Making Tax Digital Cushion Planner for Trades
MTD ITSA goes live April 2026. Quarterly submissions can smash cash flow if you don’t ring-fence funds. Use this plan to stay ready.
Sole traders impacted
≈1.7m
HMRC estimates
Quarterly filings
4 + EOPS
MTD ITSA
Example tax rate
~19%
Typical small-company rate
⚠️ Important Disclaimer
This guide is for general informational and educational purposes only. It does not constitute professional advice of any kind (legal, financial, tax, insurance, or otherwise).
Before making business decisions: Consult with qualified professionals (solicitors, accountants, insurance brokers, etc.) who can assess your specific circumstances. Laws, regulations, and industry standards change frequently and vary by location and situation.
Toolfy and the article authors accept no liability for decisions made or actions taken based on information provided in this guide. You are solely responsible for ensuring compliance with all applicable laws and regulations.
Making Tax Digital record-keeping requirements for trades
- Digital records of income/expense per job with no manual copy/paste.
- Quarterly updates + end-of-period statement + final declaration.
- Evidence pack kept for 5 years—Toolfy stores Idempotency-Key hashed exports.
Calculate your buffer
MTD cushion
MTD ITSA Buffer Planner
Work out the cash you should ring-fence before quarterly filings hit.
Recommended buffer
£6,156
Quarterly tax
£6,156
Monthly set-aside
£2,052
Buffer target
£6,156
3 months
Implementation checklist
Toolfy automation stack
- Invoice + payout sync to Xero/QuickBooks with tax codes.
- Quarterly reminder tasks for director/owner.
- Slack alerts when buffer falls below threshold.
Next step
Let’s build your MTD cockpit.
Book a session and we’ll wire Toolfy → ledger exports, buffers, and reminders.