Choosing an Accountant for Making Tax Digital

What is Making Tax Digital, and Who Does It Apply To?

MTD will eventually require all businesses to keep digital records using HMRC-compatible software and submit their figures every quarter.

There’s been an ongoing phased rollout of MTD since 2019, with VAT-registered businesses being the first to test out the system (MTD for VAT).

MTD for VAT applies to all VAT-registered businesses above the VAT threshold (which is currently £90,000 taxable turnover), as well as those who register for VAT voluntarily.

The most recent change, MTD for ITSA, came into force on the 6th of April 2026 and only affects sole traders and landlords once they reach certain thresholds.

You will be affected from:

• 6th April 2026, if you have an annual business or property income of more than £50,000
• April 2027, if you have an annual business or property income of more than £30,000
• April 2028, if you have an annual business or property income of more than £20,000

Making Tax Digital for Income Tax Self Assessment Responsibilities

• Keeping digital records of your income and expenses using HMRC-compatible software.
• Submitting quarterly updates to HMRC on: 7th August, 7th November, 7th February and 7th May. You don’t need to worry about these triggering a payment each time – they’re more like progress snapshots of your records that will give you an estimated tax bill as you go along and can be corrected later if needed.
• Completing a final end-of-year declaration – you’ll do this after your fourth quarterly update. This replaces the traditional self assessment return and is where everything is checked, corrected and finalised.

Do I Need an Accountant for Making Tax Digital?

No, there is no legal requirement to use an accountant for MTD; however, they can be a great help for things like:

• Helping you to choose suitable MTD-compatible software.
• Ensuring you keep up-to-date with your digital record keeping, such as maintaining accurate records and organising expenses.
• Helping with quarterly updates and submissions – reviewing records, identifying errors and managing deadlines.
• Tax planning and advice.

Do I Still Need an Accountant if I’m using Making Tax Digital Software?

It’s a common misunderstanding that using MTD software will replace the need for an accountant.

While software can automate record-keeping and submission, it cannot:

• Interpret tax legislation
• Optimise tax efficiency
• Provide personalised advice
• Identify mistakes, opportunities and risks

How to Choose a Making Tax Digital Accountant

When looking for an accountant to help you with your MTD obligations, they should have:

• MTD experience
• Industry expertise
• Software knowledge
• Ongoing support availability
• Fixed-fee packages

Making Tax Digital – How We Can Help

At Dolan Accountancy, we can support you with these new changes and give you confidence that you’re MTD ready and meeting your obligations correctly.

We can help to:

• Set up compliant digital bookkeeping through FreeAgent
• Manage your quarterly submissions
• Keep your records accurate and up to date
• Ensure you stay fully compliant and stress-free

Our MTD package includes everything you need and is just £25 +VAT per month.

If you’re an existing client, we can take care of your MTD needs starting at just an additional £10 + VAT per month.

If you have any further questions, our team of experts are available to answer any queries, so give us a call on 01442 795 100 or email jaime.thorpe@dolanaccountancy.com. Alternatively, contact us via live chat.