Prepare your records for Making Tax Digital.
LedgerlyPro organises digital bookkeeping records and prepares quarterly figures for review. Its MTD Income Tax connection is currently in HMRC sandbox testing, with production access pending. £9.99/month with a 30-day free trial.
No card needed. Takes under 60 seconds.
- Digital income and expense records
- Cumulative quarterly figures for review
- MTD Income Tax integration in HMRC sandbox testing
- Production access and live ITSA submissions pending
- Current ITSA scope: in-year self-employment only
- £9.99/month with a 30-day free trial, cancel anytime
Features
Digital bookkeeping records
Record income and expenses digitally and keep the underlying entries available for review.
In-year figures
Prepare cumulative self-employment income and expense figures for quarterly review.
Deadline visibility
See upcoming obligations and reminders, while remaining responsible for checking and meeting HMRC deadlines.
CSV and Excel imports
Import transaction data, then review and reconcile it before relying on the figures.
Making Tax Digital, in plain English
Making Tax Digital (MTD) requires affected businesses to keep digital records and use compatible software to send information to HMRC. It already applies to VAT and is being introduced for Income Tax according to qualifying-income thresholds.
For Income Tax, quarterly updates are summaries of income and expenses; they do not replace the annual tax return. Digital links may be required when records move between products, so a spreadsheet-based process must be assessed as a whole rather than assumed to be compliant or non-compliant.
Who needs to comply, and when
| You are… | MTD requirement | From |
|---|---|---|
| VAT-registered | MTD for VAT | Already mandatory |
| Self-employed/landlord, qualifying income > £50k | MTD for Income Tax | April 2026 |
| Self-employed/landlord, qualifying income > £30k | MTD for Income Tax | April 2027 |
| Self-employed/landlord, qualifying income > £20k | MTD for Income Tax | April 2028 |
Qualifying income and exemptions are determined under HMRC's rules. Do not stop quarterly updates solely because one year's income falls below a threshold; HMRC generally requires three consecutive years below the relevant threshold and confirmation through the customer's HMRC account.
What Making Tax Digital means for you, with deadlines and examples.
What LedgerlyPro supports today
- Bookkeeping records and figures prepared from LedgerlyPro transactions
- HMRC sandbox connection for in-year self-employment obligations and cumulative updates
- Customer review before any sandbox submission
- Production access and live MTD Income Tax submissions are not yet enabled
- Final annual tax returns, property income and agent filing are outside the current ITSA scope
Registering for Self Assessment, signing up for MTD Income Tax and authorising LedgerlyPro are separate steps. New individual customers using HMRC's current online registration service can receive their UTR in their online account within 72 hours. Customers starting MTD in 2026–27 must still submit their 2025–26 Self Assessment return and pay any tax due by 31 January 2027.
How LedgerlyPro helps you prepare
- Captures income and expenses digitally from CSV or Excel imports and receipts
- Keeps transaction records available for review and export
- Calculates cumulative quarterly income and expense figures
- Displays reminders without guaranteeing that a deadline cannot be missed
- Allows accountant access to review records; agent filing is not part of the current ITSA scope
You remain responsible for checking the records, confirming which HMRC rules apply and submitting complete and accurate information on time. LedgerlyPro does not replace HMRC guidance or professional advice.
Sole trader bookkeeping software · Bookkeeping software UK
Frequently asked questions
What is MTD-compatible software?
Compatible software must keep or connect to digital records and support the relevant information exchange with HMRC. LedgerlyPro currently helps organise digital records and prepare in-year self-employment figures; its MTD Income Tax submission connection remains in HMRC sandbox testing while production access is pending.
Who has to follow Making Tax Digital?
VAT-registered businesses already follow MTD for VAT. MTD for Income Tax applies to sole traders and landlords with qualifying income over £50,000 from April 2026, over £30,000 from April 2027, and over £20,000 from April 2028.
Do quarterly updates replace the Self Assessment tax return?
No. Quarterly updates are summaries of income and expenses. Customers must still submit their annual tax return and pay tax by the applicable deadline. LedgerlyPro's current MTD Income Tax scope does not submit the final annual tax return.
Can I opt out after one low-income year?
Not usually. HMRC generally requires qualifying income below the relevant threshold for three consecutive years. Keep meeting your obligations until HMRC confirms an opt-out in your online account.
Is there a free trial?
Yes — try the platform free for 30 days, no card required. LedgerlyPro Premium is then £9.99/month.
Read: Making Tax Digital explained for sole traders.
Self-employed? Sole trader bookkeeping software.
View pricing — £9.99/month with a 30-day free trial.
Prepare digital bookkeeping records free for 30 days
Organise your records and review quarterly figures. No card required.
Create free accountNo card needed. Takes under 60 seconds.
