Making Tax Digital for Income Tax

Making Tax Digital for Income Tax (MTD-ITSA) is coming—and if you're a sole trader or landlord with income over the threshold, quarterly digital submissions to HMRC will soon be mandatory. This new requirement has created understandable anxiety. Many sole traders and landlords have managed perfectly well with spreadsheets for years, now facing forced investment in accounting software and quarterly compliance work they didn't budget for.

We've designed our MTD-ITSA service specifically for people in this situation: flexible support scaled to your needs and budget, from full bookkeeping service through to affordable submission-only support if you're happy managing your own records.

Our approach is simple: You choose how much help you need. We'll handle quarterly submissions properly (because penalties aren't worth the risk), but everything else—bookkeeping, software setup, ongoing support—is tailored to what you actually want and have budgeted for.

  • The regulation is complex, but here's what it means practically:

    Who It Affects

    • Sole traders with business income over £50,000 (from April 2026)

    • Sole traders with business income over £30,000 (from April 2027)

    • Landlords with property income over the thresholds (same dates)

    • "Income" means turnover before expenses—not profit

    What You Must Do

    • Keep digital records using MTD-compatible software (spreadsheets alone won't comply)

    • Submit quarterly updates to HMRC summarising income and expenses

    • Submit a final declaration at year-end

    Quarterly Deadlines

    Four submissions per year, each covering a three-month period:

    • 7th August

    • 7th November

    • 7th February

    • 7th May

    Plus a final declaration shortly after year-end.

    The Reality

    The reality is that this new legislation will increase the administrative burden for sole traders and landlords. However, there are also significant advantages to the tax payer. Real time digital records mean accurate and efficient record keeping - no missing paperwork and up to date financial information available at your fingertips. Increased automation results in less time required and reduces risk of manual errors. The quarterly reporting requirement allows the tax payer to plan better and manage cash flow. 

    Getting ahead with the right software and package will help to minimise cost and streamline compliance. 

    You might be experiencing:

    • Finance team overwhelmed with manual data entry and reconciliation work

    • Reporting delays meaning leadership makes decisions on weeks-old information

    • Integration gaps requiring staff to manually transfer data between systems (sales platforms, inventory, CRM, accounting software)

    • Process inconsistencies where different team members follow different procedures

    • Audit preparation stress because historical information is difficult to retrieve

    • Scalability concerns—your systems worked fine but haven’t kept pace with your growth

    These problems compound as you grow. What starts as "a bit of extra manual work" becomes a bottleneck that limits your ability to scale profitably.

    That's where we come in. With over a decade of experience reviewing and optimising financial systems for UK SMEs, we identify inefficiencies your team has learned to work around and create actionable plans for improvement.

  • Flexibility Without Packages

    No bronze/silver/gold tiers forcing you into services you don't need. We scope support to match your actual requirements and budget.

    Fixed Pricing Removes Uncertainty

    For Guided Compliance and Submission Support, you know exactly what you're paying annually. No surprise bills, no hourly rate anxiety.

    Compliance Security

    Quarterly submissions handled by professionals who understand the requirements. Penalties for late or incorrect submissions can be costly—peace of mind is worth the investment.

    Xero Gold Partner Expertise

    We know Xero intimately and can configure it efficiently for MTD-ITSA compliance. We won't sell you features you don't need.

    Accessible Support for Tight Margins

    We recognise many sole traders and landlords operate on thin margins. This service is priced accordingly—providing compliance security without premium advisory pricing.

    We Don't Upsell Unnecessary Services

    If you're happy managing your own books and just need submissions handled, that's fine with us. We'll provide exactly what you need, nothing more.

  • Who This Is For

    Sole traders or landlords who want to outsource bookkeeping entirely and have confidence that quarterly submissions happen correctly and on time, every time.

    What We Do

    • Work directly in your Xero organisation throughout the year

    • Process all transactions and receipts as they occur

    • Reconcile bank accounts regularly (weekly or monthly)

    • Manage supplier and customer records

    • Ensure accurate categorisation for tax purposes

    • Prepare quarterly submissions for your review and sign-off

    • Submit to HMRC before deadlines

    • Prepare final year-end declaration

    • Liaise with your accountant for Self Assessment preparation

    • Provide ongoing support for any questions about your records

    What You Do

    • Forward receipts and invoices to us (via email, Hubdoc, or however you prefer)

    • Review and approve quarterly submissions before we submit

    • Continue working with your accountant for year-end Self Assessment (or we can introduce you to one)

    When This Makes Sense

    You're busy running your business, you dislike bookkeeping, or your time is worth more than the cost of outsourcing it. You want peace of mind that compliance is handled professionally.

    Pricing

    Custom-quoted based on transaction volume and complexity. Fixed monthly fee so you know exactly what you're investing.
    requirements. We provide fixed-price quotes after understanding your situation, so you know exactly what you're committing to.

  • Who This Is For

    Sole traders or landlords comfortable managing their own bookkeeping in Xero but wanting expert oversight to ensure accuracy before quarterly submissions.

    What We Do

    • Access your Xero organisation in the final month of each quarter

    • Review all transactions and reconciliations for accuracy

    • Identify any issues, errors, or missing information

    • Guide you through corrections needed

    • Prepare quarterly submission for your review

    • Submit to HMRC before deadlines

    • Prepare final year-end declaration

    • Provide quarterly check-in calls to answer questions

    What You Do

    • Maintain your Xero records throughout the quarter (transaction entry, bank reconciliation)

    • Respond to any queries we raise during review

    • Make corrections we identify before submission

    • Approve quarterly submissions before we submit

    When This Makes Sense

    You're organised and comfortable with bookkeeping, but you want professional validation that you're doing it correctly before submitting to HMRC. The fixed fee removes uncertainty about compliance costs.

    Pricing

    Fixed annual fee—indicative starting point £800-£1,200/year (approximately £200-£300 per quarter) depending on complexity. No surprises, no hourly billing.

    The figures above are indicative starting points. Your actual investment depends on transaction volume, complexity, and specific requirements. We provide fixed-price quotes after understanding your situation, so you know exactly what you're committing to.

  • Who This Is For

    Experienced sole traders or landlords fully confident managing their own Xero records who simply need someone to handle the technical submission to HMRC.

    What We Do

    • Light review of your Xero records for obvious issues

    • Prepare quarterly submission from your data

    • Submit to HMRC on your behalf before deadlines

    • Prepare final year-end declaration

    • Flag any major concerns we notice (though detailed review isn't included)

    What You Do

    • Maintain complete and accurate Xero records throughout the year

    • Ensure all bank reconciliations are complete before submission

    • Have confidence your categorisation and records are correct

    • Approve quarterly submissions before we submit

    When This Makes Sense

    You've been managing your own books successfully for years, you're comfortable with Xero, and you just need the technical submission handled. You want minimal cost for maximum compliance security.

    Pricing

    Fixed annual fee—indicative starting point £300-£500/year (approximately £75-£125 per quarter). The most affordable compliance option.

    The figures above are indicative starting points. Your actual investment depends on transaction volume, complexity, and specific requirements. We provide fixed-price quotes after understanding your situation, so you know exactly what you're committing to.

  • If You Currently Use Spreadsheets

    We'll review your spreadsheet structure and ensure Xero expense categories match your current approach. You'll have familiar categories in your new software, minimising the learning curve.

    If You Have Simple Requirements

    Sole traders with straightforward businesses (single income source, limited expenses) get straightforward setups. We don't overcomplicate things.

    If You Have Unusual Structures

    Property portfolios, multiple income sources, partnerships, complex expense allocation—we can handle it. Your Xero setup will reflect your actual business model.

    If You're On a Tight Budget

    Our Submission Support service level provides compliance security for minimal cost. You maintain control and minimise expense.

  • If you're not currently using Xero (or any MTD-compatible software), you'll need to get set up before MTD-ITSA begins. We've designed an affordable, no-frills Xero onboarding specifically for sole traders and landlords caught by this legislation.

    Light-Touch Xero Onboarding (Discounted for MTD-ITSA Clients)

    What's Included

    • Xero organisation setup with standard chart of accounts appropriate for sole traders or landlords

    • Bank feed connections to your business bank accounts

    • Payment service provider connections (PayPal, Stripe, etc.) if applicable

    • Invoice template setup for customer billing (if you invoice customers)

    • Contact list creation for suppliers and customers (if you have existing lists)

    • Chart of accounts customisation to match your current expense categories

    • Basic training on transaction entry, bank reconciliation, and invoice creation

    • MTD-ITSA submission configuration

    What's Not Included (but available separately if needed):

    • Historical data migration from spreadsheets or other software

    • Extensive chart of accounts customisation beyond standard setup

    • Complex workflow configuration or app integrations

    • Comprehensive training beyond basics

    Why Light-Touch?

    We're keeping costs down by providing straightforward setup rather than comprehensive implementation. You get a functional, MTD-compliant Xero organisation configured appropriately for your business, without paying for bells and whistles you may not need.

    Pricing

    Significantly discounted from our standard Xero implementation service for MTD-ITSA clients choosing any of our compliance support options.

    Timeline

    Typically completed within 2 weeks.

    Limited-Time: Discounted Migration from Sole Trader Platforms

    If you're currently using FreeAgent, Coconut, Crunch, Kashflow, or similar platforms aimed at sole traders and want to migrate to Xero for MTD-ITSA, we're offering discounted migration services for a limited period.

    Migration includes

    • Data extraction from your current platform

    • Xero setup and configuration

    • Historical data migration (opening balances or full transactional history based on your preference)

    • Training on Xero basics

    • MTD-ITSA submission setup

    This offer is designed to help sole traders and landlords transition smoothly to Xero without prohibitive migration costs during an already expensive regulatory change.

  • Discovery Call (30 minutes, free)

    We discuss your situation:

    • Are you a sole trader, landlord, or both?

    • Current record-keeping approach (spreadsheets, software, paper)

    • Transaction volume and complexity

    • Comfort level with bookkeeping

    • Budget constraints

    • Service level that makes sense for you

    Proposal and Pricing

    We provide:

    • Clear recommendation for service level

    • Fixed-price quote (for Guided or Submission support)

    • Xero setup scope and pricing

    • Timeline to get you MTD-ITSA ready

    Xero Setup (if needed)

    • Light-touch onboarding completed within 2 weeks

    • Training on basics you'll need

    • Ready for transaction processing

    Service Begins

    • For Full Support: Regular bookkeeping begins immediately

    • For Guided/Submission: Quarterly engagement begins when first submission deadline approaches

    • First submission handled well before deadline—no last-minute stress

Frequently Asked Questions

  • If your qualifying income is over £50,000, you'll need to be ready by April 2026. If over £30,000, by April 2027. We recommend starting preparation 6-12 months before your start date to ensure smooth transition.

  • No. Spreadsheets alone don't comply with MTD-ITSA requirements. You must use MTD-compatible software like Xero. However, you can continue using spreadsheets for your own management if you prefer, as long as you also maintain digital records in Xero for HMRC submissions.

  • We can coordinate with your existing accountant who handles your Self Assessment, or we can introduce you to accountants we work with regularly. Many clients use us for MTD-ITSA quarterly compliance and their existing accountant for year-end tax returns.

  • That's exactly why our Full Support option exists. We handle all bookkeeping throughout the year so you don't have to worry about it—just forward receipts and review submissions quarterly.

  • HMRC can impose penalties for late submissions. Penalties start at fixed amounts and can increase for repeated failures. This is why we recommend at minimum our Submission Support service—professional handling ensures deadlines aren't missed.

  • Absolutely. Many clients start with minimal support and increase service levels if they find bookkeeping more time-consuming or stressful than expected. We'll adjust scope and pricing accordingly.

  • If your total rental income (before expenses) exceeds the threshold, yes. MTD-ITSA applies regardless of whether it's your full-time occupation. Many landlords will be caught by this legislation and need compliance support.

  • This is a tax planning question best discussed with a qualified tax advisor. We focus on compliance if you are over the threshold, not structuring to avoid it.

  • Any MTD-compatible software works for HMRC compliance purposes. We work exclusively with Xero, so our MTD-ITSA service requires Xero. If you strongly prefer other software, we can provide recommendations for providers who support those platforms.

  • Xero pricing starts around £12-15/month for sole trader plans (pricing varies and Xero occasionally changes packages). This is separate from our service fees. We'll guide you to the appropriate Xero subscription level for your needs.

Don't Let MTD-ITSA Create Stress and Penalties

Making Tax Digital for Income Tax is happening. The legislation may be frustrating, the timing inconvenient, and the additional cost unwelcome—but non-compliance penalties are worse.

Our MTD-ITSA service is designed specifically for sole traders and landlords in your position: flexible support at accessible prices, so you stay compliant without breaking the bank or spending more time on administrative tasks.

Book a free 30-minute discovery call to discuss your situation. We'll provide honest advice about which service level makes sense for you and what investment to expect, with no obligation.

Speak with our Team