Five filings a year instead of one — what Making Tax Digital really costs you

The arithmetic nobody spells out

Before April 2026, if you were a sole trader or a landlord, your tax year looked like this: one return, one deadline. You could leave it to January, have a grim weekend, and be done.

Under Making Tax Digital, that same year looks like this:

• 7 August — quarterly update
• 7 November — quarterly update
• 7 February — quarterly update
• 7 May — quarterly update
• 31 January — final declaration, and your tax payment

Five filings. Five dates. And crucially, records that have to be kept digitally, as you go — because you can't summarise a quarter you haven't recorded.

That last point is the real change. The old approach — a carrier bag of receipts and a push in January — stops working, not because it's against the rules, but because it's physically incompatible with reporting every three months.

What actually has to happen, four times a year

Strip away the jargon and each quarter comes down to this:

• Records kept digitally, in software that's compatible with MTD, covering everything in and out.
• Income and expenses categorised — because an update is a set of totals per category.
• The update sent by the 7th, covering the tax year to date. Even a quiet quarter needs one: if nothing came in or went out, you still have to send a nil update.
• Then the year-end — the final declaration that pulls it together, plus any other income you have, by 31 January.

None of that is hard, individually. The cost isn't difficulty. It's five occasions a year on which you have to remember, and be up to date.

So what does it actually cost?

Three things, and it's worth being straight about all three.

Your time

Bookkeeping that used to be deferrable is now continuous. How long that takes depends entirely on your volume — a landlord with one flat is not a courier with 300 jobs a month. But the shape of it changes: less of a January cliff, more of a steady drip.

Software

You need software that's compatible with Making Tax Digital — HMRC's requirement is that it creates digital records, sends quarterly updates and can submit your return. Products and prices vary quite a lot, and HMRC publishes a list of compatible software. Check it before you buy anything, because "accounting software" isn't automatically MTD-compatible.

The risk of getting a date wrong

This one's cheap this year and expensive next. For 2026/27, HMRC has confirmed there are no penalties for missing a quarterly update deadline. From 2027/28, late submissions start earning penalty points — reach 4 points and it's a £200 penalty, then £200 each further time.

Late payment is a separate matter and it bites now: 3% of the tax owed at day 15, another 3% at day 30, then 10% a year accruing daily from day 31.

What we charge, in full

Here's our pricing in its entirety, so you can compare it against anything else you're looking at.

£25 a month

• All four quarterly MTD submissions
• Your year-end tax return
• Ask us anything, all year — not billed by the question
• We chase you, not HMRC — you get reminders before the deadline, not after
• No setup fee. Cancel anytime. Switching from your current accountant is free

That's £300 a year, covering all five filings.

The first month is free

• Your first month costs nothing, so the first year is £275
• One per client — rejoining later does not start another free month
• Behind on past years? Late and catch-up returns are £150 each

Two honest notes on that. First, there is only one plan — whether Making Tax Digital applies to you or you just need one return a year, it is the same £25 a month, and you can stop once your return is filed. Second, if your situation is more involved than a sole trade or property — a limited company, VAT, payroll — just ask us and we'll tell you honestly whether we're the right fit before you pay anything.

When you genuinely don't need us

We'd rather say this plainly than have you find out after paying.

Doing it yourself is entirely realistic if:

• Your affairs are simple — one trade or one property, few transactions.
• Your records are already tidy and digital, or you're happy to make them so.
• You're comfortable with software, and you're the sort of person who hits deadlines without being chased.

If that's you, pick compatible software from HMRC's list, sign up for MTD, and diarise the four dates. Our MTD guide and the 7 November deadline post tell you what to file, free, with nothing gated.

It's worth handing over if: your income comes from several places, your bookkeeping has historically been a January problem, you've got property and self-employment tangled together, or — most commonly — you simply don't want five tax deadlines in your head. That's not a failing. It's just a reasonable use of £25.

Common questions