Sole Traders · MTD ITSA

MTD ITSA is coming. Be ready.

From April 2026, sole traders earning over £50,000 must use MTD-compatible software to submit quarterly updates to HMRC. From April 2027, the threshold drops to £30,000. QuickEasyTax handles it automatically.

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MTD ITSA Mandation Timeline

April 2026

MTD ITSA mandatory for sole traders and landlords earning over £50,000

April 2027

Threshold drops to £30,000

TBC

Further rollout expected to lower thresholds

What MTD ITSA actually means

In plain English, not HMRC jargon.

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Your Self Assessment return changes

The annual Self Assessment tax return is replaced by four quarterly updates, an EOPS, and a final declaration. More submissions, but each one is much simpler.

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Quarterly means quarterly

Every 3 months, you submit a summary of your income and expenses. HMRC gets an ongoing view of your tax position rather than waiting until January.

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You must use approved software

Paper and spreadsheets no longer count. You must use HMRC-recognised software. QuickEasyTax is built specifically for this.

The full annual cycle

Six submissions per year. QuickEasyTax prepares all of them.

Q1 update

6 Apr – 5 Jul

Income and expenses for Q1

Q2 update

6 Jul – 5 Oct

Income and expenses for Q2

Q3 update

6 Oct – 5 Jan

Income and expenses for Q3

Q4 update

6 Jan – 5 Apr

Income and expenses for Q4

EOPS

End of year

End of period statement — confirm your full year figures

Final declaration

By 31 Jan

Replace your old Self Assessment return

VAT for sole traders

If you're VAT-registered, Making Tax Digital for VAT is already mandatory. QuickEasyTax handles both MTD VAT and MTD ITSA in one place — you don't need separate software.

✓VAT boxes 1–9 calculated from bank feed transactions
✓All VAT schemes: Standard, Flat Rate, Cash Accounting
✓Submit directly to HMRC — no manual filing
✓View obligations, due dates, and submission history

How VAT MTD works →

VAT MTD for sole traders

VAT registration threshold£90,000

Filing frequencyQuarterly

Submission methodDirect to HMRC

Flat Rate Scheme supported✅ Yes

Cash Accounting supported✅ Yes

Annual Accounting supported✅ Yes

Pricing for sole traders

Same price. Every feature included.

£12.50/month

or £125/year (save £25)

✅ MTD ITSA quarterly updates
✅ EOPS and final declaration
✅ VAT MTD filing
✅ Bank feeds via Open Banking
✅ AI transaction categorisation
✅ P&L and income reports
✅ HMRC-recognised software
✅ 21-day free trial, no card required

Start your 21-day free trial →

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Questions from sole traders

What is MTD ITSA and do I need it?

Making Tax Digital for Income Tax Self Assessment is HMRC's digital reporting requirement for sole traders and landlords. From April 2026, if your total income exceeds £50,000, you must use MTD-compatible software to submit quarterly updates. From April 2027, this drops to £30,000. If you're above the threshold, you need to act now.

What replaces my Self Assessment tax return?

Under MTD ITSA, your annual Self Assessment return is replaced by four quarterly updates, an end of period statement (EOPS), and a final declaration. QuickEasyTax handles all of these — you review and submit from within the app.

Do I still need to file VAT if I'm a sole trader?

If you're VAT-registered (turnover over £90,000), yes — MTD for VAT is already mandatory. QuickEasyTax handles both VAT MTD and MTD ITSA in the same app.

How does bank feeds work for a sole trader?

You connect your business bank account via Open Banking (TrueLayer). Transactions are imported daily and categorised as self-employment income or expenses. At quarter end, we summarise these for your ITSA quarterly update — you review and submit in one click.

What if I have both self-employment and property income?

QuickEasyTax currently supports self-employment income (sole trader). Property income (landlords) is on our roadmap. If you have significant property income, you may need to combine QuickEasyTax with separate property management software.

Is my NINO and UTR stored securely?

Yes. Your National Insurance number and UTR are stored encrypted. They are only used to authenticate your HMRC ITSA submissions via OAuth — never logged, never visible in network traffic.

Get MTD-ready before April 2026.

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