In a few short weeks, Making Tax Digital for Income Tax will go live. Here at Adams Accountancy, we’ve been busy helping our clients who are impacted in the first wave of taxpayers to get their heads around what it all means.

 

Making Tax Digital is already mandatory for VAT-registered businesses, and from April 2026, it’s coming for Income Tax Self-Assessment. If you’re earning over £50,000 as a sole trader or landlord, you’ll need to comply. The question we keep hearing is ‘Do I need an accountant for MTD?’ so we thought it was time to give you our views on that.

 

What does MTD mean for you in practice?

If you are in scope for MTD this April, you must keep digital records using compatible software, submit quarterly updates to HMRC instead of one annual return, and file a final declaration with any necessary adjustments. You’ll need solid bookkeeping knowledge, the ability to categorise income and expenses correctly, understanding of tax allowances, and discipline to meet quarterly deadlines.

 

Setting up your system initially can take several hours. Once running, you can expect to spend at least 3-5 hours (or more) each quarter on data entry, reconciliation and submissions, depending on how many transactions you process. The most successful DIY approach involves spending time weekly keeping everything up to date, rather than facing several full day’s work every three months.

 

When you probably can manage MTD yourself

DIY MTD works best when your business structure is simple – straightforward income streams, limited transactions, no employees or subcontractors, and sole trader status. A freelance designer we know handles his own MTD brilliantly. He invoices about 10 clients monthly, has minimal expenses, and spends less than an hour weekly on bookkeeping. A checklist can help you stay on top of what’s needed and when.

 

Your personality matters too. People who manage MTD successfully themselves are naturally organised, enjoy learning new systems, feel comfortable with numbers, and meet deadlines without external pressure. If you’re already stressed about business admin and routinely leave things until the last minute, forcing yourself through MTD could make you miserable.

When hiring an accountant for MTD makes financial sense

Professional support often pays for itself through time saved, mistakes and fines avoided and opportunities identified. Consider getting an accountant for MTD if you have multiple income streams, work under the Construction Industry Scheme, employ staff, are VAT-registered with complex schemes or manage a property portfolio and are paying Income Tax.

 

The hidden costs of not using an accountant for MTD

HMRC penalties for late MTD submissions start at £200 and increase with repeated failures. Interest charges on underpaid tax currently run at 7.75% (correct as of 9th February 2026).

 

Perhaps more costly are missed opportunities. Capital allowances, pension contributions, dividend strategies – these planning opportunities can easily save thousands in tax and quarterly MTD reporting can help highlight potential savings.

 

What services does an accountant for MTD provide?

Most accountants offering MTD services provide initial software setup and training, ongoing bookkeeping or regular review of your bookkeeping, management of quarterly submissions, year-end adjustments and tax optimisation, proactive tax planning throughout the year, and handling of HMRC correspondence.

 

The middle ground: part-time MTD support

You don’t have to choose between complete DIY and full-service support. Many accountants offer flexible packages: DIY with annual review, professional setup then self-maintenance, pay-as-you-go advice, quarterly review sessions, or annual tax return only whilst you handle quarterly MTD yourself.

 

One of our clients uses a hybrid approach brilliantly. She maintains her own QuickBooks records weekly, we review them quarterly to catch errors, and she will submit the returns herself. It costs less than a full-service support but gives her confidence she’s getting it right.

Making your decision about MTD support

Calculate what your time is actually worth. If you charge clients £75 per hour, spending five hours monthly on bookkeeping costs you £375 in lost billable time. Add software costs and you’re approaching what professional support might cost.

 

Ask yourself and be honest:

Can I commit to consistent weekly bookkeeping?

What’s my error risk tolerance?

Do I want strategic advice or just compliance?

The answers will guide whether you need an accountant for MTD.

 

Whatever you decide about Making Tax Digital, make it an informed choice rather than a worried guess. Contact us today for a free, no-pressure chat about what would work best for your business. Call 01322 250001 or get in touch online.

 

Frequently asked questions

How much does an accountant for MTD typically cost?

Basic MTD compliance for simple sole traders typically starts around £100-150 monthly, whilst comprehensive service for complex businesses ranges from £300-600 monthly. These fees usually include software subscription, quarterly submissions, year-end work and basic tax planning. Geographic location affects pricing – London accountants generally charge more than those in Kent.

 

Can I start DIY and hire an accountant for MTD later?

Absolutely. Many business owners start managing MTD themselves then transition to professional support as their business grows. The switch is straightforward if you’ve maintained good digital records – your accountant simply takes over from where you left off. There’s no penalty for changing your mind.

 

Is getting an accountant for MTD worth it just for tax planning?

Tax planning advice often delivers value far exceeding accountancy fees. Strategic planning around dividend timing, pension contributions, capital allowances and business structure can easily save thousands annually. For example, proper dividend planning for limited company directors can reduce overall tax by £3,000-7,000 annually. These savings dwarf typical accountancy fees.

About the author

Michelle Adams is a qualified accountant and director at Adams Accountancy, specialising in helping small business owners and high earners optimise their tax position. With over 15 years of experience supporting limited companies, sole traders and professionals across Kent, Michelle and her team make complex tax planning simple and accessible. For expert advice on Making Tax Digital and all other aspects of running a business, contact Adams Accountancy or call 01322 250001 for a free consultation.