Chiral Accountants - UK-Wide & Doncaster Accountants for Small Businesses

MTD for Sole Traders: Accountancy Packages

Making Tax Digital for Income Tax - MTD ITSA

MTD Compliance without the stress

From April 2026, the way Sole Traders report income is changing. Our dedicated MTD Sole Trader packages take the weight off your shoulders, ensuring you are fully compliant with the new MTD ITSA regulations without the stress.

  • Professional Bookkeeping
    Get the underlying digital records correct & accurate
  • Quarterly Updates
    We handle all four mandatory digital submissions for you
  • Year-End Finalisation
    A complete service covering your final tax declaration

Everything you need in one fixed monthly plan.

Get MTD Compliant Today

Making Tax Digital: 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 2024/25 from April 2026.
  • £30,000 2025/26 from April 2027.
  • £20,000 2026/27 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?

Comprehensive Support as Standard

We take the stress out of compliance by providing a complete end-to-end service. From setting up your software to filing your final declarations, everything is included in one transparent monthly price—with no hidden surprises.

Digital Record Keeping

Complete setup of your cloud accounting software, ensuring you meet HMRC's mandatory digital record-keeping and digital-links 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.

Adjustments & Final Declaration

We handle the mandatory HMRC End of Year Declaration, including all final accounting adjustments, such as Capital Allowances.

Every client also benefits from:

  • AAT Licensed Accountant
  • Profit & Loss and Balance Sheet
  • Software Support

Our MTD Sole Trader Packages

A Complete MTD Solution

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, eliminating standalone software costs or surprise end-of-year fees, while protecting your valuable time to focus strictly on running your business.

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.

Understanding Your Transaction Count

We count the single total amount that appears on your bank statement. This approach drastically reduces your costs.

Marketplace Sales (eBay, Etsy, Amazon)

You make 250 sales over two weeks. Because the marketplace sends you a single bi-weekly deposit, it counts as one bank entry.

1 Transaction
Card Payments (Stripe, Square, Zettle)

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).

30 Transactions
Daily Cash Takings & Till Totals

You deposit the entire day's cash takings in one go. Providing a daily Z-Total summary means the deposit counts as one transaction.

1 Transaction
Monthly Business Expenses

You pay for electricity, internet, and water via separate Direct Debits. Each separate withdrawal shown on your statement is one transaction.

3 Transactions
ATM Petty Cash Withdrawals

You withdraw cash 5 times for petty cash expenses. Your bank statement shows 5 separate withdrawals, totaling 5 transactions.

5 Transactions
Service Rounds (e.g., Window Cleaners)

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.

7 Transactions
Construction (CIS Subcontractors)

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.

1 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.

All-Inclusive MTD Sole Trader Support

MTD Compliance Package

A complete, stress-free MTD ITSA compliance package tailored dynamically to your specific accounting method and transaction volumes.

Complete MTD Compliance

  • Bookkeeping Support & Reconciliation
  • Accounting Software
  • 4x MTD Quarterly Updates
  • Tax Adjustments & Final Declaration
  • Cash Basis Accounting
  • CIS Subcontractor Accounting
  • Accruals Purchase Ledgers
  • MTD for VAT Returns Filing
Accruals Basis
VAT Registered

£30.00 per month

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 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.

How It Works: Your Path to MTD Compliance

Our MTD Process is Stress Free

Transitioning to Making Tax Digital for Income Tax (MTD ITSA) doesn't have to be complicated. Here is how our all-inclusive packages keep you on top of your obligations through April 2026.

1

Discovery

Get in touch to see if our MTD Sole Trader packages are the right match for your business.

2

Onboarding

Complete our simple digital onboarding process and identity checks to get started.

3

Software Setup

Accept your invitation to our cloud accounting software, fully configured for MTD compliance.

4

Connect Bank

Link your dedicated business bank account for automated, secure transaction imports.

5

We Process

We handle your monthly bookkeeping and send a quarterly summary for your approval.

6

Filing

Once approved, we submit your mandatory 4x quarterly updates directly to HMRC.

7

Finalisation

We prepare and file your approved End of Year Declaration, including accounting adjustments, to complete your compliance.

MTD Package Overview

Service Details Included
Suitable for Sole Traders & Self-Employed Businesses
Supports both Cash Basis & Accruals Basis accounting frameworks
Flexible Bookkeeping Transactions (Scales automatically to your monthly bank volume) Flexible
Making Tax Digital (MTD) Compliance (4x Quarterly Update Submissions to HMRC)
Annual Tax Calculation & End of Year Finalisation Declaration
Optional VAT Returns Module (Available for both Cash and Accruals structures)
Advanced Accounting Ledgers & CIS Contractor Adjustments (Included when Accruals Basis is toggled)
Dedicated Support from an AAT Licensed Accountant

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 Business 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