Do you need an accountant for Making Tax Digital?
Making Tax Digital now applies to sole traders, landlords, and VAT-registered businesses. Here is what each group actually needs to do, and when an accountant makes sense.
Making Tax Digital is not one thing. It is a set of mandates that apply to different groups of taxpayers at different times, using different software, filing different returns. Whether you need an accountant depends on which mandate applies to you, how complex your finances are, and how much of it you want to handle yourself.
This is a plain breakdown of who MTD applies to, what it requires, and where an accountant adds genuine value.
MTD for Income Tax (sole traders and landlords)
If you are a sole trader or a landlord earning above £50,000 a year, MTD for Income Tax applies to you from April 2026. The threshold drops to £30,000 in April 2027.
What it requires: you submit a summary of your income and expenses to HMRC every quarter using compliant software. At the end of the tax year you submit a final declaration. The quarterly updates are not tax bills - they are running summaries. Your payment dates do not change.
The software has to connect directly to HMRC. Spreadsheets do not qualify. You need a product that is on HMRC’s approved list.
Do you need an accountant? Not necessarily. If your finances are straightforward - one income source, clear expenses, no complicated reliefs - you can do this yourself using compliant software. DoneTax handles property income. DoneSE handles self-employment. Both connect directly to HMRC and cost £4.99 a month.
Where an accountant earns their fee: if you have multiple income sources, are unsure what expenses you can claim, have had HMRC enquiries before, or simply do not want to think about it - an accountant is worth the cost. A good one will save you more than they charge.
MTD for VAT
If your business is VAT-registered, MTD for VAT has applied since 2022. You are required to keep digital records and submit your VAT returns using compatible software.
What it requires: your accounting software pulls transactions from your bank, you categorise them, the software calculates your nine-box VAT return, and you submit directly to HMRC each quarter.
Do you need an accountant? Most VAT-registered businesses handle this themselves once the software is set up. The nine-box return is mechanical once your transactions are categorised correctly. DoneVAT connects to your bank via open banking, categorises transactions automatically based on your history, and submits your return directly to HMRC for £4.99 a month.
Where an accountant adds value: if you have complex VAT arrangements, deal in exempt or partially exempt supplies, or trade internationally - get an accountant to review your setup. The filing itself is straightforward but getting the categorisation wrong compounds over time.
When to use the DoneLabs Accountant Directory
If you have decided you want professional help, the question becomes finding the right accountant. Not every accountant is set up for MTD. Some are still working from spreadsheets and email attachments. Some charge by the hour with no clear end in sight.
The DoneLabs Accountant Directory lists verified MTD-ready accountants across the UK who work with DoneTax+ - our agent platform. If your accountant uses DoneTax+, your data flows directly to them. No emailing spreadsheets. No chasing. They review your figures and submit on your behalf.
Every accountant in the directory charges a transparent flat fee per submission. You know the cost before you engage.
The directory is at donelabs.co.uk/directory. If you are an accountant reading this, you can list your practice free at donelabs.co.uk/directory/join.
DoneLabs builds MTD compliance software for UK taxpayers and the accountants who work with them. DoneTax, DoneSE, DoneTax+ and DoneVAT cover every current Making Tax Digital mandate.