Making Tax Digital (MTD) for Income Tax adds new running costs for landlords and sole traders: compatible software, and either your own time or an accountant's fee to handle five submissions a year instead of one. This guide lays out each cost so you can compare doing it yourself against having it done for you.
The four costs of MTD
| Cost | Doing it yourself |
|---|---|
| MTD-compatible software | Roughly £10–£35 per month, depending on the package |
| Your time | Several hours per quarter on record-keeping and filing |
| Setup & learning | One-off: HMRC registration, software setup, learning the system |
| Penalty risk | HMRC's points-based penalties if a quarterly deadline slips |
Software on its own isn't the whole answer
Compatible software lets you file, but it doesn't do the bookkeeping, tell you what counts, or make sure each quarterly deadline is met. You still have to keep digital records, categorise transactions correctly, and submit four quarterly updates plus a final declaration. For many people the time and stress are the bigger cost, not the licence fee.
What a done-for-you service costs
A managed service rolls the software, the bookkeeping and every filing into one monthly fee. With MTD Go:
| Plan | First year | Then |
|---|---|---|
| Standard (one income source) | £44.50/month | £79/month |
| Complete (multiple properties, or property + self-employment) | £69.50/month | £119/month |
| 2025/26 tax return add-on (optional) | £200 one-off | |
That includes HMRC registration and agent authorisation, QuickBooks set up for you, all four quarterly filings, your End of Period Statement and final declaration, and support — with a 14-day money-back guarantee on your first payment.
The honest comparison: DIY software is cheaper on paper, but you carry the time and the deadline risk. A done-for-you service costs more per month but removes both — useful if your time is worth more spent on your business or property than on quarterly admin.
Don't forget the penalty side
Under MTD, late submissions attract points that build towards a fine. One forgotten quarter is no longer just a slip — it counts against you. Part of what you're paying for with any structured solution is simply not missing deadlines.
Figures here are general guidance for 2026 and will vary by provider and situation — they aren't a personalised quote or tax advice. Confirm your own position with a qualified accountant.
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