Making Tax Digital for Income Tax

MTD ITSA software for sole traders and landlords

From 6 April 2026, sole traders and landlords with gross income above £50,000 must keep digital records and file quarterly to HMRC. AccLedger is HMRC-recognised, full end-to-end MTD for Income Tax software: quarterly updates during the year, then the end of year and final declaration — without the spreadsheet panic.

Get MTD ITSA-readySee pricing

HMRC-recognised · Full end-to-end MTD ITSA · 30-day free trial · From £7.50/month for sole traders, £5/month for landlords

Quarterly updates, prepared for you

AccLedger compiles your business income and expenses each quarter from your digital records, so you review the update and submit it to HMRC in a few clicks — with reminders before each deadline, so you never miss a window.

Digital records that meet HMRC's rules

Every transaction is captured digitally with an unbroken link to its source — bank feed, receipt photo, invoice, manual journal. No paper trail, no spreadsheet bridge required.

Real-time tax estimate

See your projected income tax liability after every quarter so there are no surprises in January. AccLedger applies your tax bands, allowances and reliefs automatically.

End of year and final declaration

When the tax year ends, finish it in AccLedger — annual submission, accounting adjustments, losses and your tax calculation, then the final declaration — pulling in employment, dividend, and savings income as needed.

Multi-business support

Run a sole trade and rent out a property? AccLedger keeps the two income sources separate, files each as HMRC requires, and rolls them up into one final declaration.

Cash basis or accruals — your choice

Switch between cash basis and traditional accruals on a per-business basis. AccLedger handles the calculation and reports correctly for each scheme.

Are you in scope? Here are the thresholds

Making Tax Digital for Income Tax is being phased in by gross income from self-employment and property. AccLedger gets you ready well before your wave begins, so the transition is a non-event.

  • April 2026: gross income over £50,000 (sole traders & landlords)
  • April 2027: threshold drops to £30,000
  • April 2028: threshold drops to £20,000
  • Below £20,000: continue with the existing self-assessment route

Built for landlords with multiple properties

Track rental income and allowable expenses per property, with automatic split between UK and overseas property businesses as HMRC requires. Mileage, repairs, mortgage interest, agent fees — all categorised.

  • Income and expenses tracked per property
  • Automatic UK vs overseas property business split
  • Mortgage interest restriction for higher-rate landlords applied automatically
  • Property allowance calculation included

Built for sole traders running real businesses

Whether you are a contractor, consultant, freelancer, or trade — AccLedger captures the full picture. Bank feeds via open banking, mileage, home-office allowance, simplified expenses, and CIS deductions where they apply.

  • Open banking bank feeds via GoCardless
  • Mileage and use-of-home claims
  • Simplified vs actual expenses comparison
  • CIS deductions tracked and reconciled

Full end-to-end: quarterly updates, end of year, final declaration

HMRC describes three kinds of MTD for Income Tax software — in-year only, end-of-year only, and full end-to-end. AccLedger is full end-to-end: four cumulative quarterly updates during the year, the complete end-of-year process for each business, and a final declaration that wraps in your other income.

  • Quarterly update preview before submission
  • Annual submission: adjustments and allowances per business
  • Accounting adjustments via Business Source Adjustable Summary (BSAS)
  • Losses, tax liability adjustments and the late accounting date rule
  • Tax calculation shown before you submit the final declaration
  • Final declaration includes employment, dividends, savings and pensions

Frequently asked questions

When does MTD ITSA become mandatory for me?
From 6 April 2026, sole traders and landlords with combined gross income from self-employment and property over £50,000 must comply. The threshold drops to £30,000 from April 2027 and £20,000 from April 2028. Whether you are in scope depends on the qualifying income on an earlier Self Assessment return — for April 2026, your 2024–25 return.
Is AccLedger HMRC-recognised for MTD ITSA?
Yes. AccLedger is on HMRC's list of recognised software for Making Tax Digital for Income Tax, supporting quarterly updates, the end of year and final declarations through the official HMRC endpoints.
Is AccLedger full end-to-end MTD for Income Tax software?
Yes. HMRC describes three kinds of MTD for Income Tax software: in-year only, end-of-year only, and full end-to-end. AccLedger is full end-to-end. You keep digital records and send quarterly updates during the year, then complete the end of year in the same place: annual submission and allowances, accounting adjustments (Business Source Adjustable Summary), losses, tax liability adjustments, your tax calculation and the final declaration. HMRC has approved it for live use.
What are the MTD ITSA deadlines?
Quarterly updates are due by 7 August, 7 November, 7 February and 7 May. The final declaration for the tax year is due by 31 January following the end of that tax year — the same date as the Self Assessment return it replaces — and any tax owed is still paid by 31 January.
What does AccLedger cost for MTD ITSA?
Sole trader plans start at £7.50 per month (or £75 per year). Landlord plans start at £5 per month (or £50 per year). Both include unlimited MTD ITSA submissions, optional bank feeds, and an invite for your accountant.
I have both a sole trade and rental property — is that supported?
Yes. AccLedger keeps the two income sources separate, files each quarterly update as HMRC requires (one for the trade, one for property), and combines them into the final declaration.
Can I use cash basis?
Yes. Cash basis has been the default for sole traders and landlords since April 2024. AccLedger supports both cash basis and traditional accruals on a per-business basis — switch the setting and reporting follows.
How do bank feeds work?
AccLedger connects to your bank via open banking through GoCardless. Transactions flow in automatically, AccLedger suggests categories, and a tap-to-confirm workflow lets you reconcile your week in minutes.
What about my accountant?
Invite your accountant to your AccLedger account at no extra cost. They can review and approve quarterly updates before submission, run reports, and prepare your final declaration. Accountancy firms can manage all their MTD ITSA clients from a single dashboard via the partner programme.
Do I still file a self assessment under MTD ITSA?
Under MTD for Income Tax, the final declaration replaces the annual Self Assessment tax return. During the year you send quarterly updates; after the year ends you complete the end of year and submit the final declaration. AccLedger guides you through each step at the right time of year.

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Get ahead of the April 2026 deadline

MTD ITSA is here. Start your digital records in AccLedger today and let the quarterly deadline come and go without drama. Free for 30 days, no card required.

Get MTD ITSA-readySee pricing

HMRC-recognised · Full end-to-end MTD ITSA · 30-day free trial · From £7.50/month for sole traders, £5/month for landlords