Do I Need an Accountant for Making Tax Digital?

Short answer: no, you don't need an accountant to comply with MTD. But there are situations where having one still makes sense.

Making Tax Digital for Income Tax changes how you report to HMRC, not what you report. If you've been doing your own Self Assessment tax return, you can probably handle MTD yourself — especially with the right software.

What MTD Actually Requires You to Do

Under MTD for Income Tax, you need to:

  1. Keep digital records of your income and expenses (no more shoeboxes of receipts)
  2. Submit quarterly updates to HMRC — four times a year, summarising your income and costs
  3. Submit an End of Period Statement (EOPS) after the tax year ends
  4. Submit a Final Declaration confirming your overall tax position (this replaces the Self Assessment tax return)

That sounds like a lot, but the quarterly updates are simple summaries. You're not submitting detailed breakdowns — just totals for income and expenses by category.

When You Can Do MTD Yourself

You can probably handle MTD without an accountant if:

  • Your finances are straightforward — one income source, clear expenses, no complex tax reliefs
  • You've been doing your own Self Assessment — MTD is actually simpler because you're spreading the work across the year
  • You use MTD software — tools like ClearMTD guide you through each step and submit directly to HMRC
  • You're comfortable with basic record keeping — if you can track what you earn and spend, you can do MTD

Most sole traders with a single trade and straightforward expenses will find MTD perfectly manageable on their own.

When an Accountant Still Makes Sense

Consider keeping your accountant if:

  • You have multiple income sources — self-employment plus rental income, for example
  • Your tax affairs are complex — capital allowances, losses brought forward, overlap relief
  • You claim tax reliefs that require professional judgement
  • You simply don't want to deal with it — that's a valid reason
  • You're close to the VAT threshold — you may need advice on structuring

Even if you use an accountant, MTD changes the workflow. Your accountant can't just do everything at year-end anymore — quarterly updates need to happen during the year. Many accountants are asking clients to use MTD software for the quarterly updates and then handling the year-end advisory work themselves.

The Middle Ground: Software + Year-End Accountant

The approach many sole traders are taking:

  1. Use MTD software to keep records and submit quarterly updates yourself (this is the routine data entry — income and expenses)
  2. Hand over to your accountant at year-end for the EOPS and Final Declaration, where they can review your figures, apply reliefs, and optimise your tax position

This keeps costs down (you're not paying an accountant for basic data entry four times a year) while still getting professional help where it matters.

ClearMTD is built for this workflow. It's simple enough to use yourself for quarterly updates, and your accountant can review your records at year-end.

How Much Does an Accountant Charge for MTD?

If your accountant handles everything — quarterly updates, EOPS, and Final Declaration — expect to pay more than you do currently for Self Assessment. The extra quarterly submissions mean more work for them.

Some accountants are adding £200–£500 per year to their fees to cover the additional MTD workload. Others are passing MTD software costs to their clients.

By handling the quarterly updates yourself, you avoid this extra cost. MTD software like ClearMTD costs £9/month or £79/year — significantly less than paying an accountant for four quarterly submissions.

Getting Started Without an Accountant

If you decide to do MTD yourself:

  1. Check if MTD applies to you — use our free MTD checker to find out
  2. Choose MTD software — you need HMRC-recognised software to submit quarterly updates
  3. Sign up with HMRC — you'll need to register for MTD for Income Tax through your Government Gateway account
  4. Start keeping digital records — your software will handle the format HMRC needs

The first quarterly update under MTD isn't due until July 2026 (for the April–June quarter). You have time to get set up.

Summary

Situation Recommendation
Simple sole trader, one income source Do it yourself with MTD software
Multiple income sources or complex tax Keep your accountant for year-end
Don't want to deal with it at all Keep your accountant (but expect higher fees)
Want to save money Use software for quarterly, accountant for year-end

MTD doesn't have to mean higher costs. With the right software, most sole traders can handle compliance themselves — and keep their accountant on hand for the bits that actually need professional expertise.

Further Reading