If Making Tax Digital for Income Tax applies to you, one of your first questions is probably: what will an accountant charge me? There is no single price. But there are clear things that push the cost up or down, and knowing them helps you compare quotes fairly.
Key takeaways
- MTD adds four quarterly updates and a final declaration each year.
- Fees usually depend on your income sources, how tidy your records are, and how much support you want.
- A cheap headline fee can leave out software, catch-up work, or HMRC letters.
- Always get the scope in writing before you sign.
What does an MTD accountant actually do?
Under MTD, you keep your income and expenses in digital form throughout the year. Every quarter, an update is sent to HMRC. At the end of the year there is a final declaration. An accountant can set up your software, check your records each quarter, send the updates, and file the final declaration for you.
For the rules on who must join and from when, read our guide to MTD for Income Tax eligibility.
What affects the price?
| Factor | Why it changes the fee |
|---|---|
| Number of income sources | Self-employment plus rental income means more to record and report. |
| Volume of transactions | More transactions mean more checking each quarter. |
| State of your records | Messy or missing records take longer to sort out. |
| Software | Some firms include it. Others expect you to pay for your own. |
| Level of support | Advice calls and tax planning cost more than filing alone. |
How to compare quotes fairly
A low monthly fee is not always the cheapest option. Before you choose, ask each firm the same questions:
- Are all four quarterly updates and the final declaration included?
- Is MTD-compatible software included, or do I pay separately?
- What happens if my records are behind?
- Who deals with HMRC letters, and is that charged extra?
- Is the fee fixed, and what would make it change?
Our MTD compliance service starts from £49 a month. You can see what is included on our pricing page or read more about the MTD compliance service.
Worked example (illustrative)
"Dana", an illustrative example, is a self-employed private hire driver with one income source and neat digital records. Her workload each quarter is small, so a basic MTD package fits. Now compare "Sam", another illustrative example, who has self-employment and rental income, and a year of records to catch up on. Sam's work is bigger, so Sam should expect a higher fee and possibly a one-off charge for the catch-up.
Common mistakes
- Choosing on price alone. A very low fee may exclude the work you actually need.
- Leaving it late. Starting close to a deadline can cost more and leaves no time to fix errors.
- Assuming software is free. Check whether you need to buy an MTD-compatible product yourself.
Frequently Asked Questions
How much does an MTD for Income Tax accountant cost?
It depends on how much work is involved. Most firms price on a monthly or yearly fee that covers quarterly updates and the final declaration. At Berber Accounts & Tax, MTD compliance starts from £49 a month. See our pricing page for what each level includes.
Is the accountant's fee tax deductible?
Fees for accounting and tax return preparation that relate to your self-employment or property business are generally allowable business expenses. Check the current HMRC guidance or ask your accountant about your own position.
Do I still need software if I hire an accountant?
Yes. MTD requires digital records kept in MTD-compatible software. Many accountants include software in their fee or work with the software you already use. Always ask which is covered.
What is usually not included in a low monthly fee?
Common extras are catching up on old records, dealing with HMRC letters or enquiries, registering you for other taxes, and advice calls beyond an agreed limit. Ask for a written list of what is in and out.
Can I do MTD myself and skip the accountant?
Yes, if you are confident keeping digital records and sending accurate quarterly updates. The risk is mistakes and missed deadlines, which can lead to penalties. Many people prefer to pay for peace of mind.
Related reading
How Berber Accounts & Tax helps
We are a London-based, specialist gig-economy and MTD accounting practice working with fixed monthly fees. If you would like this handled for you rather than doing it yourself, we can help.
Schedule a consultation →Written by the Berber Accounts & Tax team, 124 City Road, London EC1V 2NX, United Kingdom.
Last reviewed: 20 September 2026.
This article is general information, not personal tax advice. Speak to a qualified accountant about your own circumstances before acting on it.