Do I need an accountant for Making Tax Digital?
No. HMRC's guidance says you, or an agent if you have one, must use software for Making Tax Digital (MTD) for Income Tax, so doing it yourself is allowed. An accountant becomes worth paying for when your year-end figures get complicated, or when you simply want someone else to carry the deadlines.
What the law requires
MTD requires digital records, quarterly updates and a tax return sent through software. Nothing in HMRC's guidance says an accountant has to do any of it. GOV.UK describes every task as something you or your agent can do.
Not using an accountant is not a route to an exemption either. HMRC will not grant one just because you are unfamiliar with accounting software or because MTD costs you time or money. See MTD exemptions.
What you can do yourself
- Check whether you need MTD and when, with HMRC's online tool or our free MTD checker.
- Choose software from HMRC's software finder. GOV.UK says free products exist for people with simple tax affairs, though they may have limits.
- Sign up online with your Self Assessment sign-in details.
- Keep digital records: the amount, date and category of each item.
- Send quarterly updates. These are summaries, not tax returns, and HMRC says you do not need to make accounting or tax adjustments before sending them.
- Make year-end adjustments, add other income and submit your return by 31 January.
For help, HMRC has an online digital assistant and Self Assessment general enquiries, and your software provider should support its own product.
What an accountant can do for you
For MTD, HMRC recognises two kinds of agent. You can have one main agent and any number of supporting agents. MTD is the only service where you can have more than one; for Self Assessment you can only have one agent.
A main agent can do almost everything you can, including sending updates, finalising your tax position, submitting your return, viewing your tax calculation and handling penalty appeals. The only things they cannot do are set up a Direct Debit for you or change how HMRC contacts you.
A supporting agent, such as a bookkeeper, can keep your business records and send quarterly updates, but cannot submit your return, view your tax calculation or see all your income sources. GOV.UK's own example is a bookkeeper doing the quarterly updates and an accountant finalising the return.
How agent authorisation works
Your accountant needs an HMRC agent services account and your authorisation. They request it from their account, and you see a consent statement showing whether they will be your main or supporting agent.
If they already act for you on Self Assessment, that authorisation is recognised for MTD and they become your main agent, but you still have to be signed up separately. Before a main agent submits your return, HMRC's guidance says they should share a copy of the figures with you and ask you to confirm in writing that they are correct and complete.
To remove an agent later, use 'Manage Your Tax Agent' or 'Manage who can deal with HMRC' in your HMRC online account.
When an accountant is worth it
These are common situations where the year-end work gets harder, based on what HMRC's guidance asks you to handle:
- Year-end adjustments such as capital allowances, accruals and prepayments, or disallowable expenses.
- An accounting year that does not end on 31 March or 5 April. HMRC says it will publish guidance on some of the adjustments later.
- Several businesses, such as two trades plus UK and foreign property, each needing its own updates.
- Jointly let property, non-UK residence, or income reported to you by a trust or partnership.
- Little time, or a history of missed deadlines. From 2027 to 2028, each missed update deadline earns a penalty point. See MTD penalties.
Splitting the work to keep costs down
A popular split is that you keep the records and send the quarterly updates, and your accountant, as main agent, makes the year-end adjustments and submits the return. This fits how MTD is designed: quarterly updates need no accounting or tax adjustments, and those adjustments come after the fourth update, just before the return.
If you use different software from your accountant, check that the products work together. GOV.UK advises asking your agent about your software choice. If several people work on the same business, there must be one combined update for each period and one return after adjustments.
If you change agent, your old agent loses access to your account, so make sure you can still get to your own records.
How much do accountants charge for MTD?
Fees vary widely, and HMRC does not set or publish them. Ask for a fixed quote in writing and check what it covers: the number of businesses, whether quarterly updates are included or only the return, whether the software subscription is included, and the cost of extra work such as capital allowance claims.
Good records cut the time an accountant spends, so tidy bookkeeping is the easiest way to keep a quote down. See what records to keep.
Keeping the records with Snapfile
If you want to keep records yourself and hand over a clean file, Snapfile works over WhatsApp: send receipt photos, PDFs or texts and it records them, sorts them into Self Assessment expense categories, tracks the tax year and quarter, logs mileage and exports a CSV for you or your accountant. It does not submit to HMRC. It is free during early access, with a Pro plan planned at £9.99 a month.
Common questions
Do I need an accountant for Making Tax Digital?
No. HMRC's guidance lets you keep records, send quarterly updates and submit your return yourself using software. An accountant is optional.
Can my accountant do MTD for me?
Yes. Once authorised as your main agent through their agent services account, they can sign you up, send your quarterly updates and submit your return. HMRC's guidance says they should share the figures with you and ask for your written confirmation before submitting the return.
How much do accountants charge for MTD?
There is no standard fee and HMRC does not set one. Ask several firms for a fixed written quote that says exactly which quarterly and year-end tasks are included.
Can I do Making Tax Digital myself?
Yes. You need software from HMRC's software finder, which includes some free options for simple tax affairs, and you can use HMRC's guidance and digital assistant for help.
Can I have a bookkeeper and an accountant for MTD?
Yes. You can have one main agent and any number of supporting agents, so a bookkeeper can send quarterly updates while your accountant files the return.
Sources: GOV.UK: Choose agents for Making Tax Digital for Income Tax; GOV.UK: Add your client authorisations for Making Tax Digital for Income Tax; GOV.UK: Sign up your client for Making Tax Digital for Income Tax; GOV.UK: Making Tax Digital for Income Tax for sole traders and landlords: step by step; GOV.UK: Find out if you can get an exemption from Making Tax Digital for Income Tax; GOV.UK: Choose the right software for Making Tax Digital for Income Tax; GOV.UK: Find software that works with Making Tax Digital for Income Tax; GOV.UK: Use Making Tax Digital for Income Tax: Send quarterly updates; GOV.UK: Use Making Tax Digital for Income Tax: Adjust your self-employment and property income; GOV.UK: Use Making Tax Digital for Income Tax: Submit your tax return; GOV.UK: Use Making Tax Digital for Income Tax: If your circumstances change; GOV.UK: Use Making Tax Digital for Income Tax: Help and support; GOV.UK: Penalties for Making Tax Digital for Income Tax. This is general information, not tax advice; check GOV.UK or an accountant for your situation.
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