MTD ITSA Accounting Software Integration

For Existing Accounting Software Users

This service is designed for sole traders and landlords who are already using accounting software and need it configured correctly for Making Tax Digital for Income Tax (MTD ITSA).

It provides a one-off review and setup to ensure digital records are maintained correctly and quarterly submissions to HMRC can be made using MTD-compatible accounting software.

👉 Book a meeting to confirm suitability and receive a fixed-fee quote

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What does MTD ITSA Accounting Software Do?

MTD ITSA compliant accounting software:

• Hold your digital records as your accounting records

• Summarises your digital records in a format suitable to transmit to HMRC

• Submits quarterly updates, End of Period Statements (EOPS), and Final Declarations

• Maintains the digital links required by HMRC

if your accounting software is compatible with MTD ITSA, you will just need to make sure it is configured correctly, not changing software or processes unnecessarily.

👉 Discuss whether the current setup is suitable for MTD ITSA

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Who This Service Is Suitable For

This service is suitable for:

• Sole traders or Landlords already using accounting software

• Users preparing for MTD ITSA who want assurance their setup is correct

• Clients who manage their own bookkeeping but want compliant systems

This service is not suitable for:

• Those using spreadsheets only

• Those not yet using accounting software

For users who are interested in moving to using accounting software, see:

👉 MTD ITSA Accounting Software Setup – First-Time Users ‍ ‍

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How MTD ITSA Submissions Work Using Accounting Software

1. You record income and expenses in your accounting software

2. Transactions are categorised using your chart of accounts

3. Your software maintains digital records and audit trails

4. You use the accounting software to submit Quarterly updates directly to HMRC

5. EOPS and Final Declaration are completed within the software

Quarterly updates are reporting updates only and do not generate tax bills.

👉 Talk through how quarterly submissions will work in practice

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MTD ITSA Accounting Software Setup – One-Off Service

This is a one-time setup and review service to ensure your existing accounting software is MTD ITSA ready.

What the Setup Includes

• Advice about general digital record keeping

• Review and advice on compatibility of your existing accounting software

• Review and advice on the compatibility of your income and expense categorisation with MTD ITSA

• Set up of HMRC integration and authorisation

• Verification of digital links and reporting structure

• Walkthrough of quarterly submission process

What the Setup Does Not Include

• Ongoing bookkeeping or transaction entry

• Preparation or submission of quarterly updates

• Ongoing compliance monitoring or tax advice

Ongoing services are available separately if required. (Learn more)

👉 Discuss booking an accounting software setup

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Advantages and Limitations of Using Accounting Software for MTD ITSA

Advantages

• continues using familiar systems and processes

• Automated digital records

• Direct integration with HMRC (everything is in one place)

• Stronger audit trails than spreadsheets

• Lower long-term compliance risk

• Some software have error detection

Limitations

• Can be hard to trace how the figures are generated

• it can sometimes be hard to identify the course of and solve errors or submission failures

• it is easier to forget the steps to complete the submission.

Accounting software is often the most robust option for MTD ITSA, provided it is set up and used correctly.

👉 Confirm the current setup is fit for purpose

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Important Compliance Considerations

• Digital records must be complete and accurate

• Incorrect categorisation can affect submissions

• HMRC penalties apply for late or incorrect filings

• Setup errors can persist across multiple quarters

Correct configuration from the outset significantly reduces future compliance issues.

👉 Check compliance before the first MTD submission

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Why Use Circular3?

Choosing the right approach for MTD ITSA is as important as the software itself. Circular3 focuses on getting the setup right, not pushing a particular product or platform.

• Solution-agnostic advice

  Recommendations are based on what fits the circumstances, not on preferred software or commercial incentives.

• Extensive accounting software setup experience

  Practical experience configuring accounting software for landlords and sole traders, including chart of accounts, categorisation, and HMRC integration.

• Focus on correct setup, not shortcuts

  Systems are configured to meet MTD ITSA requirements properly, reducing avoidable issues later.

• Clear scope and fixed fees

  One-off setup services are clearly defined, with no implied ongoing commitment.

• Compliance-first approach

  Emphasis on digital records, audit trails, and reducing HMRC risk.

The aim is to provide a setup that works in practice and supports MTD ITSA compliance without unnecessary complexity.