Making Tax Digital for online sellers, from books already kept monthly.
MTD for Income Tax tests your gross sales, not your profit, so many sellers are in sooner than they expect. We keep your books monthly in compatible software, send each quarterly update, then your final return. Included in every plan, from £89 a month.
- Over £50,000 from 6 April 2026
- Over £30,000 from 6 April 2027
- In every plan, from £89 a month
In short
Sole traders use Making Tax Digital for Income Tax when their qualifying income is over £50,000 (from 6 April 2026), £30,000 (from 6 April 2027) or £20,000 (from 6 April 2028). Qualifying income is turnover before expenses, so for a seller it is gross sales. Quarterly updates are due by 7 August, 7 November, 7 February and 7 May.
The test is your gross sales.
| Qualifying income | In this tax year | You use MTD from |
|---|---|---|
| Over £50,000 | 2024 to 2025 | 6 April 2026 |
| Over £30,000 | 2025 to 2026 | 6 April 2027 |
| Over £20,000 | 2026 to 2027 | 6 April 2028 |
Qualifying income is your total income from self-employment and property, before expenses. Employment income, dividends, pensions and partnership shares do not count. HMRC checks your qualifying income from your Self Assessment return each tax year. Some people are exempt; GOV.UK lists who.
A seller with modest profit can still be in.
Because the test is before expenses, marketplace fees and stock costs do not bring you under it.
| Line | Amount |
|---|---|
| Amazon UK gross sales | £24,000 |
| Etsy gross sales | £8,500 |
| Qualifying incometurnover before expenses | £32,500 |
| Trading profit after fees and stocknot part of the test | £9,800 |
Sample · demo seller, not a client · over £30,000 in 2025 to 2026, so MTD from 6 April 2027 · total added up from the rows above
Four updates, then your final return.
| Update | Due by |
|---|---|
| First | 7 August |
| Second | 7 November |
| Third | 7 February |
| Fourth | 7 May |
Each update covers the tax year so far and holds totals for each income and expense category. GOV.UK says no accounting or tax adjustments are needed before an update. The deadlines are the same if you elect calendar quarters, which you choose before your first update.
Monthly books make the quarters routine.
- 01
Monthly reconciliation
Each payout split into sales, refunds, fees and advertising, and matched to your bank.
- 02
Quarterly update
The category totals sent from compatible software by each deadline, after you approve them.
- 03
Final return
The year's adjustments and your tax return, prepared and filed after you approve it.
MTD for Income Tax is part of every plan.
Selling on several channels at higher volume? Scale at £349 a month adds monthly management reports. Software setup with A2X or Link My Books and Xero is £349.
Your quarterly updates and final return
- Monthly bookkeeping with payout reconciliation
- Records kept in MTD-compatible software
- Each quarterly update sent after you approve it
- Your final return at the year end
Prices in pounds sterling (GBP). The UK VAT treatment of our fees is shown on your invoice.
MTD questions from online sellers.
Answered from the GOV.UK pages listed under Sources, with the date we read them.
Is the MTD test on profit or sales?
On qualifying income: your turnover from self-employment and property before expenses. For a seller, that is gross sales.
I sell on Amazon and Etsy. Do I add them together?
Yes. Qualifying income is your total self-employment and property income, so sales across all your channels count together.
When are the quarterly updates due?
By 7 August, 7 November, 7 February and 7 May. Each one covers the tax year so far.
Do I still file a Self Assessment return?
Yes. After the four updates you send a final return for the year, which we prepare from the same books.
What does it cost?
MTD for Income Tax is included in every plan, from £89 a month with monthly bookkeeping.
Sources
- GOV.UK: Check if you're eligible for Making Tax Digital for Income Tax · read 17 Oct 2026
- GOV.UK: Work out your qualifying income for Making Tax Digital for Income Tax · read 17 Oct 2026
- GOV.UK: Use Making Tax Digital for Income Tax — Send quarterly updates · read 17 Oct 2026
- GOV.UK: Overview of Making Tax Digital · read 17 Oct 2026
Tell us your channels and sales. You'll know if MTD applies.
A 20-minute call or a short email, then a written quote for your books, your updates and your final return.
A written quote before any work starts
Hours: Monday to Friday, 9am to 5pm UK time.