Making Tax Digital Services for Sole Traders
Running a trading business as a sole trader now means digital records, quarterly updates and, if VAT registered, two MTD regimes at once. ABM Chartered Accountants provides a complete Making Tax Digital for sole traders service covering everything.
Your Whole Business Compliance in One Place
Making Tax Digital for sole traders applies when gross turnover plus any property income exceeded £50,000 in 2024 to 2025, with lower thresholds following in 2027 and 2028. Trading businesses have particular needs: retailers and hospitality owners may record daily gross takings, VAT-registered traders run MTD for VAT alongside quarterly Income Tax updates, and anyone with two separate trades submits a quarterly update for each.
We set up compatible software for your trade, keep records current, file VAT returns and quarterly updates from the same data, run payroll if needed and complete your final declaration.
Related Making Tax Digital Services
Trading businesses usually need the full MTD cycle plus VAT and payroll. These core services are included in our sole trader packages or available individually when you need one stage.
Software Setup
Selection and configuration of HMRC-recognised software for VAT and Income Tax.
Bank Feed Automation
Live bank feeds, rules and receipt capture that remove manual data entry.
Digital Record Keeping
HMRC-compliant digital records maintained monthly from first entry through to every submission.
Quarterly Updates
Cumulative quarterly updates prepared, checked and submitted before every 7th deadline.
MTD for VAT
Digital VAT record keeping, HMRC-compatible software and accurate quarterly VAT return submissions.
Final Declaration
Year-end adjustments, reliefs and your MTD tax return filed by 31 January.
Why Trading Businesses Choose ABM
VAT and Income Tax together: One set of records feeds both MTD regimes, so nothing is entered twice or reported differently.
Takings recorded simply: Daily gross takings from tills and card machines are captured without logging every sale.
Staff costs correct: Payroll and CIS journals flow into your records automatically each pay run.
Multiple trades handled: Separate quarterly updates for each business are prepared from one bookkeeping system.
Structure reviewed: We tell you when incorporation would save tax or simplify compliance.
MTD Support for Sole Traders Across the UK
ABM Chartered Accountants supports trading sole traders from our Canary Wharf office in London and remotely for businesses in Manchester, Birmingham, Leeds, Glasgow, Bristol, Nottingham and across the UK.
Sole Trader Businesses We Support
We provide MTD for tradespeople such as plumbers, electricians and builders, shops and market traders, cafes and takeaways, hair and beauty salons, taxi and courier drivers and mobile professionals.
Why Choose ABM for Sole Trader MTD Support
Both MTD Regimes
One team runs your VAT returns and Income Tax quarterly updates from the same records, which most firms split.
Trade-Specific Setup
Software configured for tills, job costing, CIS or stock, depending on how your business actually operates.
Fixed Annual Fee
Bookkeeping, VAT, payroll, four updates and the final declaration for one agreed price paid monthly.
How We Work
Initial Consultation
Set Up and Onboard
Ongoing Support
We provide regular reviews and proactive advice to keep your finances optimised and HMRC-compliant.
Get in Touch Today
Whether you need help with your tax return, payroll, VAT, or business advisory, our qualified UK accountants are ready to provide clear, practical guidance for your specific needs.
Book a Consultation
Fill in the form below and one of our expert accountants will contact you promptly to discuss your accounting and tax requirements.
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MTD for Sole Traders FAQs
Answers to the questions trading sole traders and small business owners ask most about Making Tax Digital.
When must a sole trader join MTD?
From April 2026 if gross turnover plus property income exceeded £50,000 in 2024 to 2025, from April 2027 above £30,000 and from April 2028 above £20,000. Turnover is tested before expenses.
I am VAT registered, what changes?
You already use MTD for VAT. MTD for Income Tax adds four quarterly updates and a final declaration. We run both from the same records and can align the quarters.
Do I have to record every sale?
Not if you are a retailer or hospitality business. HMRC allows daily gross takings to be recorded as a single figure, provided the total is captured digitally each day.
I run two businesses, how does MTD work?
Both count towards the threshold. Each trade is a separate business under MTD, so a separate quarterly update is submitted for each, then combined at final declaration.
Does MTD affect my payroll or CIS?
No. PAYE and CIS returns continue as before. Wages and deductions simply need to flow into your digital records so quarterly updates and the final declaration are complete.
Should I become a limited company instead?
Sometimes. Companies are outside MTD for Income Tax but have their own filing duties. We compare tax, compliance cost and liability protection and recommend the structure that suits you.