MTD for Market Traders and Cash Businesses
Market traders and cash businesses face a unique MTD challenge: most of your transactions do not go through a bank account. Here is how to stay compliant.
Cash Transactions and Digital Records
MTD requires digital records regardless of how you receive payment. Cash sales, card payments, and bank transfers all need to be recorded in your software.
For cash transactions, you need to:
- Record each sale (or a daily total if individual sale recording is impractical)
- Enter cash purchases manually
- Keep a till roll or daily cash summary as supporting evidence
Daily Cash Summaries
HMRC accepts daily totals rather than individual transaction records for cash businesses. At the end of each trading day:
- Total your cash sales
- Enter the daily total into your software
- Record any cash purchases
- Bank your takings and reconcile with your bank feed
Tips for Market Traders
- Use a card reader where possible — card transactions appear in your bank feed automatically
- Enter daily totals into your software at the end of each day while the figures are fresh
- Photograph receipts for stock purchases using WhatsApp with Accounted
- Keep a simple cash book as a backup record alongside your software
Do Not Forget Expenses
Market traders have specific deductible expenses: pitch fees, stock purchases, transport costs, packaging, signage, and market membership fees. Record them all digitally.
Accounted handles your bookkeeping, tax estimates, and MTD submissions automatically. Start your free trial — no credit card required.
Tax & Compliance Specialists
Our tax specialists have decades of combined experience in UK sole trader and small business taxation, MTD compliance, and HMRC submissions. All content is reviewed against current HMRC guidance before publication and updated quarterly to reflect legislative changes.
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