If you live in the UK and earn money through self-employment or property income, then yes, your accountant can take care of most (if not all) of the MTD process. For many landlords, sole traders, and small business owners, it’s often the simplest and least stressful way to stay compliant.
As experienced Making Tax Digital accountants, we take a closer look at what’s changing and how working with an accountant can help. For MTD advice that’s tailored to your unique situation, get in touch with Treetops Chartered Accountants today.
How will Making Tax Digital for Income Tax affect my current accounting setup with my accountant?
Making Tax Digital for Income Tax is changing how your tax affairs are managed. If your qualifying income from property, self-employment, or both exceeds the threshold.
Taxpayers with gross combined income from property and self-employment in the 24/25 tax year will be mandated to file quarterly submissions from April 2026. The threshold falls to £30,000 from April 2027, and £20,000 from April 2028.
If you fit into these categories, you’ll need to follow the new Income Tax rules from the relevant tax year.
If you already work with an accountant, the good news is you’re not starting from scratch. But there are a few key changes you need to be aware of.
Shift from annual to quarterly reporting
Before, you’d be expected to submit one Self-Assessment tax return each year. But with MTD, this changes to quarterly updates. Instead of reviewing everything at the end of the tax year, your rental or business income will need to be shared with HMRC quarterly.
| What your accountant does to help Your accountant can handle these quarterly updates for you, making sure everything gets submitted on time and helping you meet every submission deadline and avoid penalty points. |
Mandatory digital record keeping
As part of MTD for Income Tax, you’ll be required to keep digital records of your income and expenses using MTD-compliant software. These records should include the amount, the date, and the category for each transaction. It’s not too different from the prior Self-Assessment system, but it must be done regularly and must be digital.
| What your accountant does to help If you currently rely on paper records or spreadsheets, this may be a shift. But your accountant can help you move to a system that works for your self-employed trade or property business. |
Changes to accounting processes
The move to digital reporting means your accounting processes will become more regular and structured. Rather than gathering everything once a year, you’ll need to keep records up to date throughout the year. This can help you see your finances much more clearly and make things much easier when it comes to making business decisions and managing finances.
| What your accountant does to help With the right support, your accountant can manage this process for you, from software setup to ongoing submissions, as long as you give them permission to do so. |
New responsibilities for both parties
MTD introduces new responsibilities for both you and your accountant. The first step for you is to provide your accountant with permission to manage your taxes and contact HMRC on your behalf. This lets them do the bulk of the heavy lifting. From there, you’ll still need to collect all transactions yourself, provide bank feeds and information more frequently, and pay the final bill when it’s due. Your accountant can handle the rest.
| What your accountant does to help As your supporting agent, your accountant can look after your digital records, make sure you’re using HMRC recognised software, submit quarterly updates, and prepare your final declaration and final tax return. |
Hiring an accountant for MTD vs MTD software
When it comes to MTD for Income Tax, it’s natural to think that picking the right MTD software is the biggest decision you’ll have to make. But really, it’s about how that software gets used. That’s where an accountant can make all the difference.
Yes, you’ll still need functional compatible software to meet MTD requirements. But software on its own won’t be able to:
- Double-check that your records are correct
- Make sure all of your income sources are included
- Provide personalised guidance and tax advice
- Deal with complicated transactions
- Prevent errors that might lead to penalties
- Think outside the box
For many landlords and business owners, combining software and accountant support works best.
It gives you the structure needed for compliance, plus expert guidance that prevents mistakes, keeps you informed of any changes, frees up your time, and gives you peace of mind about your numbers.
Need support with Making Tax Digital?
At Treetops Chartered Accountants, we’re here to support you through every step of Making Tax Digital. Whether you’re self-employed, a landlord, or simply unsure about what MTD means for you, our dedicated team is ready to help.
What if I don’t use accounting software?
If accounting software isn’t right for your business, or if you’re digitally exempt, you can continue using spreadsheets to keep records. But, to do this, you’ll also need special bridging software that connects your records to HMRC for submissions.
This also means you or your accountant will need to keep everything organised and accurate manually.
Treetops’ accountants can help you find the best setup for your business. And, if you do feel that bridging software provides the best option, we can also provide you with a free spreadsheet designed to work with your selected bridging application.
Want to make MTD simple? Let Treetops handle it for you
With the right support, Making Tax Digital can run smoothly in the background while you focus on your work, your properties, or taking a well-earned rest from tax. At Treetops, we help you navigate the new system and stay ahead with tailored support and expert advice.
If you have any questions or need support with MTD, please email us at [email protected]. Our MTD team checks this inbox regularly, so you will get a quick and accurate reply. You can also contact us by phone or through our online form.
Frequently asked questions about Making Tax Digital accountants
Do I still need accounting software if I’m using an accountant?
Yes. Under MTD rules, you must use MTD-compatible software to keep digital records and send updates to HMRC. However, that doesn’t mean you have to manage it all yourself. Your accountant can use their own software or help you use yours properly, so everything is compliant without creating extra work for you.
Will I need to set up an agent services account on behalf of my accountant?
We can walk you through this. You might need to authorise us as your main agent through your HMRC tax account, but we’ll explain exactly what’s needed and help you get it sorted. You won’t be left to work it out on your own.
Will my accountant provide me with free software?
This really depends on how your accountant works. For example, at Treetops Chartered Accountants, we use our own software, which is MTD-compliant and carefully chosen to support our clients’ businesses and needs.
Still confused about Making Tax Digital? Check out this guide:
