What MTD ITSA software actually has to do
MTD ITSA stands for Making Tax Digital for Income Tax Self Assessment. The rules ask you to keep your business records digitally and to report to HMRC through compatible software instead of typing figures into the HMRC website by hand. So the first thing to understand about any MTD ITSA software is the specific work it needs to perform, because a spreadsheet on its own will not meet the requirement.
Three jobs matter. First, the software has to hold your income and expenses as digital records, kept up to date through the year rather than reconstructed each January. Second, it has to send HMRC a quarterly update, which is a running summary of your income and expenses for the period. Third, it has to submit the final declaration, the step that confirms your figures for the year and settles your tax position. The final declaration replaces the Self Assessment return you file today.
HMRC expects the flow of data from your records to your submission to be digital. In plain terms, you should not have to read a number off one system and retype it into another.
Good MTD ITSA software captures each transaction once and carries it through to the quarterly update and the final declaration without manual copying, which is exactly where errors tend to creep in.
Who needs MTD ITSA software, and from when
Making Tax Digital for Income Tax is arriving in stages, set by your qualifying income. Qualifying income means your total gross income from self-employment and property before expenses are deducted, so it is based on turnover, not profit. This catches people out, because you can cross a threshold on income while taking home considerably less.
- From 6 April 2026 Qualifying income above £50,000
Sole traders and landlords above this level must follow the rules and will need MTD ITSA software in place.
- From 6 April 2027 Qualifying income above £30,000
The threshold drops to this level.
- From 6 April 2028 Qualifying income of £20,000 or more
The rules extend to those at this level.
HMRC uses the figure from your most recent finalised Self Assessment return to decide when you join. If your combined self-employment and property income sits above £50,000, April 2026 is your deadline to be ready, and that is the point to have software chosen and tested well in advance. Leaving it until the first quarterly period has already started means learning a new routine under a live deadline, which is the harder way to do it.
A small number of people are excluded or can apply for an exemption, including those who genuinely cannot use digital tools. If you are close to a threshold, it is sensible to treat the earlier date as your planning target rather than hoping your income stays below the line.
What Quarterly Filer does
Quarterly Filer is built to HMRC's Making Tax Digital specification and connects through HMRC's official Making Tax Digital service. We are currently completing HMRC's recognition process. The design goal is a single, honest job: take your figures, keep them in the right shape, and file them on time. It does not try to be a full accounting suite, and it does not ask you to learn one.
Connect securely to HMRC
Link your account through HMRC's official Making Tax Digital service so your submissions go straight to the right place.
Import figures from CSV
Bring your income and expenses in from a spreadsheet or bank export, so you are not retyping numbers by hand.
File quarterly MTD updates
Prepare and submit each of your four updates to HMRC through the year, in the format the rules require.
Submission history
Every update you send is stored so you can see what was filed and when, without digging through emails.
Deadline reminders
The tool tracks your quarterly periods and prompts you before each deadline, which removes the risk of a missed submission and a penalty.
Support
If you get stuck, you can reach us through our contact form for help with the software.
That list is deliberately short. It covers the parts of Making Tax Digital for Income Tax that are compulsory, without the extra modules a sole trader rarely needs. If your bookkeeping already lives in a spreadsheet, Quarterly Filer sits on top of it and turns those figures into compliant quarterly submissions.
Choosing MTD ITSA software that fits a sole trader
There is a real difference between MTD ITSA software designed for accountants managing many clients and software designed for one sole trader managing their own affairs. The full accounting packages are capable, but they carry features you may never touch and a price to match. If your need is simply to record income and expenses and file the required updates, a lighter tool does the job with less to learn.
A few questions are worth asking of any option. Does it connect through HMRC's official service and file both the quarterly updates and the final declaration, or only part of the process? Can you get your existing figures in without rekeying them? Is the pricing a single, clear amount, or a set of tiers where the feature you need sits in a more expensive band? And is support available if a submission does not behave as expected?
Quarterly Filer answers those questions with a narrow, end-to-end tool. You connect to HMRC, bring in your figures, and file. There is one plan, so there is no puzzle about which tier covers quarterly filing. For a sole trader who wants to meet the rules without hiring an accountant to operate the software, that simplicity is the point.
What Quarterly Filer costs
Quarterly Filer is £49 a year, one payment that covers your whole tax year: your four quarterly updates and the year-end final declaration. Your first quarterly update is free, so you can connect to HMRC and file a real update before you decide. If you only need to file once, there is a £18 one-off single submission instead. There are no setup fees.
A single plan keeps the choice simple. Every feature listed above is included, so there is no higher tier that hides quarterly filing or the final declaration behind a bigger price. For most sole traders and landlords, the cost sits well below the ongoing fee of an accountant preparing the same submissions, and the routine of little-and-often bookkeeping is lighter than the yearly scramble it replaces.
Common questions about MTD ITSA software
Do I have to use software for MTD for Income Tax?
Yes. Once you are within Making Tax Digital for Income Tax, you must keep digital records and file your quarterly updates and final declaration through compatible software. You cannot type the figures into the HMRC website as you might for a Self Assessment return today, which is why MTD ITSA software is a requirement rather than a convenience.
Can I keep using my spreadsheet?
You can keep recording figures in a spreadsheet, but the spreadsheet alone cannot submit to HMRC. Quarterly Filer lets you import figures from CSV, so your existing spreadsheet feeds the quarterly updates without you retyping anything. The submission itself goes through the software to keep the digital link intact.
Does Quarterly Filer file the final declaration as well?
Yes. Quarterly Filer prepares your four quarterly updates and the final declaration, which is the step that confirms your income for the year and replaces the annual Self Assessment return. Because your quarterly figures roll into it, finishing the year is more of a review than a rebuild.
Is Quarterly Filer recognised by HMRC?
Quarterly Filer is built to HMRC's Making Tax Digital specification and connects through HMRC's official Making Tax Digital service. We are currently completing HMRC's recognition process. If you would like to be told when that step is finished, sign up and we will keep you posted.