Last updated: June 2026 · Reviewed by the AccountingFirms editorial team (UK qualified-accountant network)
Quick answer: Most UK accountants charge an extra £15–£60 per month to handle Making Tax Digital (MTD) for a sole trader or landlord, or it’s bundled into a fixed package from £30–£120 per month. One-off MTD setup typically costs £100–£300, plus MTD-compatible software from around £10–£35 per month.
Making Tax Digital is the biggest change to UK tax admin in a generation, and with MTD for Income Tax rolling out from April 2026 for sole traders and landlords with qualifying income over £50,000, many people are asking the same thing: how much will an accountant charge to handle MTD? This guide breaks down realistic 2026 costs so you can budget properly and avoid paying over the odds.
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How much does an accountant charge for Making Tax Digital?
| MTD service | Typical UK cost (2026) |
|---|---|
| One-off MTD setup & onboarding | £100–£300 |
| MTD for Income Tax (sole trader / landlord) | £15–£60 per month |
| Quarterly MTD submissions | £40–£120 per quarter |
| MTD for VAT (per return) | £100–£250 per quarter |
| Full bundled MTD package | £30–£120 per month |
| MTD-compatible software | £10–£35 per month |
Most accountants now fold MTD into a single fixed monthly fee that covers software, quarterly updates and your final declaration, so you’re not hit with surprise charges each quarter.
What you’re actually paying for
- Digital record-keeping setup — connecting your bank feeds and configuring MTD-compatible software.
- Quarterly updates — submitting income and expenses to HMRC every three months.
- End-of-period statement and final declaration — replacing the old annual self-assessment process.
- Software licence — Xero, QuickBooks, FreeAgent or similar (sometimes included free).
- Ongoing support — keeping you compliant and answering questions year-round.
Why MTD costs vary
Your income and number of businesses
Landlords with several properties, or people with both self-employment and rental income, need more submissions, which increases the fee.
Whether software is included
Some accountants bundle the software licence; others bill it separately. Always check, because £10–£35 a month adds up.
How organised your records are
Clean, digital records keep the fee low. Shoeboxes of receipts cost more to process.
Bundling with other services
Combining MTD with your wider accounts, VAT and tax planning usually works out cheaper than buying each piece separately.
Is it worth paying an accountant for MTD?
For most people, yes. MTD’s quarterly deadlines mean four chances a year to miss a filing and trigger penalty points. An accountant keeps you compliant, sets up the right software once, and saves hours of admin every quarter. If you want the background detail, see our guides to Making Tax Digital and HMRC compliance.
How to keep your MTD costs down
- Get fixed, all-in quotes that include software and quarterly submissions.
- Compare at least three accountants on a like-for-like basis.
- Go digital early so your first quarter isn’t a scramble.
- Bundle MTD with your annual accounts and tax return.
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Frequently asked questions
How much does an accountant charge for Making Tax Digital?
Most charge £15–£60 per month for MTD for Income Tax, or bundle it into a £30–£120 monthly package. One-off setup is usually £100–£300.
When does MTD for Income Tax start?
From April 2026 for sole traders and landlords with qualifying income above £50,000, with lower thresholds phased in afterwards.
Do I need to pay for MTD software as well?
Yes, unless your accountant includes it. MTD-compatible software typically costs £10–£35 per month; many accountants bundle it into their fee.
Can I do MTD myself without an accountant?
You can, but the quarterly deadlines and digital record rules catch many people out. An accountant reduces the risk of penalties and saves time.
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