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.
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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 4x 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.
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
Designed for traders whose income is consolidated into monthly statements (eg. eBay, OnlyFans, Subcontractors). Perfect for sellers without the need to issue invoices.
Complete MTD Service
- All Features Listed Above
- Cash Basis Accounting
- Included Features:
- Platform Statement-Based Income
- VAT Returns (If Required)
- Purchase Ledger (Track Bills)
- CIS Contractor Accounting
MTD Sole Trader Flex
20+ Monthly Transactions
A fully-managed solution for cash-basis businesses who regularly issue sales invoices to customers. Price scales with your activity and handles ongoing bookkeeping.
Complete MTD Service
- All Features Listed Above
- Cash Basis Accounting
- Included Features:
- Regularly Issue Sales Invoices
- VAT Returns (If Required)
- Purchase Ledger (Track Bills)
- CIS Contractor Accounting
MTD Sole Trader Pro
20+ Advanced Accounting
The complete solution for businesses using Accruals Basis. Includes managed ledgers to track what you owe and are owed, complex reporting, and CIS support.
Complete MTD Service
- All Features Listed Above
- Accruals Basis Accounting
- Included Features:
- Sales Ledger Management
- VAT Returns (If Required)
- Purchase Ledger (Track Bills)
- CIS Contractor Accounting
Unsure which package is right for you? Compare all our available packages for your needs →
MTD Sole Trader Feature Comparison
Compare our packages to find the right level of support for your business needs.
| Feature | Essentials | Flex | Pro |
|---|---|---|---|
| Best For | Platform Income (eBay, Etsy, OnlyFans) | Active Trades & Service Providers | Complex Needs & CIS Contractors |
| Accounting Basis | Cash Basis | Cash Basis | Accruals Basis |
| Monthly Transactions | Up to 20 | 20+ (Scalable) | 20+ (Scalable) |
| Sales Invoicing | |||
| VAT Returns | Optional Upgrade | Optional Upgrade | |
| Purchase Ledger | |||
| CIS Accounting | |||
| Annual Accounts |
All packages include AAT Licensed Accountant support and are fully MTD ITSA compliant.
Get Your MTD Package Price
Compare our MTD Sole Trader Packages
| Feature | Essentials | Flex | Pro |
|---|---|---|---|
| Best For | Side-hustles & Platform Sellers | Active Sole Traders & Trades | Established & Complex Businesses |
| Accounting Basis | Cash Basis | Cash Basis | Accruals Basis |
| Income Type | Consolidated Statements | Individual Sales Invoices | Full Sales Ledger |
| VAT Returns | Optional | Optional | |
| Purchase Ledger | |||
| CIS Accounting | |||
| Monthly Bookkeeping | Up to 20 Trans | Flexible (20+) | Flexible (20+) |
| AAT Licensed Support |
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
What is the difference between Cash Basis and Accruals Basis?
Most small sole traders use Cash Basis, meaning you only record income and expenses when money actually enters or leaves your bank account.
Accruals Basis (included in our Pro package) matches income and expenses to the date the invoice was sent or received. This is often required for businesses that:
- Have a high volume of unpaid invoices at year-end.
- Hold significant stock.
- Need to track exactly what they owe suppliers (Purchase Ledger).
- Are over the VAT threshold and use standard VAT accounting.
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