Sole-Traders who do need to comply with Making Tax Digital

self assessment tax returns for sole-traders not reporting under the making tax digital regulations

Accounting and Tax For Sole-Traders (non-MTD)

This service is provided for individuals who have an annual self-employed income of less than £50,000 and who will not be reporting under the Making Tax Digital scheme starting in April 2026.

We will agree with you a plan to prepare your annual accounts and tax return each year. We can provide free accounting software and train you to create the accounting records you need, or work with your existing book-keeper using Sage, Xero, or Quickbooks.

Cost: From £65/m.

Your Next Step: Call to discuss how we can make your life a lot easier.

How it works

We will first establish how you make your living and what records you keep to account for your business activities.

Based on what we learn, we will agree a plan of how we can work with you to ensure you capture the income and expenditure information we need to prepare a set of accounts and your tax return each year.

We will next send you a letter that sets out the terms of engagement and explains our respective obligations to complete the filing of your tax return with the HMRC. It will also state the fixed cost of providing the service that will only change by prior agreement if it transpires your business and tax affairs are more complex than anticipated.

In accordance with our legal obligations, we will ask you to provide documents to verify your identity as part of the engagement process.

With regards to keeping proper accounting records we will only act for clients who are prepared to use our free accounting software to keep track of their income and expenditure. They must also only use a business bank account and undertake to send us monthly copies of their bank transactions (CSV file) so we can load them efficiently into our accounting software.

It is only a matter of a few years to April 2028 when most sole-traders will have to adopt MTD reporting anyway. With this in mind, and for a number of compliance reasons, we have decided to only act for sole-traders who will adopt a MTD compatible way of working, even if they prefer not to formally register for MTD with the HMRC until they have to.

A one-stop, inclusive service

The way we calculate the monthly fee we agree with you is based on the time we will spend working on your business accounts and tax affairs, which in turn is a reflection of the number of transaction we will process for you over the year.

Within the bounds of what is reasonable, whether we handle your VAT or CIS reporting, will not impact on the charge we make for preparing your accounts and tax returns.

We offer a monthly payroll service if you employ other workers, and the cost of providing this extra service will be factored into the overall price we agree with you.