KAIROS-KAccounting Practice
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Sole traders and landlords

Making Tax Digital for Income Tax, handled

Since 6 April 2026, sole traders and landlords over the threshold keep digital records and report to HMRC every quarter. We keep your books, or teach you to keep them, and file every update only after you have approved it.

Work out my price Does it apply to me?
£150per quarterly update
£60one-to-one lesson
Prices include VAT. Bookkeeping charged per transaction.
Larysa Brovchuk going through digital records with a client

Who has to join

When MTD applies to you

Qualifying income is your total self-employed turnover plus gross rental income, before expenses. HMRC looks at the return for an earlier year.

From 6 April 2026over £50,000Based on your 2024–25 income · in force now
From 6 April 2027over £30,000Based on your 2025–26 income
From 6 April 2028over £20,000Planned

Goes into your quarterly updates

  • Self-employment income and expenses
  • Property income and expenses

Goes into your final declaration

  • Salary from a job
  • Dividends, shares, bonds and interest
  • Crypto, capital gains and foreign income

Under the threshold, or just started with no return filed yet? You stay on an annual Self Assessment return. Some people are exempt; check GOV.UK or ask us.

The one thing that saves you money

Keep a separate account for your business

Under Making Tax Digital every transaction on the account you use for business must be recorded. If your groceries, haircuts and holidays go through the same account, each one has to be checked, queried and explained, and you pay for that time.

  • Client payment · J Smith Builders+£2,400.00Business
  • Tesco Express−£23.18? Ask client
  • Screwfix · timber and fixings−£186.40Business
  • Barber's−£18.00? Ask client
  • Flight to Malaga−£214.97? Ask client
  • Shell · van fuel−£72.50Business
  • Takeaway−£31.45? Ask client
  • Client payment · K Patel+£950.00Business
  • Clothing shop−£64.00? Ask client
  • Streaming subscription−£10.99? Ask client
  • Business phone contract−£28.00Business
  • Cinema−£24.80? Ask client
12lines to record and pay for
7questions from your accountant

Seven personal purchases to explain, to us and, if they ever check, to HMRC.

“We are very fond of our clients. We would simply rather not know where you buy your socks.”
Larysa Brovchuk, founder of Kairos-K

How we work with you

Your MTD year, step by step

We set everything up, keep your records every month and file each update after you have seen the figures.

  1. 1

    Check and plan

    We confirm whether MTD applies to you and from which date, and which of your income it covers.

  2. 2

    Software

    We set up MTD software for you, or keep your records in ours if you prefer.

  3. 3

    Every month

    You send bank statements in CSV format, with invoices and receipts. We post them once a month and ask only about what is unclear.

  4. 4

    Every quarter

    We prepare your quarterly update and send it to you to approve before we file it with HMRC.

  5. 5

    Year end

    We prepare your final declaration, adding any other income such as a salary or investments.

  6. 6

    Tax and reminders

    You know the tax and the date to pay it, and we remind you before every deadline.

Your choice

We do it, or you learn to do it

Both routes keep you compliant. The difference is how much of the work you want to keep.

We keep your books

You send statements and receipts, we do the rest

  • Bank statement posted once a month
  • Income backed by invoices, costs by receipts
  • Quarterly updates prepared and filed after you approve
  • Final declaration at the end of the year

You keep them, we teach and check

One-to-one lessons at £60

  • We set up your software and show you how to use it
  • You file your own quarterly updates during the year
  • We check your records at the end, if you want us to
  • We prepare only your final declaration

Prices including VAT

Work out your MTD fee

For straightforward sole traders and landlords, such as tradespeople with simple costs and no staff. More complex businesses get a quote after a consultation.

Who keeps your records?
A transaction is every line on your statements, money in and money out: bank, card, Wise, PayPal, Stripe and marketplace payouts. Not sure? A typical small business with 2–3 card payments a day has around 50–80 transactions a month across all accounts. £3.42 per transaction posted. A separate business account keeps this number down.
Other income for your final declaration +£150 each

A salary alongside your self-employment adds nothing to the final declaration when we have filed your quarterly updates.

Your estimated fee, including VAT £153 a month

    An estimate from your answers. Your accountant confirms the exact fee in a free 15-minute Zoom meeting, once we have looked at your records.

    Book a free Zoom meeting

    Questions

    Making Tax Digital questions

    Scroll over them, use the arrows or select a question.

    It applies to sole traders and landlords whose qualifying income, meaning total turnover from self-employment and gross property income, is over £50,000 from 6 April 2026, based on the 2024–25 return. The threshold falls to £30,000 from April 2027, based on 2025–26, and to £20,000 from April 2028. If you have just started and have no return yet, you file an annual return first.

    Only self-employment and property income. Everything else, such as a salary, dividends, shares, interest, crypto or foreign income, goes into your final declaration after the end of the tax year.

    For standard quarters: 7 August, 7 November, 7 February and 7 May. The final declaration and any tax are due by 31 January after the end of the tax year. We send each update to you to approve before we file it.

    Under Making Tax Digital every business transaction has to be recorded digitally. A CSV statement can be imported straight into the software, so nothing is retyped and nothing is missed. PDF statements cannot be imported.

    It is not a legal requirement for sole traders, but it makes a big difference. If business and personal spending share one account, every personal transaction still has to be looked at and explained, which takes time, costs you more and draws questions if HMRC ever checks your records.

    Yes. We set up your software and teach you in one-to-one lessons at £60 a lesson. You then file your own quarterly updates during the year, and we can check your records and prepare only your final declaration at the end.

    Late quarterly updates earn penalty points, and once you reach the threshold a £200 penalty applies. In the first year, 2026/27, HMRC does not give points for late quarterly updates. Late payment of tax is charged separately. We remind you before every deadline.

    1 / 7

    Thresholds and dates as announced by HMRC and may change. Check current guidance on GOV.UK.

    Not sure if MTD applies to you?

    Tell us about your income

    We confirm your position and your fee within one business day.

    Ask us

    Guides

    Read before you decide

    Plain-English guides by our accountants on the questions clients ask us about this service.

    Making Tax Digital

    Making Tax Digital for Income Tax: are you ready?

    Read the guide →    Self Assessment

    Car expenses for the self-employed

    Read the guide →    E-commerce

    Marketplaces now report your sales to HMRC. What online sellers need to do

    Read the guide →    Starting a business

    Sole trader, Ltd, PLC, CIC or charity: which is right for you?

    Read the guide →