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Do I need an accountant for Making Tax Digital?

By Righto Tax · Last reviewed · 17 sources

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No. You can keep digital records and send your own updates from compatible software, some of it free. Making Tax Digital starts on 6 April 2027 if your 2025-26 income before expenses was over £30,000.

Making Tax Digital for Income Tax (MTD) asks for three things: digital records, four quarterly updates a year and a tax return by 31 January. Nothing in the rules says a professional must do them. What you need is the right software, or someone you trust to run it for you. This page was checked against GOV.UK and each provider's own site on 16 October 2026.

Want your books sorted?

We sort your books and prepare your quarterly figures. You send them to HMRC yourself with free Making Tax Digital software.

Founding offer on Trades Tax (coming later), first 500 trades clients: £5 a month for your first 3 months, then £35 a month. Cancel any time. We’ll remind you before it changes. Prices include VAT. No payment is taken while you wait.

Hold my place See Righto Tax for Trades

Are you ready for Making Tax Digital? Check your start date and what to sort first. It’s free and takes a minute.

What MTD asks of you

  • Self-employed turnover and rent are added together, before expenses. Over £30,000 in 2025-26 means you start on 6 April 2027; over £20,000 in 2026-27 means 6 April 2028.
  • Quarterly updates are due by 7 August, 7 November, 7 February and 7 May.
  • A late quarterly update can earn a penalty point, and 4 points bring a £200 penalty. At the Budget on 28 October 2026 the government said people who must join in April 2027 will get no penalty points for late 2027-28 quarterly updates, though the updates must still be sent. For them, the earliest a late update can earn a point is 7 August 2028.

The four options, and who each suits

OptionWhat you doWho it suitsExample cost, as listed on 16 October 2026
Free or low-cost softwareKeep records in the app, check them, press sendOne trade or a couple of lets, tidy bank account, time to do itFree with some business bank accounts; Hammock £8 a month plus VAT (£9.60 including VAT) for 1 to 3 properties
Bridging softwareKeep your spreadsheet; the software sends the totalsPeople who already keep a good spreadsheetLandlordFile £19 for the first year, then £29 a year, including any VAT
An accountant or bookkeeper as your agentPass on records and approve the figuresSeveral income sources, CIS refunds, joint property, gains or a messy yearSleek's fee guide puts a sole trader return at £200 to £350 plus VAT (£240 to £420 including VAT); that guide does not cover quarterly updates
A managed serviceConnect your bank or send paperwork, then confirmPeople who want it off their plate at a fixed monthly priceTaxfix MTD Full Support £39.99 a month including VAT, which is £479.88 over 12 months; Taxfix also advertises the first 3 months free

Taxfix's cheaper MTD Assistance plan, at £24.99 a month including VAT, has you record the entries and an accountant review and submit them. Prices change often, so check the provider's own page before signing up.

Free software that comes with a bank account

On 16 October 2026 we read every product page on GOV.UK's software finder: 37 of 171 had a free version marked "ready now". Several belong to banks:

  • FreeAgent for free with Mettle, NatWest & RBS. FreeAgent's own site says it is free with a NatWest, RBS or Ulster Bank business current account, or with Mettle if you make at least one transaction a month.
  • Monzo. Monzo says its tool is built into Monzo Business and sends the year-end tax return as well as quarterly updates.
  • Starling. Starling says its tool is free with its sole trader account; year-end declarations are listed as coming soon.
  • Lloyds Bank and Tide also have finder entries with a free version. Tide's entry covers sole traders but not UK property.

For CIS subcontractors, the finder marks CIS deductions on the tax return as "in development" for the Starling, Monzo, Lloyds Bank and Tide entries, and "ready now" for the FreeAgent bank version. "In development" means the provider has committed to it in time for the 2026-27 tax return.

When paying someone is worth it

  • More than one income source, such as a trade and a let, or foreign property.
  • Over-deducted CIS you want claimed back properly.
  • A jointly owned let, especially a married couple with unequal shares.
  • Selling a property, or a year with capital gains.
  • You are behind with returns, or HMRC has opened a check.
  • You simply will not do it every quarter. A missed update costs a point, and points add up.

What this means for you

If your affairs are simple and you are organised, free or low-cost software will do the job, and the bank-linked options cost nothing extra if you already bank there. If your affairs are mixed, an agent can be cheaper than the mistakes. Either way, you check the figures, because the return is yours.

We are building a managed service of this kind, using automated software with you confirming every figure. Our tax plans start once our HMRC registrations are complete. Until then you can join the waitlist, and no payment is taken.

Steps to decide

  1. Use the free MTD check to find your start date.
  2. List your income sources: trade, each let, CIS, foreign property, any gains.
  3. If they are simple, compare free MTD software on GOV.UK's finder, starting with your own bank.
  4. If not, ask an agent what they charge, including VAT; see what accountants charge for MTD and whether an accountant can do MTD for you.
  5. Consider splitting the work: who can send your quarterly updates.
  6. Or look at a managed MTD service.
  7. Set up before 6 April 2027, so every transaction from day one is recorded.

More guides are in the trades section and the landlord section.

Hold your place on the waitlist

We’ll email you when Trades Tax opens, with the founding offer while places last. No payment is taken.

Optional

Sending this asks us to email you what you’ve asked for here: your results, reminders and service updates. That’s not marketing. See our privacy notice for how we use and protect your details.

Questions people ask

Is it a legal requirement to use an accountant for Making Tax Digital?

No. The rules require digital records and updates sent from compatible software. You can do that yourself, or authorise someone else to do it for you.

Can I keep using my spreadsheet?

Yes, with bridging software. GOV.UK describes it as software that connects to records you already keep, such as spreadsheets, and sends the figures to HMRC.

Is there free Making Tax Digital software?

Yes. On 16 October 2026, 37 of the 171 product pages on GOV.UK's software finder had a free version marked ready now. Several come with a business bank account, and most free versions have limits.

Can a bookkeeper send my updates and an accountant file my return?

Yes. HMRC lets you have one main agent and any number of supporting agents. A supporting agent can send quarterly updates; only a main agent can send your tax return.

Do quarterly updates mean paying tax every quarter?

No. An update is a summary of income and costs, not a payment. You still pay on the usual Self Assessment dates.

Sources

This is general information to help you understand the rules. It isn't tailored to your circumstances, so check your own position before acting on it.

Righto Tax is a trading name of NJG Consultancy Ltd, registered in England and Wales, company number 16095900. Registered office: Jubilee House, East Beach, Lytham St Annes, FY8 5FT.

What happens next

  1. Use the free Making Tax Digital checker to see your own start date and deadlines.
  2. See what Righto Tax for Trades does for you, and join the waitlist.
  3. Questions about this page? Email hello@rightotax.co.uk.