Making Tax Digital (MTD) is transforming how sole traders manage their finances in the UK. From April 2026, all eligible sole traders will be required to submit quarterly updates to HMRC using MTD-compliant software.
While compliance is mandatory, many sole traders struggle with the practicalities of organising income and expenses accurately. This is where RentalBux provides a significant advantage with its pre-built, HMRC-aligned chart of accounts.
Why a Pre-Built Chart of Accounts Matters
A chart of accounts is the backbone of any accounting system. It categorises all income and expenses, ensuring that financial data is organised and compliant with tax regulations. RentalBux comes with a pre-built chart of accounts specifically designed for sole traders, meaning you don’t have to spend hours setting up categories or worrying about HMRC compliance.
Key advantages include:
- Time-saving setup: Start recording transactions immediately without building accounts from scratch.
- HMRC alignment: All categories are pre-configured to meet Making Tax Digital requirements.
- Accuracy and consistency: Reduce errors in categorisation, ensuring smoother quarterly submissions.
- Flexibility for multiple income streams: Manage self-employment income alongside other sources, including rental or freelance earnings.
By using a pre-built chart of accounts, sole traders can focus on running their business rather than worrying about complex bookkeeping.
How RentalBux Goes Beyond Compliance
While Making Tax Digital for Income Tax for sole traders compliance is essential, RentalBux offers a full suite of features to simplify accounting:
- Automated categorisation: AI-powered features that are coming soon, such as auto-categorisation and OCR bill capture, reduce manual effort.
- Bank feeds and reconciliations: Automatically match transactions to categories in the pre-built chart of accounts.
- Full accounting functionality: Track invoices, purchases, expenses, and financial reporting in one platform.
- Scalability: Whether you have a single freelance project or multiple income streams, RentalBux grows with your business.
This combination of MTD compliance and practical accounting features ensures sole traders can file accurate quarterly updates while also managing their finances efficiently.
Conclusion
For sole traders preparing for Making Tax Digital for Income Tax, having a structured, reliable accounting system is crucial. While basic MTD software can handle submissions, it doesn’t offer the organisation, automation, and reporting needed for efficient financial management.
RentalBux, with its pre-built chart of accounts, full accounting suite, AI-powered automation, and HMRC-aligned compliance, ensures that sole traders can manage their finances accurately and efficiently. By combining compliance with practical features, RentalBux transforms MTD from a regulatory burden into a seamless part of running a successful business.
