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MTD accountants

Making Tax Digital

MTD accountantsDo I need MTD?Tax calculatorMileage calculatorDeadline calendarMTD for Income TaxSelf-employedLandlordsSoftwareSign upPenalties and exemptionsSmall business accountants

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Making Tax Digital for Income Tax

Over £30k? Making Tax Digital starts for you in April 2027.

Sole traders and landlords must keep digital records and send HMRC an update every quarter. Tell us about your income and we’ll match you with up to 4 local accountants who can take it off your hands.

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Prefer to talk? Call 0330 057 7175

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1,077,000

more sole traders and landlords join from April 2027 (HMRC estimate)

1,077,000
more sole traders and landlords join in April 2027 (HMRC)
864,000
were in the first group, over £50,000, from April 2026 (HMRC)
4
quarterly updates a year, plus a tax return
40,605
accountancy and tax firms across the UK (ONS 2026)

The short answer

What is Making Tax Digital for Income Tax?

Making Tax Digital changes how sole traders and landlords report to HMRC. You keep your records in compatible software, send HMRC a summary every quarter, and file your tax return through the same software by 31 January.

Whether it applies to you depends on your qualifying income: your self-employment and property income added together, before expenses. Our guide to MTD for Income Tax explains who is in, the dates and what you send, and our MTD checker gives your start date in seconds. There are separate guides for the self-employed and for landlords.

  • Over £50,000

    since 6 April 2026

  • Over £30,000

    from 6 April 2027

  • Over £20,000

    from 6 April 2028

Why people use an accountant

What an MTD accountant does for you

Quarterly updates mean four deadlines a year instead of one, and penalty points for missing them from April 2027. An accountant can take all of it off your hands once you authorise them as your agent with HMRC.

  • Sets you upSigns you up with HMRC as your agent and gets compatible software working.
  • Keeps the recordsKeeps your digital records, or checks the ones you keep yourself.
  • Sends the updatesSends each quarterly update by 7 August, 7 November, 7 February and 7 May.
  • Files the returnMakes the year-end adjustments and files your tax return by 31 January.

Most firms charge a monthly fee. Published prices we found run from about £25 to £200 a month, with £45 to £150 typical, depending on how many income sources you have and how much bookkeeping you want done.

An accountant talking a client through her figures at a meeting table

Doing it yourself?

You can. HMRC lists every recognised product in its software finder, including free options for simple affairs and bridging software if you want to keep your spreadsheets. Our guide to MTD software compares the options. If you would rather not, we will match you with an accountant who will.

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By region

Self-employment and accountants by region

Across the UK there are about 110 self-employed people for every accountancy firm (our calculation from ONS figures). Where that number is high, firms will be stretched when the April 2027 group joins.

RegionSelf-employedRateAccountancy firms
North East130,80010.7%845
North West418,40011.8%3,815
Yorkshire and the Humber341,80012.9%2,475
East Midlands305,40012.7%2,430
West Midlands335,80011.8%3,200
East of England433,50013.5%4,390
London764,70015.7%9,730
South East705,10014.8%6,625
South West440,50015.4%3,220
Wales185,80012.5%1,235
Scotland311,10011.4%1,915
Northern Ireland122,80013.4%725

ONS UK Business Counts 2026; ONS Annual Population Survey, Jul 2025 to Jun 2026. UK self-employment rate 13.4%.

Looking for your town? See areas we cover. Wherever you are, the form on this page covers every UK postcode.

A sole trader reading a tax letter at his kitchen table

The dates that matter

  1. 6 Apr 2026Started for qualifying income over £50,000 (2024-25 return)
  2. 7 Nov 2026Second quarterly update due for the April 2026 group
  3. 6 Apr 2027Starts for qualifying income over £30,000 (2025-26 return). Penalty points for late quarterly updates begin
  4. 7 Aug 2027First quarterly update due for the April 2027 group
  5. 31 Jan 2028First MTD tax return and payment due for 2026-27
  6. 6 Apr 2028Starts for qualifying income over £20,000 (2026-27 return)

Questions people ask

Straight answers

Who has to use Making Tax Digital for Income Tax?

Sole traders and landlords registered for Self Assessment whose qualifying income is over the threshold. Over £50,000, it started on 6 April 2026. Over £30,000, it starts on 6 April 2027. Over £20,000, it starts on 6 April 2028. Source

What counts as qualifying income?

Your gross income from self-employment and property added together, before expenses. Salary, pensions, dividends and partnership profit shares do not count. If you own a property jointly, only your share counts. Source

When are the quarterly update deadlines?

For most people, 7 August, 7 November, 7 February and 7 May. Each update covers the tax year so far, from 6 April. HMRC sees category totals, not individual receipts. Source

Do I need an accountant for Making Tax Digital?

No, it is not a legal requirement. Many sole traders and landlords use one to set up the software, keep the records, send each quarterly update and file the tax return. You authorise them as your agent with HMRC. Source

Can I keep using spreadsheets?

Yes, if you pair them with HMRC-recognised bridging software that sends your figures to HMRC. HMRC does not supply its own software, so use its software finder to choose a product. Source

What happens if I miss a deadline?

Each missed deadline earns a penalty point, and at 4 points you pay £200, plus £200 for each later miss. There are no penalties for missing a quarterly update in the 2026 to 2027 tax year, but the updates must still be sent. Source

Can I get an exemption?

You are exempt automatically if your qualifying income is £20,000 or less, or you have no National Insurance number before the tax year starts. You can apply if age, health, disability, religious belief or lack of internet access means you cannot reasonably use software. Source

How much does an MTD accountant cost?

Most firms charge a monthly fee. Published prices we found run from about £25 to £200 a month, with £45 to £150 typical, depending on how many income sources you have and how much bookkeeping you need. Source

Guides

MTD for Income Tax explainedWho is in, the dates, quarterly updates and what it costs.Making Tax Digital for the self-employedWhat changes for sole traders from April 2027.Making Tax Digital for landlordsRental income, joint ownership and overseas property.Self-employed tax calculatorHow much tax and NI to set aside each quarter.Self-employed mileage calculatorThe 55p rate or actual costs: which claims more.MTD deadline calendarEvery update and payment date, added to your calendar.Do I need to use Making Tax Digital?Check your qualifying income and start date.MTD software or an accountant?Software, spreadsheets and bridging tools compared.How to sign up for Making Tax DigitalSigning up yourself, or letting an accountant do it.MTD penalties and exemptionsPenalty points, late payment and who is exempt.Accountants for small businessWhat they do, what to ask and what they cost.MTD for builders and CIS subcontractorsHomeowner and contractor work, CIS and the reverse charge.MTD for plumbers and electriciansDeposits, van stock, scheme fees and card payments.MTD for taxi and delivery driversSeveral apps, platform reports and car costs.MTD for hair and beautyRent-a-chair, tips, products and mobile work.MTD for cleaners and carersMany small clients and travel between them.

Sources

Written by the Compare Advantage team, Chorley. Facts checked against GOV.UK on 3 November 2026.

Compare Advantage is an introduction service. We are not an accountancy firm and do not give tax advice. We will contact you to introduce a local accountant who handles Making Tax Digital, and we tell you which firm before we pass on your details. Firms may pay us for the introduction. Guidance on this page is general and based on the GOV.UK sources linked on each page.