[AuRavelling79]

Earlier today - 23rd April 2025 - Mrs. Gold (who does my books) and I listened to the HMRC Webinar about this.

If you have any input or questions, this is the place to discuss.

I hasten to add I am no expert but I can share along with others what we have found out and refer to the Q&A from the Webinar.

[Soupy]

MTD won't be too much of an issue for me personally - I'm VAT registered and therefore have everything in place already for quarterly returns.

However, Mrs S is self employed, she will need to up her bookkeeping game somewhat. She already uses SAGE so won't have too much more to do. We have sub-contractors who work with us, they are going to have to start using some kind of accounting software. I'm advising them to use XERO although that's entirely up to them.

I have had discussions with my accountant regarding this, he is under the impression that this is going to be a world of s*** for all small businesses operating under the VAT threshold. If you have an accountant I advise you to speak to them now, like right away. Today. If not then I suggest that you get yourself some accounting software and start using it.

It'll be much easier for you to learn how to use XERO or SAGE or whatever when you don't have the added pressure of a looming quarterly return to submit.

[zesty]

Can you guys recommend what software to use. I have absolutely no idea what is best.

I’ve always done simple online tax returns and I don’t use any window cleaning software. I use my own ‘software’ for round scheduling etc.

I’ve been this way since starting at 18 years old. 

Be good to know what people recommend, and what is needed when the transition happens.

[Soupy]

I use sage but to be honest it's only because they were the only game in town when I started and I can't be arsed switching.

My accountant says Xero is the best bet. He says to stay away from QuickBooks.

[AuRavelling79]

Can you guys recommend what software to use. I have absolutely no idea what is best.

I’ve always done simple online tax returns and I don’t use any window cleaning software. I use my own ‘software’ for round scheduling etc.

I’ve been this way since starting at 18 years old. 

Be good to know what people recommend, and what is needed when the transition happens.

How do you do your Tax return now?

I don't know which software to recommend. My wife and I will look at it over the weekend to see what we will do.

Some software options are free and there are over a dozen on the Government Website.

https://www.gov.uk/guidance/find-software-thats-compatible-with-making-tax-digital-for-income-tax

[Bungle]

Earlier today - 23rd April 2025 - Mrs. Gold (who does my books) and I listened to the HMRC Webinar about this.

If you have any input or questions, this is the place to discuss.

I hasten to add I am no expert but I can share along with others what we have found out and refer to the Q&A from the Webinar.

How are the Turkish barbers going to cope?

[AuRavelling79]

Earlier today - 23rd April 2025 - Mrs. Gold (who does my books) and I listened to the HMRC Webinar about this.

If you have any input or questions, this is the place to discuss.

I hasten to add I am no expert but I can share along with others what we have found out and refer to the Q&A from the Webinar.

How are the Turkish barbers going to cope?

Probably checking the thresholds carefully?

[The Jester of Wibbly]

For basic self-employed businesses in the UK, complying with Making Tax Digital (MTD) doesn’t require overly complex software. Here’s a list of simple, MTD-compatible options that are affordable or even free:

1. HMRC-Recognized MTD Software (Simple Options)

These are ideal for sole traders with straightforward finances:

1.1. 123 Sheets

Type: Spreadsheet-based

Best for: People comfortable with Excel

Pros: Very simple, affordable (around £25/year)

MTD-compliant: Yes


1.2. QuickFile

Type: Cloud accounting

Pros: Free for small users (under 1,000 ledger entries per year)

Good for: Invoicing, expenses, VAT returns

MTD-compliant: Yes


1.3. FreeAgent (Free with NatWest/RBS business accounts)

Pros: User-friendly, good support

Free if: You bank with NatWest, RBS or Mettle

MTD-compliant: Yes


1.4. QuickBooks Self-Employed

Type: App-based, very beginner-friendly

Good for: Mileage tracking, invoices, expenses

Cost: Around £8/month

MTD-compliant: Yes


1.5. Xero Starter

Type: Cloud-based

Best for: Slightly more advanced users

Cost: Around £15/month

MTD-compliant: Yes



---

2. Bridging Software (If using spreadsheets)

If you want to keep using Excel, bridging software just connects your spreadsheet to HMRC for MTD VAT returns.

Examples:

VitalTax (Free add-on for Excel)

BTCSoftware

TaxCalc MTD for VAT



---

Recommendation for simplicity:

If you're looking for ultra-simple and cheap, try:

123 Sheets (spreadsheet upload + MTD)

QuickFile (if you want cloud-based)

FreeAgent (if you bank with NatWest/RBS/Mettle)


if you're not VAT-registered and just need MTD for Income Tax Self Assessment (MTD for ITSA), then things are a bit simpler — but also a bit limited, since MTD for ITSA is still rolling out.

Here are simple, MTD ITSA-ready tools suitable for basic self-employed income (like sole traders, freelancers, etc.):


---

1. FreeAgent

Best for: Simple bookkeeping + MTD ITSA

Free if: You bank with NatWest, RBS, or Mettle

Includes: Invoicing, expenses, bank feed, MTD-ready

MTD ITSA: Yes — one of the few already set up for it



---

2. Untied

Designed for: Self-employed & gig workers

Mobile-first: Easy to use via app

MTD ITSA-ready: Yes

Free plan available: With limitations, paid from £1.50/mo



---

3. 123 Sheets (Income Tax version)

Spreadsheet-based: If you like using Excel

Simple: Upload your income/expenses and submit

Cost: Around £30–£40/year

MTD ITSA-ready: Yes



---

4. GoSimpleTax

For: Non-VAT self-employed

Interface: Like filling in a tax return, but easier

Cost: Around £50/year

MTD ITSA-ready: Yes

[zesty]

Can you guys recommend what software to use. I have absolutely no idea what is best.

I’ve always done simple online tax returns and I don’t use any window cleaning software. I use my own ‘software’ for round scheduling etc.

I’ve been this way since starting at 18 years old. 

Be good to know what people recommend, and what is needed when the transition happens.

How do you do your Tax return now?

I don't know which software to recommend. My wife and I will look at it over the weekend to see what we will do.

Some software options are free and there are over a dozen on the Government Website.

https://www.gov.uk/guidance/find-software-thats-compatible-with-making-tax-digital-for-income-tax

Self assessment, so easy.

All done on HMRC self assessment website.

[dazmond]

Rob Morgan is building a new software program called 'overture' which hopefully will be an all in one solution to many of us sole trader window cleaners who just want to input one lot of data then submit this quarterly straight to HMRC without bridging software or having to input 2 lots of data(like I would if I stick with cleaner planner).

MTD doesn't come into affect for me until April 2027 because I'm just  under 50k a year(50k+ starts in April 2026)

[The Jester of Wibbly]

Don't over think it guys.

Most of us already keep records digitally on spreadsheets and databases anyway.

We just need to prepare it ready for quarterly totals for uploads to HMRC using a simple authorised software.

For us it's easy to keep digital outgoings but income for many small payments can be just totals....

under MTD for Income Tax, you can record income as daily, weekly, or monthly totals — as long as you’re doing it in digital format and your software supports it.

HMRC's guidance allows:

> “You can record totals of income and expenses daily, weekly or monthly — you don’t have to record every individual transaction.”



So if you receive multiple small payments, like:

10 sales in a day, or

50 payments through PayPal in a week


You don’t need to enter each one separately — you can just enter a daily or weekly total, as long as:

What’s required:

That total is recorded digitally (in software or spreadsheet)

It’s accurate and supported by backup (like your bank, PayPal, or Etsy report)

You keep those records in case HMRC ever asks for detail



---

Examples:

Etsy seller: “Sales total – 3rd April – £186.23”

Cash-in-hand worker: “Weekly total – w/c 8th April – £400”

PayPal earnings: “Monthly PayPal income – March – £1,050”


Then at the end of each quarter, your software adds up all your income and submits a summary to HMRC — not every transaction

[zesty]

Don't over think it guys.

Most of us already keep records digitally on spreadsheets and databases anyway.

We just need to prepare it ready for quarterly totals for uploads to HMRC using a simple authorised software.

For us it's easy to keep digital outgoings but income for many small payments can be just totals....

under MTD for Income Tax, you can record income as daily, weekly, or monthly totals — as long as you’re doing it in digital format and your software supports it.

HMRC's guidance allows:

> “You can record totals of income and expenses daily, weekly or monthly — you don’t have to record every individual transaction.”



So if you receive multiple small payments, like:

10 sales in a day, or

50 payments through PayPal in a week


You don’t need to enter each one separately — you can just enter a daily or weekly total, as long as:

What’s required:

That total is recorded digitally (in software or spreadsheet)

It’s accurate and supported by backup (like your bank, PayPal, or Etsy report)

You keep those records in case HMRC ever asks for detail



---

Examples:

Etsy seller: “Sales total – 3rd April – £186.23”

Cash-in-hand worker: “Weekly total – w/c 8th April – £400”

PayPal earnings: “Monthly PayPal income – March – £1,050”


Then at the end of each quarter, your software adds up all your income and submits a summary to HMRC — not every transaction

That’s good info.

[NBwcs]

Not really looked into  it yet and not looking forward to it tbh. I'm a creature of habit, I've used the same "hingston"  small accounts book since I started  out and I'm very comfortable with it. I was rather hoping  (naively) that  it would mean just doing 4 mini tax returns on line instead of one, didn't realise  I'd have to  change  to  an on line accounting  method  as well. I'm just getting to be an old fart.

[Soupy]

My accountant reckons it's a prelude to quarterly tax payments, a few years down the line.

That'll be fun.

[The Jester of Wibbly]

My accountant reckons it's a prelude to quarterly tax payments, a few years down the line.

That'll be fun.

Actually that would be better than those estimated credit demands they send us. 🤣

[Ched]

My accountant reckons it's a prelude to quarterly tax payments, a few years down the line.

That'll be fun.

MTD is being phased in depending on your turnover.
from April 2026, for those with qualifying income over £50,000
from April 2027, for those with qualifying income over £30,000
I too would bet that quarterly tax payments are on the way just like the way VAT payments work.

[zesty]

My accountant reckons it's a prelude to quarterly tax payments, a few years down the line.

That'll be fun.

MTD is being phased in depending on your turnover.
from April 2026, for those with qualifying income over £50,000
from April 2027, for those with qualifying income over £30,000
I too would bet that quarterly tax payments are on the way just like the way VAT payments work.

50,000 profit or turnover?

[The Jester of Wibbly]

My accountant reckons it's a prelude to quarterly tax payments, a few years down the line.

That'll be fun.

MTD is being phased in depending on your turnover.
from April 2026, for those with qualifying income over £50,000
from April 2027, for those with qualifying income over £30,000
I too would bet that quarterly tax payments are on the way just like the way VAT payments work.

50,000 profit or turnover?

It's Turnover. gross profit..

For me when ready I will be using 123 sheets.  Simple bridging spreadsheet costing £20 for the year. 

[Ched]

My accountant reckons it's a prelude to quarterly tax payments, a few years down the line.

That'll be fun.

MTD is being phased in depending on your turnover.
from April 2026, for those with qualifying income over £50,000
from April 2027, for those with qualifying income over £30,000
I too would bet that quarterly tax payments are on the way just like the way VAT payments work.

50,000 profit or turnover?

Turnover - not profit!

[Mattymarske]

My accountant reckons it's a prelude to quarterly tax payments, a few years down the line.

That'll be fun.

MTD is being phased in depending on your turnover.
from April 2026, for those with qualifying income over £50,000
from April 2027, for those with qualifying income over £30,000
I too would bet that quarterly tax payments are on the way just like the way VAT payments work.

50,000 profit or turnover?

It's Turnover. gross profit..

For me when ready I will be using 123 sheets.  Simple bridging spreadsheet costing £20 for the year.

Will 123 sheets work with George do you think?