How a Bookkeeper Can Support Sole Traders with Making Tax Digital for Income Tax

If you’re a sole trader in the UK, there’s a big change on the horizon: Making Tax Digital (MTD) for Income Tax Self Assessment (ITSA).

Starting in April 2026, MTD will become mandatory for sole traders with income over £50,000, and from April 2027 for those earning over £30,000. This shift is part of HMRC’s broader move to modernise the tax system, making it more efficient and effective. But if you’re not ready, it can also feel daunting.

That’s where a bookkeeper can make all the difference.

What Is MTD for Income Tax?

MTD for ITSA is HMRC’s initiative to move away from one annual tax return and towards digital record-keeping and quarterly submissions. Instead of submitting a single tax return once a year, you’ll be expected to:

• Keep digital records of your income and expenses 

• Submit quarterly updates to HMRC

• Use compatible software to manage your finances

 For many sole traders, this represents a significant change in how you manage your business finances. The good news? You don’t have to handle it alone 

How a Bookkeeper Can Help You Prepare for MTD

A qualified bookkeeper doesn’t just handle your numbers—they help you stay organised, compliant, and confident in your financial decisions. Here’s how we can support you with MTD:

✅ 1. Set You Up with the Right Digital Tools

We can recommend and help you set up MTD-compliant software tailored to your business. Whether it’s FreeAgent, Xero, or another platform, we’ll ensure it’s the right fit.

✅ 2. Keep Your Records Accurate and Up to Date

Accurate records are the backbone of MTD. A bookkeeper will maintain and reconcile your records regularly, so you’re never playing catch-up.

✅ 3. Submit Quarterly Updates on Your Behalf

Instead of scrambling to meet HMRC deadlines, we take care of your quarterly updates for you—on time, every time.

✅ 4. Provide Real-Time Financial Insights

With regular digital updates, you’ll gain a clearer picture of your cash flow and tax obligations throughout the year—no more nasty surprises at tax time.

The Benefits Go Beyond Compliance

Working with a bookkeeper means:

Less stress around deadlines

More time to focus on running your business

Greater peace of mind knowing your finances are in expert hands

And perhaps most importantly, you’ll be well-prepared when MTD for ITSA becomes mandatory—no last-minute rush, no risk of penalties.

Final Thoughts

Making Tax Digital might feel like a big change, but with the right support, it doesn’t have to be complicated. As a bookkeeper, my role is to help sole traders like you transition smoothly into the new system—saving you time, stress, and money along the way.

📩 If you’re a sole trader and want to get ahead of the MTD curve, I’d love to help. Let’s have a chat and see how we can make this work for your business.

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Get in touch today to find out how I can support you with Making Tax Digital for Income Tax.

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