Tax & compliance
Do I need an accountant for Making Tax Digital?
By Kaiser Khan · Updated 13 August 2026
What does Making Tax Digital actually require?
Under MTD for Income Tax you keep digital records of income and expenses, send HMRC a summary update every quarter through compatible software, and finish with a final declaration that replaces the old self assessment return. The software requirement is not optional — paper records and standalone spreadsheets no longer comply.
Under MTD for Income Tax you keep digital records of income and expenses, send HMRC a summary update every quarter through compatible software, and finish with a final declaration that replaces the old self assessment return. The software requirement is not optional — paper records and standalone spreadsheets no longer comply.
Can you handle Making Tax Digital yourself?
If your records are simple — one trade, a business bank account, tidy bookkeeping — doing MTD yourself with cloud software is realistic. You take on the quarterly rhythm, the categorising, and the final declaration. The main risk is drift: missed quarters build penalty points under the new points-based late-submission system.
If your records are simple — one trade, a business bank account, tidy bookkeeping — doing MTD yourself with cloud software is realistic. You take on the quarterly rhythm, the categorising, and the final declaration. The main risk is drift: missed quarters build penalty points under the new points-based late-submission system.
When is an accountant worth it for MTD?
An accountant can run the whole cycle: software setup, bank feeds, quarterly submissions and the final declaration. Our benchmarks put MTD support at roughly £10–£20 per month as an add-on, often bundled into sole trader packages of £39–£89 a month. For landlords with jobs, or anyone allergic to admin, that is usually money well spent.
An accountant can run the whole cycle: software setup, bank feeds, quarterly submissions and the final declaration. Our benchmarks put MTD support at roughly £10–£20 per month as an add-on, often bundled into sole trader packages of £39–£89 a month. For landlords with jobs, or anyone allergic to admin, that is usually money well spent.
How should you prepare before your MTD start date?
Check which wave you are in — over £50,000 from 6 April 2026, over £30,000 from April 2027, over £20,000 from April 2028 — and do not wait for it. Open a separate business bank account, choose software, and do a dry quarter now. Comparing accountants before the 2026 rush beats calling one in a panic the week before your first update.
Check which wave you are in — over £50,000 from 6 April 2026, over £30,000 from April 2027, over £20,000 from April 2028 — and do not wait for it. Open a separate business bank account, choose software, and do a dry quarter now. Comparing accountants before the 2026 rush beats calling one in a panic the week before your first update.
People also ask
Can I still use spreadsheets under MTD?
Only with bridging software that links the spreadsheet to HMRC digitally. On its own, a spreadsheet does not meet the digital records requirement — most people find proper accounting software simpler than maintaining a bridging setup.
Does MTD mean paying tax quarterly?
No — the quarterly updates are information reports, not payments. Payment dates stay as they are under self assessment: 31 January, plus payments on account where they apply.
Does MTD apply to my limited company?
MTD for Income Tax does not apply to companies, and HMRC confirmed in its July 2025 Transformation Roadmap that it does not intend to introduce MTD for Corporation Tax. MTD for VAT already applies to all VAT-registered businesses, including companies.
This article is general information for UK businesses, not tax, legal, or financial advice, and thresholds change — confirm current rules on GOV.UK or with a qualified accountant before acting. Fee figures are indicative benchmarks from ourmethodology.