Making Tax Digital (MTD) is transforming how UK individuals and business owners keep records and submit tax information to HMRC. But one of the most common questions we hear is:

“Do I actually need an accountant for MTD?”

The short answer? Not always...but for some people, it’s highly beneficial.

Let’s break it down in plain English so you can decide what’s right for you.

What Is Making Tax Digital (MTD)?

Making Tax Digital is a UK government initiative designed to make tax administration more efficient, accurate, and easier for taxpayers.

Under MTD, you must:

• Keep digital records
• Use MTD-compatible software
• Submit updates to HMRC quarterly

Who Does MTD Apply To?

As of now:

• MTD for VAT is mandatory for most VAT-registered businesses
• MTD for Income Tax (ITSA) is mandatory for self-employed individuals and landlords earning over £50,000 (with the threshold decreasing in April 2027 and 2028

Can I Do MTD Without an Accountant?

Yes. HMRC does not require you to use an accountant.

You can:

• Choose compatible accounting software
• Record your own transactions
• Submit updates yourself

However, this depends on your:

• Confidence with bookkeeping
• Understanding of tax rules
• Time available

Why Many People Still Choose an Accountant for MTD

While MTD software automates some processes, this should still be reviewed and it doesn’t replace professional advice. Here’s where an accountant adds real value:

1. Ensuring Compliance

MTD has strict rules around:

• Digital record keeping
• Submission deadlines

An accountant helps avoid:

• Penalties
• Missed submissions
• Incorrect filings

2. Saving Time

Running a business is demanding. Managing:

• Software
• Bookkeeping
• Quarterly updates

…can take significant time.

An accountant frees you up to focus on:

• Growing your business
• Serving customers

3. Maximising Tax Efficiency

Software records numbers but doesn’t advise on:

• Allowable expenses
• Tax planning strategies
• Reliefs and deductions

An accountant can help make sure you:

• Don’t overpay tax
• Use all available allowances

4. Handling Complexity

MTD becomes more complicated if you:

• Have multiple income streams
• Are a landlord with several properties
• Are VAT registered and self-employed
• Have irregular or seasonal income

Professional support reduces errors and stress.

5. Support When Things Change

Tax rules evolve frequently. With MTD still expanding, an accountant helps you:

• Stay up to date
• Adapt quickly
• Avoid surprises

When You Might Not Need an Accountant

You may manage without one if:

• Your income is simple and consistent
• You’re confident using accounting software
• You understand tax rules well
• You’re happy to handle compliance yourself

Even then, many people still choose periodic reviews for peace of mind.

How an Accountant Helps with MTD (Practical Support)

At CJL Accountancy, we typically support clients with:

• Setting up MTD-compatible software
• Migrating from spreadsheets to digital systems
• Managing quarterly submissions
• Reviewing records for accuracy
• Providing tax-saving advice year-round

MTD FAQ

"Do I legally need an accountant for MTD?"

No, but you must comply with MTD rules. An accountant helps ensure you do this correctly.

"What software do I need for MTD?"

You must use HMRC-compatible software. Either bookkeeping software such as Xero, QuickBooks or similar, or spreadsheets and bridging software.

"Is MTD more work than Self Assessment?"

Yes, MTD requires quarterly updates for each business rather than a single annual return.

"Will MTD increase my taxes?"

No, but it increases reporting frequency and better records can improve tax efficiency.

"Can HMRC penalise me under MTD?"

Yes penalties will apply for late submission and non-compliance but these are suspended for 2026/27.

Final Thoughts: Is an Accountant Worth It for MTD?

While you can manage MTD yourself, lots of individuals and business owners find that an accountant doesn’t just keep you compliant, they save you time, reduce stress, and often save you money.

With MTD becoming more complex and frequent, professional support is increasingly valuable.

Need Help with Making Tax Digital?

If you’re unsure how MTD affects you, or want a straightforward, stress-free setup, CJL Accountancy can help.

We specialise in clear, practical advice for UK individuals and small businesses, helping you stay compliant without the jargon.

👉 Get in touch today to prepare for MTD with confidence.