Making Tax Digital · 7 min read · 22 August 2026 · Written by the Filed Tax team

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

Most of what's written about Making Tax Digital is about software. But software isn't the problem you've got. The problem is that a job you used to do once a year now happens five times. Here's that arithmetic, honestly — including when you genuinely don't need anyone's help.

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:

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.

One thing it does not cost you: tax, four times a year. Quarterly updates carry no payment. They're summaries, not tax returns. Your bill is still calculated once and paid by 31 January, exactly as before. If you've read otherwise, that was wrong.

What actually has to happen, four times a year

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

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.

Or don't do any of it

We keep the digital records, file all four quarterly updates and do your year-end return — £25 a month, no setup fee, cancel anytime.

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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

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

£195, one-off

Two honest notes on that. First, the monthly and the one-off aren't competing — if you're in MTD you need the quarterly updates doing, which is the monthly plan; if you just need one year's return sorted, the one-off is better value and we'll tell you so. 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:

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.

Before you pay anyone, check you're even in MTD yet. It applies from April 2026 only if your gross self-employment and property income was over £50,000. The threshold drops to £30,000 in April 2027 and £20,000 in April 2028. Under that, you're still on one annual return — our free 30-second check will tell you where you stand.

Common questions

How many times a year do I file? Five — four quarterly updates plus a final declaration.

Do I pay tax quarterly? No. Updates carry no payment. Tax is still due 31 January.

Do I have to buy software? You need MTD-compatible software if you're filing yourself. If we do it for you, there's nothing for you to buy or learn.

What does done-for-you cost? £25 a month all-in, or £195 for a one-off single-year return.

Can I switch mid-year? Yes — switching is free, and we'll pick up wherever your records currently are.

Five deadlines, or none

We handle Making Tax Digital end to end — quarterly updates, year-end return, and questions whenever you have them. From £25 a month.

See pricing →

Related guides

This guide is general information, not personal tax advice. Figures and dates are for the 2026/27 tax year and can change at each Budget — always confirm the current position on GOV.UK or ask us to check your situation.

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