May 12, 2026 Kieron McGahan Post in Uncategorized Making Tax Digital — more than just compliance Making Tax Digital for Income Tax Self Assessment (MTD ITSA) is now live for sole traders and landlords with qualifying income above £50,000. The £30,000 threshold follows in April 2027, and £20,000 in April 2028. If you’re self-employed and not yet set up, the time to act is now. A lot of the conversation has been about the burden — the quarterly reporting, the software requirements, the move away from a single annual return. That’s real. But getting properly set up for MTD tends to deliver something most sole traders didn’t have before, and that’s worth understanding. What MTD ITSA actually requires From the point your threshold is reached, you’ll need to: Keep digital records of all income and expenses Submit quarterly updates to HMRC using compatible software Complete a final end-of-year declaration by 31 January Paper records and manual spreadsheets are no longer sufficient once you’re in scope. HMRC-compatible software is a requirement, not an option. What a proper MTD set-up actually gives you Getting set up properly — digital records, connected bank feeds, invoices going out through the software — gives you a live view of your income as it builds through the year. For a sole trader managing finances manually, that’s a material change. One benefit that often goes unmentioned: the VAT registration threshold is £90,000. It’s easy to miss when you’re busy. With MTD infrastructure in place, monitoring where you are against it becomes straightforward. And if you do cross it, you’re already most of the way there. VAT MTD submissions run through the same software with a few configuration settings. The invoicing and record keeping is already set up. The step up is smaller than it looks. Other compliance areas that often need attention Moving to digital records frequently surfaces issues that have been quietly building in the background — CIS registration for tradespeople, separation of business and personal finances, and a review of whether the right expenses are being captured. None of these are unusual, but they’re worth addressing properly as part of the transition. MTD ITSA compliance — from £45 per month + VAT KG McGahan Consulting offers a straightforward MTD ITSA compliance service for sole traders, starting from £45 per month + VAT. This includes QuickBooks Online subscription, initial set-up and bank connection, invoice templates, basic training, and agent registration with HMRC for quarterly submissions and your end-of-year declaration. Pricing reflects the complexity and transaction volume of your business. A short initial conversation is usually enough to confirm what’s involved and agree the right fee. If the £30,000 threshold applies to you from April 2027, now is a sensible time to get the infrastructure in place — rather than leaving it to the last quarter. Get in touch to find out more.
Making Tax Digital — more than just compliance Making Tax Digital for Income Tax Self Assessment (MTD ITSA) is now live for sole traders and landlords with qualifying income above £50,000. The £30,000 threshold follows in April 2027, and £20,000 in April 2028. If you’re self-employed and not yet set up, the time to act is now. A lot of the conversation has been about the burden — the quarterly reporting, the software requirements, the move away from a single annual return. That’s real. But getting properly set up for MTD tends to deliver something most sole traders didn’t have before, and that’s worth understanding. What MTD ITSA actually requires From the point your threshold is reached, you’ll need to: Keep digital records of all income and expenses Submit quarterly updates to HMRC using compatible software Complete a final end-of-year declaration by 31 January Paper records and manual spreadsheets are no longer sufficient once you’re in scope. HMRC-compatible software is a requirement, not an option. What a proper MTD set-up actually gives you Getting set up properly — digital records, connected bank feeds, invoices going out through the software — gives you a live view of your income as it builds through the year. For a sole trader managing finances manually, that’s a material change. One benefit that often goes unmentioned: the VAT registration threshold is £90,000. It’s easy to miss when you’re busy. With MTD infrastructure in place, monitoring where you are against it becomes straightforward. And if you do cross it, you’re already most of the way there. VAT MTD submissions run through the same software with a few configuration settings. The invoicing and record keeping is already set up. The step up is smaller than it looks. Other compliance areas that often need attention Moving to digital records frequently surfaces issues that have been quietly building in the background — CIS registration for tradespeople, separation of business and personal finances, and a review of whether the right expenses are being captured. None of these are unusual, but they’re worth addressing properly as part of the transition. MTD ITSA compliance — from £45 per month + VAT KG McGahan Consulting offers a straightforward MTD ITSA compliance service for sole traders, starting from £45 per month + VAT. This includes QuickBooks Online subscription, initial set-up and bank connection, invoice templates, basic training, and agent registration with HMRC for quarterly submissions and your end-of-year declaration. Pricing reflects the complexity and transaction volume of your business. A short initial conversation is usually enough to confirm what’s involved and agree the right fee. If the £30,000 threshold applies to you from April 2027, now is a sensible time to get the infrastructure in place — rather than leaving it to the last quarter. Get in touch to find out more.