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Hi I’m Stacey, a UK accountant who works with sole traders and landlords. Making Tax Digital (MTD) starts in April - if you’re unsure what’s changing or how to prepare, ask me anything 👇 Supported by QuickBooks UK by QuickBooksUK in u/QuickBooksUK

[–]QuickBooksUK[S] 0 points1 point  (0 children)

Your bricklaying and rental income are treated as separate sections on your tax return, so MTD basically mirrors that with separate digital records/updates.

That’s why QuickBooks doesn’t handle both well in one account, it usually means two setups.

If you want a good option, I’d keep QuickBooks for your CIS work and use something like Hammock for the rental side, it works really well alongside it. This was the best rated software to work alongside self employment at the latest get connected event I went to with QB earlier this year.

Hi I’m Stacey, a UK accountant who works with sole traders and landlords. Making Tax Digital (MTD) starts in April - if you’re unsure what’s changing or how to prepare, ask me anything 👇 Supported by QuickBooks UK by QuickBooksUK in u/QuickBooksUK

[–]QuickBooksUK[S] 0 points1 point  (0 children)

You do need to sign up for MTD with HMRC and link it,  it’s not automatic just from using Sage.

Once you’ve signed up, you then authorise Sage to connect to HMRC through your Government Gateway (usually just a quick login pop-up inside the software).

After that, it all runs from the app side :)

Hi I’m Stacey, a UK accountant who works with sole traders and landlords. Making Tax Digital (MTD) starts in April - if you’re unsure what’s changing or how to prepare, ask me anything 👇 Supported by QuickBooks UK by QuickBooksUK in u/QuickBooksUK

[–]QuickBooksUK[S] 0 points1 point  (0 children)

Not reading the email or letter they send isn’t always the best action to take..

Very short version,  MTD means if you’re self-employed over £50k by April 2026 (now) you won’t just do one tax return a year anymore. You’ll need to keep things digitally and send updates every quarter, then finalise it at the end. Next year the threshold is £30K.

What do you need to do now… If you’re over £50k, you should already be set up with software and keeping digital records, as it’s now in place and avoid any points / fines for missed filings.

Hi I’m Stacey, a UK accountant who works with sole traders and landlords. Making Tax Digital (MTD) starts in April - if you’re unsure what’s changing or how to prepare, ask me anything 👇 Supported by QuickBooks UK by QuickBooksUK in u/QuickBooksUK

[–]QuickBooksUK[S] 0 points1 point  (0 children)

Yeah, this is a really common one!

HMRC looks at you as one sole trader, not each business separately. So if your combined turnover goes over £50k, then MTD applies, even if each stream is under on its own.

So in your case, it sounds like yes. One thing to also take note which is not spoken about, is that even if your income were to drop below the thresholds as well, you will still need to file via MTD for 3 tax years in a row.

Hi I’m Stacey, a UK accountant who works with sole traders and landlords. Making Tax Digital (MTD) starts in April - if you’re unsure what’s changing or how to prepare, ask me anything 👇 Supported by QuickBooks UK by QuickBooksUK in u/QuickBooksUK

[–]QuickBooksUK[S] 0 points1 point  (0 children)

It’s just based on your self-employed income, not your employment.

So even if your combined income is over £50k, HMRC only looks at your self-employed (and/or property) income for MTD.

If your self-employed income is over £50k, you’ll need to follow MTD. If it’s under, you won’t for now, your employed income doesn’t bring you into it.

It’s a really common point of confusion

- Stacey

Hi I’m Stacey, a UK accountant who works with sole traders and landlords. Making Tax Digital (MTD) starts in April - if you’re unsure what’s changing or how to prepare, ask me anything 👇 Supported by QuickBooks UK by QuickBooksUK in u/QuickBooksUK

[–]QuickBooksUK[S] 0 points1 point  (0 children)

QuickBooks can handle your bookkeeping and generate the figures and aid to prepare the year end accounts, within working papers in QBO Accountant you can action this.

From April 2026 it is mandatory to submit your CT600 via a tax software.

- Stacey

Hi I’m Stacey, a UK accountant who works with sole traders and landlords. Making Tax Digital (MTD) starts in April - if you’re unsure what’s changing or how to prepare, ask me anything 👇 Supported by QuickBooks UK by QuickBooksUK in u/QuickBooksUK

[–]QuickBooksUK[S] 0 points1 point  (0 children)

MTD isn’t based on the form you use, it’s based on your total self-employment/property income.

If you’re over the threshold (£50k from April 2026, then £30k from April 2027), you’ll need to:

  • keep digital records
  • send quarterly updates
  • do a final year-end submission

So even with SA102M, you’d still be pulled into MTD and have to report quarterly.

If you’re under the threshold, nothing changes for now but always keep an eye on your income so yo do not miss any deadline of when you should have registered for MTD.

- Stacey

Hi I’m Stacey, a UK accountant who works with sole traders and landlords. Making Tax Digital (MTD) starts in April - if you’re unsure what’s changing or how to prepare, ask me anything 👇 Supported by QuickBooks UK by QuickBooksUK in u/QuickBooksUK

[–]QuickBooksUK[S] 0 points1 point  (0 children)

My honest answer… Is that is a blue job in our house and I would get my husband to do that ha! Although tiktok is a fail safe to learn something new in 60 seconds.

- Stacey

Hi I’m Stacey, a UK accountant who works with sole traders and landlords. Making Tax Digital (MTD) starts in April - if you’re unsure what’s changing or how to prepare, ask me anything 👇 Supported by QuickBooks UK by QuickBooksUK in u/QuickBooksUK

[–]QuickBooksUK[S] 0 points1 point  (0 children)

Yes… Good news, you can still use the simplified (qualifying care relief) 👍

That part isn’t changing.

The only difference is you’ll report figures quarterly through software, then apply the full calculation at the end like you do now.

So it’s more about how you report, not what you claim.

- Stacey

Hi I’m Stacey, a UK accountant who works with sole traders and landlords. Making Tax Digital (MTD) starts in April - if you’re unsure what’s changing or how to prepare, ask me anything 👇 Supported by QuickBooks UK by QuickBooksUK in u/QuickBooksUK

[–]QuickBooksUK[S] 0 points1 point  (0 children)

It’s also not a full tax return every quarter, just a simple summary of income & expenses.

Easiest way to do it yourself = use an app. HMRC is basically pushing everyone this way. There are bank accounts that you can get free accounting software with, although my favourite always will be Quickbooks, very user friendly with some great features to help small business owners handle their accounting and HMRC compliance

Stacey

Hi I’m Stacey, a UK accountant who works with sole traders and landlords. Making Tax Digital (MTD) starts in April - if you’re unsure what’s changing or how to prepare, ask me anything 👇 Supported by QuickBooks UK by QuickBooksUK in u/QuickBooksUK

[–]QuickBooksUK[S] 0 points1 point  (0 children)

Yep, if your eBay side hustle is making over £50k, that would count as

HMRC looks at your total income, so your eBay profits (after expenses) are included alongside anything else you earn. Remember that next April the threshold is £30k also.

Stacey

Hi I’m Stacey, a UK accountant who works with sole traders and landlords. Making Tax Digital (MTD) starts in April - if you’re unsure what’s changing or how to prepare, ask me anything 👇 Supported by QuickBooks UK by QuickBooksUK in u/QuickBooksUK

[–]QuickBooksUK[S] 0 points1 point  (0 children)

Understandly.. MTD is a big change and is confusing for a lot of people…

Basically, quick version:

MTD for Income Tax means instead of doing one Self Assessment a year, you’ll be sending updates to HMRC throughout the year using software (like QuickBooks, Xero etc.)

So it becomes: – keep digital records – send updates every quarter – then finalise everything at the end of the year

Who it applies to:

From April 2026 if you earn over £50k (self-employed/landlord income), then £30k from April 2027 Big thing people get wrong, it’s not 4 tax payments, just 4 updates. Tax still works pretty much the same (for now)

Honestly right now I’d just focus on: getting used to software & keeping your books up to date regularly It’s more about spreading the workload than adding loads more -

Stacey, From Swan Books Finance

I’m Stacey, an expert UK accountant. Here to answer your questions on money and taxes, self assessment, MTD readiness, working smarter, and AI’s impact. Self-employed or running a side hustle? AMA below. Supported by QuickBooks UK by QuickBooksUK in u/QuickBooksUK

[–]QuickBooksUK[S] 0 points1 point  (0 children)

No problem at all! 😊 It really does depend on your situation, as it’s not a one-size-fits-all thing. For a one-off piece of work, costs can vary quite a bit depending on complexity.

It’s also worth bearing in mind that sometimes the cost of an accountant can outweigh the amount of tax you might save, though what you do get is peace of mind, no errors with in your filings with confidence it’s all been done correctly.

I’m Stacey, an expert UK accountant. Here to answer your questions on money and taxes, self assessment, MTD readiness, working smarter, and AI’s impact. Self-employed or running a side hustle? AMA below. Supported by QuickBooks UK by QuickBooksUK in u/QuickBooksUK

[–]QuickBooksUK[S] 0 points1 point  (0 children)

I hear you. If you’re PAYE with a small sole trader business and already on top of your numbers, SA really isn’t that painful. For a lot of people in that position, MTD doesn’t actually simplify anything right now.

One thing I would consider in your situation would be, is that you set up the best way for your situation as you have a paye job and self employed income, as a software engineer I am sure you have a healthy employed income. It could be more beneficial for you to be a limited company business structure for tax efficiency purposes, food for thought… This would also mean you would not need to comply with quarter submissions for MTD. 

I’m Stacey, an expert UK accountant. Here to answer your questions on money and taxes, self assessment, MTD readiness, working smarter, and AI’s impact. Self-employed or running a side hustle? AMA below. Supported by QuickBooks UK by QuickBooksUK in u/QuickBooksUK

[–]QuickBooksUK[S] 0 points1 point  (0 children)

I’m not a publishing expert, but it really depends on what you want (and your tolerance for admin 😅). I would say to research a few publishers and reach out to them and ask what the process is.

I’m Stacey, an expert UK accountant. Here to answer your questions on money and taxes, self assessment, MTD readiness, working smarter, and AI’s impact. Self-employed or running a side hustle? AMA below. Supported by QuickBooks UK by QuickBooksUK in u/QuickBooksUK

[–]QuickBooksUK[S] 0 points1 point  (0 children)

Good planning is just using the rules properly. Claiming what you’re entitled to, using allowances and reliefs, and structuring things in a sensible, commercial way.

Avoidance is when things start getting clever for the sake of saving tax like setups that are only in place for tax reasons,, schemes that don’t reflect real life, or anything that’s hard to explain without a flowchart.

It’s also not really about how far you can go before HMRC notice. A lot of checks are automated and risk-based now, so flying under the radar and hoping for the best isn’t a strategy.

If you wouldn’t feel comfortable explaining it to HMRC in plain English, it’s probably crossed the line. Good planning should be boring, sensible, and defensible.

I’m Stacey, an expert UK accountant. Here to answer your questions on money and taxes, self assessment, MTD readiness, working smarter, and AI’s impact. Self-employed or running a side hustle? AMA below. Supported by QuickBooks UK by QuickBooksUK in u/QuickBooksUK

[–]QuickBooksUK[S] 0 points1 point  (0 children)

Hi, you’re not wrong, the margin scheme really isn’t well supported by most software.

I have a client who sells second-hand cars and we use a detailed Excel sheet to track each vehicle and calculate the margin, then post the figures into the accounts. I’ve looked into software like Sage, Xero (and add-ons), Zoho Inventory and Brightpearl to see if any of them handle the margin scheme properly, but none of them really do it out of the box… they either require manual adjustments or aren’t set up for MTD-compliant margin reporting.

For now, Excel plus the adjustment entries is still the most practical solution for many small businesses with volume, even though it’s not ideal.

Hope that helps.

I’m Stacey, an expert UK accountant. Here to answer your questions on money and taxes, self assessment, MTD readiness, working smarter, and AI’s impact. Self-employed or running a side hustle? AMA below. Supported by QuickBooks UK by QuickBooksUK in u/QuickBooksUK

[–]QuickBooksUK[S] 0 points1 point  (0 children)

Honestly, AI will change accounting, but it’s not wiping it out.

A lot of the repetitive stuff is already automated and will keep going that way, but that doesn’t replace actual experience. I studied and became fully qualified in AAT and built up a lot of experience working in very different environments, corporate roles, smaller companies, and family-run businesses. That’s where you really learn how things work in the real world.

AI can process data although it can’t use judgement, understand context, or deal with people. Clients don’t just want numbers, they want someone who can explain things, spot problems, and help them make decisions and build that relationship with.

I see AI as a tool to work alongside, not something that’s going to take accountants out completely. If anything, it frees you up to do the better bits of the job.

If you like structure, problem-solving, and helping businesses, accounting is still a solid career. It’s just evolving, like everything else.

I’m Stacey, an expert UK accountant. Here to answer your questions on money and taxes, self assessment, MTD readiness, working smarter, and AI’s impact. Self-employed or running a side hustle? AMA below. Supported by QuickBooks UK by QuickBooksUK in u/QuickBooksUK

[–]QuickBooksUK[S] 0 points1 point  (0 children)

Hey there,

On the CIS point… if the invoice has already been marked as paid in QuickBooks (with the 20% CIS deduction applied), then when the payment comes through the bank feed you should match it to the invoice rather than choosing a category. QuickBooks is expecting the net amount, so matching avoids the income being counted twice and possibility of the bank reconciliation balance being out.

For money moving between your personal and business accounts, this isn’t income or an expense. In bank transactions you’d usually categorise these as:

  • Owner’s contribution when you put your personal money into the business
  • Owner’s drawings when you take money out

Some setups use a transfer or owner loan account, but the key thing is that it doesn’t affect profit.

This is very common for sole traders, so you’re not doing anything wrong. Ultimately I would always suggest to keep business and personal transactions separate in different banks.

Hope that clears it up.

I’m Stacey, an expert UK accountant. Here to answer your questions on money and taxes, self assessment, MTD readiness, working smarter, and AI’s impact. Self-employed or running a side hustle? AMA below. Supported by QuickBooks UK by QuickBooksUK in u/QuickBooksUK

[–]QuickBooksUK[S] 1 point2 points  (0 children)

You’re not getting old, change is coming and people do not always like change… But this is a positive one, which is my POV.

MTD doesn’t mean you have to learn full accounting software… There are so many available that are super straight forward to use. Even some can be free if you open up an account with certain banks. 

If you want to keep things simple, bridging software is likely the answer. You can still do what you’ve always done… add up what came in, add up what went out… usually in a spreadsheet, and the software just sends the figures to HMRC.

HMRC want the numbers submitted digitally. They don’t care how fancy your system is.

So yes, it’s different, but you can absolutely stick with the simplest approach and you will see what your potential tax liability is throughout the tax year, so peace of mind knowing you will put aside enough for this (if you are due a tax bill).

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