Can my accountant do MTD for me? Yes. An authorised accountant can set up your MTD software, keep digital records, send quarterly updates to HMRC and file your Final Declaration. You still need to supply complete, timely income and expense records, and you remain responsible for meeting your MTD for Income Tax deadlines.
You are self-employed and working as a consultant. For years, your accountant has been handling your tax returns.
You mail your invoices, expense records and bank statements every January. They process your accounts, work out your tax and prepare your tax return for HMRC.
It has been a successful process from the beginning.
Then you hear about MTD for Income Tax and learn that digital records and compatible software are now part of the process, with updates every quarter.
Whether you still require software, how MTD authorisation works, and what part you still play in MTD in 2026, this article explains what your accountant can and cannot do
Do You Need to Join MTD for Income Tax in 2026/27?
MTD for Income Tax is being phased in by qualifying income. This is your gross self employment and property income added together, not your profit or your total income from all sources.
| Tax year tested | Qualifying income | You must start |
|---|---|---|
| 2024/25 | Over £50,000 | 6 April 2026 |
| 2025/26 | Over £30,000 | 6 April 2027 |
| 2026/27 | Over £20,000 | 6 April 2028 |
HMRC writes to people it identifies as in scope, but it does not sign you up automatically. If you think you are over the threshold and have not had a letter, check with your accountant. If you are below the threshold you can still sign up voluntarily.
Can My Accountant Do MTD for Me?
Depending on your arrangement, your accountant can:
- Help you determine whether you need to join MTD.
- Advise on suitable accounting software.
- Set up your digital accounting records.
- Review and reconcile your income and expenses.
- Submit quarterly updates to HMRC.
- Review year-end adjustments.
- Prepare and submit your MTD Final Declaration.
- Help calculate your tax liability.
- Monitor reporting deadlines.
But there are some differences in the process of managing the reporting and managing the financial information.
It is impossible to know what has taken place if it hasn’t been recorded or communicated to your accountant.
Think of MTD as a shared responsibility: your accountant manages the accounting and compliance process, while you provide accurate and timely financial information.
For instance, if you are a small consultancy, you might have your accountant do your accounting software and filings.
Remuneration, business purchases, cash transactions and other financial activity will still have to be filled out.
Do I Still Need MTD Software If My Accountant Does It?
Yes. When MTD for Income Tax is required, business records need to be kept in a digital format via software that is compatible.
Your accountant may provide or manage the software as part of their service.
However, using an accountant does not remove the software requirement.
MTD compatible software helps you:
- Record income digitally.
- Record allowable business expenses.
- Maintain digital records.
- Prepare quarterly updates.
- Send information to HMRC.
- Review financial information throughout the year.
There are different ways to manage this arrangement.
Option 1: Your Accountant Provides the Software
You can share invoices, expenses and bank transactions with your accountant through an accounting platform that may be offered by your accountant.
This can make communication easier, since they’re dealing with the same financial info.
Option 2: You Use Your Own Accounting Software
If you are already using accounting software which supports MTD, you can continue to use it.
Your accountant can have access to the same information and can submit the necessary information on your behalf, as long as permissions are granted and it is compatible.
Option 3: Bridging Software
If you’re keeping records on a spreadsheet, there may be bridging software available which will enable the relevant digital information to be passed to HMRC.
But there is still a need for the digital connections and documentation to be met.
Before deciding on a system, consult your accountant about the arrangement that’s best for you.
For official guidance, see:
HMRC: Choose Software for Making Tax Digital for Income Tax.
My Accountant Says I Can Just Send Quarterly Figures. Is That Enough?
This will depend on the way these numbers are calculated and whether the records that are used are compliant with HMRC’s expectations regarding the digital record keeping of these numbers.
If you just send your accountant a total of sales and expenses for each quarter, this will not meet MTD. A mere aggregate of sales and expenses reported quarterly will not meet MTD.
Your Tax Advisor requires enough data to keep proper digital records and submit the quarterly reports.
Suppose a graphic designer working for himself is sending the following figures to his accountant:
- Quarterly sales: £12,000.
- Quarterly expenses: £3,000.
While these totals may be helpful, the accountant will likely need additional information at the transaction level, including invoices, receipts and expense descriptions.
This provides an indicator of the accuracy of the figures and helps identify the allowability of expenses.
The important point: Quarterly totals are not a substitute for proper digital records.
Can I Keep Using a Paper Book or Spreadsheet?
Whilst it is acceptable to use paper records or spreadsheet as an aide to what you do record on paper, for MTD compliance you can’t sole rely on paper records if you do need to comply with MTD.
The relevant income and expenditure records should be kept electronically.
Appropriate bridging software and the necessary digital links can also be part of an MTD compatible arrangement in a spreadsheet.
For instance, you can enter business transactions into a spreadsheet and then feed that data into compatible bridging software that you use to inform HMRC.
But transferring figures from one system to another in a non-connected manner might not meet the digital-link requirements.
You should consult your accountant before you implement your proposed setup before the reporting period in which it is to be implemented.
Do I Have to Enter Every Day’s Takings?
No, MTD does not mean that you have to provide information to HMRC daily.
Typically, the reporting process takes place every three months.
Your digital records should be kept accurately, however, and in compliance with the applicable record keeping requirements.
For example if you are a shop owner, it may be possible to use an appropriate system or accounting software to log the sales of the day.
Those documents will then be used by your accountant to compile the quarterly reports.
Takeaway: Don’t give your accountant a loose end in the form of a tax report on the same day of the month the transaction was made, but keep in mind that you should fill in several months of transactions and never expect your accountant to figure it out.
How Do I Record Income When My Bank Shows It Net of Fees?
It’s a very common problem among businesses that use payment platforms.
If you are a seller of products for £1,000 and you use an online payment provider.
The provider pays £30 for the processing and deposits £970 into your bank account.
Your turnover could be under-estimated if you only record the £970 bank deposit as business income.
The correct accounting treatment would generally be:
| Particulars | Amount |
| Gross sales | £1,000 |
| Payment processing fee | £30 |
| Net bank receipt | £970 |
Your records should show the gross income and the relevant processing expense separately, where appropriate.
Your accountant can help reconcile payment provider statements with bank transactions.
This is particularly important for businesses receiving payments through card processors, online marketplaces and booking platforms.
How Do I Authorise My Accountant for MTD?
One important detail is that your accountant must have an Agent Services Account to manage MTD services.
Generally, the steps include:
Step 1: Check your accountant’s MTD readiness
Ensure that your Accountant is ready to provide support for MTD for Income Tax and has the systems in place.
Step 2: Confirm the agent’s details
You should have a discussion with your accountant about how they are going to ask for authorisation.
Step 3: Provide the required permission
Follow the authorisation process as carried out by HMRC, to allow your Accountant to gain access to the relevant services provided by HMRC with regards to Tax.
Step 4: Complete MTD sign-up
When the necessary authorisation has been obtained, your accountant will be able to assist you with the MTD registration process.
Step 5: Connect compatible software
Ensure that your accounting software is set up properly and is able to interact with HMRC.
One important detail is that an accountant may need an Agent Services Account to manage MTD services.
Existing Self Assessment authorisations may be recognised within the relevant agent arrangements, but your accountant should check that the necessary permissions are available.
You can find the official process here:
Making Tax Digital for Income Tax: Guidance for Agents – GOV.UK.
MTD Quarterly Deadlines and Penalties for Late Updates
If you use standard quarterly periods, the 2026/27 updates are due by 7 August 2026, 7 November 2026, 7 February 2027 and 7 May 2027. Your Final Declaration for 2026/27 is due by 31 January 2028.
Late updates are dealt with through a penalty points system. For people who had to start MTD for Income Tax on 6 April 2026, HMRC is not applying penalty points for late quarterly updates in 2026/27. The updates are still required, and this covers the first year only.
How Much Does an Accountant Charge for MTD?
There is no single fixed fee for MTD accounting services.
It will depend on factors such as your business complexity and what your accountant’s work involves.
Some bookkeepers and accountants offer MTD reporting as part of their bookkeeping and tax services.
Others charge an annual fee for tax returns and a quarterly fee for updates.
Factors influencing the fee include:
1. Number of transactions
A business with 30 monthly transactions will generally require less bookkeeping than one processing several hundred.
2. Number of income sources
If you have both rental income and self-employment income, your reporting requirements may be more complicated.
3. Quality of existing records
Well-maintained records reduce the time required for reconciliation.
4. Software costs
Some packages include software subscriptions, while others require separate payment.
5. Level of professional support
There is a difference between an accountant who simply submits quarterly figures and one who regularly reviews your records and provides tax planning advice.
What Should You Look for in an MTD Accounting Package?
Before agreeing to a service, check whether the quoted fee includes:
- Software access.
- Digital bookkeeping.
- Bank reconciliation.
- Quarterly updates.
- Annual tax return preparation.
- Final Declaration submission.
- Tax calculations.
- Additional support and advice.
A lower monthly fee is not necessarily the cheapest option if essential services are charged separately.
Ask for a clear breakdown of what is included.
What If My Accountant Misses a Deadline or Isn’t MTD Ready?
This is an important concern.
If you hire an accountant, you still have the responsibility to make sure that your tax obligations are fulfilled.
HMRC penalties can be faced depending on the circumstances even if your accountant has missed a deadline.
Reasonable excuses and other provisions that may apply may be relevant, however.
If your accountant isn’t MTD-ready, you should make sure to resolve the problem before you’re required to participate.
Consider taking the following steps:
- Inquire your accountant if they are ready to help you with MTD income tax.
- Verify the software they are using.
- Ask who will keep your electronically stored records.
- Determine who shall submit quarterly.
- Agree on internal deadlines for providing information.
- Acknowledge the procedures for errors and corrections.
It is also prudent to keep accounting records accessible to you and not solely rely on another person to keep them.
Understanding MTD Final Declaration Responsibilities
At the end of the tax year, your accountant may also help prepare and submit your Final Declaration, which replaces the Self Assessment tax return for people in MTD for Income Tax.
This involves checking:
- Total annual business income.
- Allowable expenses.
- Other taxable income.
- Relevant tax reliefs.
- Capital allowances.
- Year-end adjustments.
Your accountant can manage much of this work, but you should review the information before it is submitted.
What Should I Ask My Accountant About MTD?
Before committing to an MTD service, have a clear conversation with your accountant.
Here are some useful questions:
| Question | Why It Matters |
| Are you fully prepared for MTD? | Confirms their readiness |
| Which software will we use? | Helps you understand the technology |
| Do I need my own subscription? | Clarifies software costs |
| Who records my transactions? | Establishes bookkeeping responsibilities |
| Who submits quarterly updates? | Clarifies compliance responsibilities |
| Will you reconcile my bank transactions? | Helps maintain accuracy |
| Is the annual return included? | Avoids unexpected fees |
| What happens if information is submitted late? | Establishes accountability |
| Can I access my digital records? | Protects access to financial information |
What Is the Difference Between a Main Agent and a Supporting Agent?
Under certain agent contracts, a main agent may designate supporting agents, who will then undertake specific duties.
For instance, one tax professional could coordinate with you on your tax issues, while another service provider performs bookkeeping or software-related work.
It is important to know, who is responsible for each activity.
Not all individuals or businesses that are engaged in your accounting arrangement will be HMRC authorised to the same extent.
Discuss the arrangement with your accountant and determine who will be the one to make final submissions.
FAQs: Frequently Asked Questions
Do I need MTD software if my accountant files for me?
Yes. If you must submit the information using MTD, you will need to use compatible software to keep digital records and submit information to HMRC. The software can be provided or managed by your accountant.
Can I send my accountant my figures once a quarter?
Information sharing can be agreed at a quarterly basis, but the underlying records must comply with MTD’s record-keeping requirements for keeping them in a digital format. Simply sending unsupported totals may not be sufficient.
Can I keep a paper record book under MTD?
You can use paper records as supplementary records, but they cannot replace the required digital records if you are within MTD.
Do I have to record every day’s takings?
You do not have to submit daily updates to HMRC. However, your business transactions must be recorded digitally in accordance with the applicable requirements.
Can I enter the data and my accountant submit it?
Yes. You can keep digital records and get your authorised accountant to make and send the quarterly updates and Final Declaration.
Can my accountant take figures straight from my bank feed?
While bank feeds can assist with automating transactions, they are not always comprehensive enough to capture all business transactions or be sufficient to classify transactions accurately.
Your tax advisor might still require the invoices, receipts and other relevant details.
Is my accountant responsible if an update is wrong?
You are obligated to fulfill your tax obligations, while your accountant is responsible for the professional services he/she has agreed.
The figures should be looked at and accurate and complete information given.
What if my accountant isn’t MTD ready?
Talk about it right now, and come up with a strategy to meet the start date. Consider hiring an accountant if this is needed to assist MTD.
Conclusion
So, can my accountant do MTD for me?
Yes. An authorised accountant can take care of most of your MTD duties, such as setting up software, bookkeeping support, quarterly updates and submitting your Final Declaration annually.
MTD is not a completely hands off process, however, you will still have to be accurate with financial information, have access to your records and work with your accountant to make sure everything is accurate and on time.
The optimum scenario being what it is, the best situation is when the responsibilities are clearly defined, software is correctly set up, and communication is carried out throughout the year, not just before deadlines.
How MyIVA Can Help
The transformation of Making Tax Digital will have a profound impact on how sole traders and landlords report their income and expenses to HMRC.
MyIVA can make this transition a little easier by providing digital bookkeeping, quarterly reporting and annual tax compliance.
From choosing the right software to keeping your records up to date and managing your MTD submissions, professional accounting support can make the process easier.
MyIVA allows you to concentrate on your business, and trust that you will have the professional support to assist you with your accounting and tax needs.
