Quarterly MTD VAT Returns Available | ||
| Send Sales Invoices to Customers | ||
| Accruals Basis Accounting | Please use our Standard Accounts Packages | |
Is this the right package for me?
Our MTD Sole Trader Packages are specifically designed for individuals who previously completed once-a-year Self Assessments and now need a simple, ongoing digital solution that is MTD ITSA Compliant.
Choose MTD Packages if:
- ✅ You are a Sole Trader (not a Limited Company).
- ✅ You use Cash Basis accounting (reporting income when paid).
- ✅ You have simple bookkeeping needs without unpaid invoice tracking.
Choose Standard Packages if:
- 🚀 You operate as a Limited Company.
- 🚀 You need to track unpaid bills and customer invoices (Ledgers).
- 🚀 You require Accruals-based accounting.
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.
- 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