Making Tax Digital is changing the way many sole traders and landlords manage and report their tax information to HMRC. For those affected, choosing the right accountant is no longer simply about finding somebody to prepare an annual tax return. You may need support with digital records, accounting software, quarterly updates and your final tax return throughout the year. So, what should you look for when choosing an accountant for Making Tax Digital for Income Tax?
Check They Understand the Current MTD Requirements
Your accountant should have an up-to-date understanding of who needs to follow Making Tax Digital for Income Tax and when.
The rules are being introduced gradually. Sole traders and landlords with qualifying income over £50,000 are required to use the system from 6 April 2026. This will extend to those earning over £30,000 from April 2027 and over £20,000 from April 2028.
An accountant should be able to establish whether the rules apply to you, explain when you need to start and help you understand what needs to be done without making the process unnecessarily complicated.
Look for Experience With Sole Traders and Landlords
Making Tax Digital for Income Tax primarily affects people receiving income from self-employment and property.
It therefore helps to choose an MTD accountant who regularly works with sole traders, landlords or both.
Their experience should extend beyond submitting information to HMRC. They should understand the practical challenges involved in managing business expenses, rental income and everyday financial records.
Someone familiar with your type of income is also more likely to identify problems in your records before important deadlines.
Ask Which Accounting Software They Support
Making Tax Digital requires compatible software.
HMRC states that software used for MTD needs to support digital records, quarterly updates and the submission of your tax return. Some taxpayers may use full accounting software, while others may use bridging software that connects to existing records, such as spreadsheets.
Before appointing an accountant, ask which software they use and whether it suits the way you currently manage your finances.
You should also find out whether software costs are included within their fee or charged separately.
Find Out What Digital Record Keeping Support Is Available
Keeping digital records is an important part of Making Tax Digital.
This does not mean that you need to become an accounting expert. Your accountant should be able to explain what information needs to be recorded, how you should provide receipts and invoices, and what you need to do throughout the year.
HMRC recommends creating digital records as close to the transaction date as possible to help keep your financial information up to date.
Good support should make this process easier, not simply add another administrative task to manage.
Check How Quarterly Updates Will Be Managed
Under MTD, information about your self-employment or property income and expenses is submitted to HMRC through compatible software every three months.
These quarterly updates are summaries of your records rather than separate tax returns.
Ask your accountant exactly what their quarterly service involves.Will they review your bookkeeping before an update? Will they remind you when information is required? Who is responsible for actually sending the submission?
Clarifying these points early can prevent confusion later.
Don’t Forget About the Year-End Tax Return
Quarterly reporting does not eliminate the need to address your overall tax position at the end of the year.
Your accountant should explain how they will review your records, make any necessary adjustments, add other relevant income or gains, claim appropriate allowances or reliefs and submit your tax return.
HMRC’s MTD process still requires taxpayers to prepare and submit a tax return through compatible software.
Make sure year-end support forms part of the service you are choosing rather than assuming it is automatically included.
Consider Communication and Availability
Technology may be central to MTD, but access to a knowledgeable person remains important.
Find out how you can contact your accountant when you have a question. Do they provide support by telephone and email? How quickly do they normally respond? Will you have a regular contact who understands your circumstances?
For taxpayers who want more hands-on Making Tax Digital support, Digital Tax Matters provides a specialist service to help individuals prepare for and manage the move to MTD.
The right level of support can be particularly valuable when you are using a new accounting system for the first time.
Understand Exactly What the Fee Includes
Do not compare accountants based on the headline price alone.Ask for a clear breakdown of what is covered. Depending on the service, this could include:
- Accounting or bookkeeping software
- Digital record keeping support
- Quarterly MTD updates
- Bookkeeping reviews
- Year-end calculations
- Tax return preparation and submission
- General tax queries
- HMRC correspondence
You should also ask whether there are circumstances in which additional fees may apply.A slightly higher fixed fee that covers everything you need may offer better value than a cheaper service with several additional charges throughout the year.
Questions to Ask Before Appointing an Accountant
Before choosing someone to manage your Making Tax Digital for Income Tax responsibilities, consider asking:
- Do I currently need to follow MTD rules?
- Do you regularly work with sole traders or landlords?
- Which accounting software do you support?
- Will you help me set up my digital records?
- Who prepares and sends my quarterly updates?
- Do you review my records before submitting information?
- Is my year-end tax return included?
- What happens if I have questions during the year?
- Are software fees included?
- Are there any additional charges I should know about?
Making Tax Digital means you are likely to have more regular interaction with your accounting records throughout the year. Choosing an accountant who can provide the right software, clear guidance and ongoing support can make that transition considerably easier.