Stay compliant, simplify reporting, and avoid penalties with a structured MTD plan.
Making Tax Digital (MTD) for Sole Traders & Landlords
The way sole traders and landlords report income to HMRC is changing. Making Tax Digital for Income Tax (MTD for ITSA) moves you from a once-a-year Self Assessment return to regular digital reporting using compatible software.
Fresh Accounts Limited helps you prepare early, implement the right software, and handle submissions accurately—so MTD becomes a smooth transition rather than a last-minute compliance risk.
You are affected if your total gross business and/or property income is:
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Over £50,000 per year from 6 April 2026
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Over £30,000 per year from 6 April 2027
Our Making Tax Digital (MTD) Services
MTD Readiness Assessment
We review your current record-keeping and reporting workflow, confirm your MTD obligations, and create a step-by-step compliance plan tailored to your income sources (sole trade, property, or both).
Digital Record-Keeping Setup
We help you move to MTD-compliant digital records using appropriate software—so income and expenses are captured correctly and consistently throughout the year.
Quarterly Updates to HMRC
Every three months, you must submit a summary of income and expenses directly from your software. We prepare and submit your quarterly updates accurately, reducing errors and compliance risk.
Software Setup & Training
We recommend the right MTD-compatible software and provide practical training so you can run day-to-day tasks confidently (bank feeds, reconciliation, invoicing, receipt capture, reporting).
Final Declaration (Replacing Self Assessment)
We complete the final declaration that replaces the traditional Self Assessment return, consolidating all relevant income sources (including employment or investments where applicable) into one compliant submission.
End of Period Statement (EOPS)
After the tax year ends, we finalise your business/property figures, apply allowances and adjustments, and complete the EOPS correctly—so your year-end position is clean and defensible.
Why MTD Is an Opportunity—Not Just an Obligation
01
No more year-end surprises
02
No more year-end surprises
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Clearer financial insight
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Fewer errors and stronger records
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Compliance confidence
FAQs
1 — Who must comply with MTD for Income Tax?
Sole traders and landlords must comply if their total gross business and/or property income exceeds £50,000 from 6 April 2026, expanding to £30,000 from 6 April 2027.
2 — What replaces the annual Self Assessment return?
MTD for ITSA introduces: digital records, quarterly updates, an End of Period Statement (EOPS), and a Final Declaration which replaces the traditional Self Assessment submission.
3 — Do quarterly updates calculate my final tax bill?
Quarterly updates are summaries, not full tax calculations. They are intended to provide HMRC with periodic updates; the final position is confirmed later through year-end processes and the final declaration.
4 — Can I use spreadsheets?
Spreadsheets alone are generally not sufficient unless used with a compliant “digital link” approach supported by MTD-compatible bridging solutions. Most businesses find cloud software simpler and more robust.
5 — What should I do now to prepare?
Start early by:
a) choosing suitable cloud accounting software
b) digitising receipts and invoices
c) building a consistent routine for categorising income/expenses
d) arranging an MTD readiness review to confirm your path
6 — How will Fresh Accounts help me specifically?
We handle planning, setup, training, and submissions end-to-end—or support you partially if you prefer to keep daily bookkeeping in-house.
