MTD for Income Tax: do it yourself or use an accountant?

Written by the Quidtrail team · Facts last checked 18 October 2026

The short answer: either works. Making Tax Digital for Income Tax can be done yourself with compatible software, or by an agent (an accountant or bookkeeper) you authorise. You can also split the work, for example a bookkeeper doing the quarterly updates and an accountant doing the tax return (GOV.UK). Which suits you depends on how complex your affairs are, how much time you have, and how comfortable you are with software. We don't recommend one route or any firm.

What has to be done, whoever does it

1. Keep digital records of self-employment and property income and expenses (amount, date, category) (GOV.UK).
2. Send a quarterly update for each income source by 7 August, 7 November, 7 February and 7 May (GOV.UK).
3. Make year-end adjustments, add other income, and submit the tax return through software by 31 January (GOV.UK).

Side by side

How agents work under MTD

HMRC has two types of agent for MTD for Income Tax (GOV.UK):

• Main agent: can do almost everything you can, including submitting your tax return. The only things a main agent can't do are set up a Direct Debit for you or change how HMRC contacts you. You can have one main agent at a time.
• Supporting agent: can see your business and property income details and help with tasks such as quarterly updates. A supporting agent can't finalise your tax position, submit your tax return or see your tax calculation. You can have any number of supporting agents.

You can have a main agent with no supporting agents, or supporting agents with no main agent. Using more than one agent is possible for MTD for Income Tax only. For other services, such as Self Assessment, you can only use one agent. If several agents work on the same business, there must be one combined update for each period (GOV.UK).

Authorising an agent: the agent asks you to authorise them through their agent services account, and you see a consent statement showing what they'll be able to see and do. If an agent already acts for you on Self Assessment, they may be able to carry that authorisation over as your main agent. They'll still need to make sure you're signed up for MTD, and they can do that for you (GOV.UK).

Fees: what you can claim

• Sole traders: GOV.UK says accountancy fees "can count as allowable business expenses" when they're for business reasons. You can't claim "the cost of preparing and submitting your Self Assessment tax return" (GOV.UK).
• Landlords: GOV.UK lists "accountant's fees" among allowable expenses for a property business (GOV.UK). HMRC's manual says normal recurring accountancy fees for preparing property business accounts or agreeing the property business tax liability can be deducted. Personal fees, such as for preparing your tax return or working out Capital Gains Tax, can't (HMRC PIM2120).
• Software: for sole traders, software with regular licence payments is an allowable expense (GOV.UK). See MTD software costs for landlords.

Where a fee covers both business work and your personal tax return, only the business part may be deductible. Ask your accountant how their invoice is split.

Doing it yourself may suit you if…

(These points are general considerations, not a recommendation.)

• you have one income source, or a few simple ones
• your transactions are straightforward and you already keep tidy records
• you're comfortable using software or a spreadsheet with bridging software
• you have time each quarter to check your records

See free MTD software, the A to Z software directory and our quarterly checklist.

Using an agent may suit you if…

• you have several income sources, or both UK and foreign property
• you co-own property with different shares, or have complex expenses (such as finance costs or capital spending)
• you'd rather not deal with software
• you want someone else to handle year-end adjustments and the tax return

Digitally excluded? If an agent keeps your digital records and submits them using compatible software, HMRC says they can meet the MTD requirements for you, so you may not need to apply for a digital exclusion exemption (GOV.UK).

Questions to ask an accountant or bookkeeper

• Will you be my main or supporting agent for MTD?
• Who keeps the records, me or you? Which software do you use, and who pays for it?
• Will you send the quarterly updates, or just the tax return?
• What's included in the fee, and what costs extra (for example, extra income sources or year-end adjustments)?
• How will I see what's been sent to HMRC in my name?
• What happens to my records if I move to another firm? You must keep digital records for at least 5 years and be able to access them (GOV.UK).

Related: What is Making Tax Digital? · How to sign up · MTD software costs · MTD for landlords

Last checked against GOV.UK on 18 October 2026. Not tax advice.