Making Tax Digital for Income Tax has shifted the conversation for sole traders. Much of the noise focuses on quarterly updates, deadlines, digital records and submission frequency.
But in reality, quarterly reporting is the easy part. The real challenge comes months later, when figures must stand up to year-end adjustments, accountant review and HMRC scrutiny.
This is where the choice of MTD software for sole traders matters far more than most people realise.
Quarterly submissions don’t equal correct tax
HMRC’s MTD framework requires sole traders to submit quarterly updates, but these are not final tax calculations. They are snapshots, not settlements. Income may be miscategorised, expenses may be incomplete and allowances are often estimated or ignored altogether.
Many low-cost or “submission-only” tools make quarterly updates feel deceptively simple. Numbers go in, totals go out and a green tick appears. But that same simplicity becomes a liability at year’s end, when accountants have to unpick months of poorly structured data.
Accountants don’t just want software that files updates. They want MTD compatible software that produces clean, reconcilable, audit-ready records from day one.
Why accountants distrust most entry-level MTD tools
Ask any accountant what slows down year-end work and the answer is rarely “missed deadlines”. It is inconsistent data.
Problems typically arise when:
- expenses are lumped into vague categories,
- income streams are merged incorrectly,
- private and business use is not separated properly,
- or records lack supporting context.
Most basic tools are built to satisfy HMRC’s minimum digital requirements, not real-world accounting needs. That gap between “compliant” and “correct” is where costs, delays and stress creep in.
Why RentalBux stands out as MTD software for sole traders
RentalBux is not a lightweight filing tool pretending to be accounting software. It is a full HMRC Free MTD Software handling everything sole traders could possibly need.
For sole traders, especially those with mixed or property-related income, RentalBux offers:
- structured income and expense tracking that aligns with HMRC and accountant expectations,
- automated summaries that make quarterly updates straightforward without distorting year-end figures,
- support for property income alongside self-employed earnings,
- and clean reports accountants can actually rely on.
Crucially, RentalBux removes the disconnect between quarterly updates and the Self Assessment Tax Return. The same data used for MTD submissions supports final tax calculations, reducing corrections and professional fees.
This is why many advisers are increasingly recommending RentalBux as MTD software for sole traders who want fewer surprises at year end.