Do You Need an Accountant for Making Tax Digital?

The Short Answer

For most sole traders and landlords with straightforward tax affairs, no, you don't need an accountant for Making Tax Digital. Modern MTD software is designed to handle quarterly submissions, record-keeping, and tax calculations without professional help.

That said, there are situations where an accountant adds genuine value. The key is knowing which category you fall into — and not paying for professional fees when software can do the job for a fraction of the cost.

When Software Is Enough

If your tax situation ticks most of these boxes, you can likely handle MTD yourself with good software:

• Single income source: One sole trade or a small rental portfolio
• Straightforward expenses: Typical business costs like materials, travel, insurance, and office supplies
• No VAT: You're below the VAT threshold or already handle VAT separately
• No complex structures: No partnerships, trusts, or overseas income
• Comfortable with technology: You can use a web app and upload a receipt photo

If that sounds like you, a tool like TaxBridge can handle everything — digital record-keeping, quarterly submissions to HMRC, tax estimates, and your final declaration. All for a fraction of what an accountant charges.

When an Accountant Makes Sense

There are genuine reasons to use an accountant. Consider professional help if:

• Complex income: Multiple income streams, overseas income, capital gains, or partnership income
• Tax planning needs: You want advice on structuring your business (sole trader vs limited company), pension contributions, or dividend strategies
• HMRC investigation: If HMRC opens an enquiry into your affairs, professional representation is valuable
• Time constraints: Running a business is demanding, and some people prefer to delegate entirely
• First year of trading: An initial consultation can help you set up correctly and understand what's allowable

Even if you use an accountant, you may still want to use MTD software yourself for day-to-day record-keeping and give your accountant access at year-end. This is often cheaper than having them do everything.

The Cost Comparison

Let's be honest about the numbers:

• Accountant for sole trader: Typically £300–£1,000+ per year, depending on complexity and location
• MTD software: £0–£156 per year (TaxBridge is free or £12.99/month)

For a straightforward sole trader, that's potentially £800+ per year saved by handling your own MTD compliance. Over five years, that's £4,000 back in your pocket.

MTD software has also improved dramatically. Modern tools like TaxBridge are designed for people without accounting knowledge — they use plain English, guide you through each step, and handle the HMRC submissions automatically. It's not the same as wrestling with a spreadsheet and HMRC's website.

A Middle Ground: Software + Occasional Advice

Many sole traders find the sweet spot is using MTD software for day-to-day compliance and paying an accountant for occasional advice when needed — for example, a one-off consultation when you start trading, or advice before a major business decision.

This gives you the cost savings of DIY software with the reassurance of professional input when it matters. Most accountants are happy to offer ad-hoc consultations at an hourly rate.

Whatever you decide, make sure you have the right MTD software in place before April 2026. Whether you use it yourself or your accountant uses it on your behalf, HMRC-recognised software is mandatory. Read our full guide to MTD 2026 to understand what's required.

Frequently Asked Questions