Do You Have to Do MTD Even if You Have an Accountant?

One of the most common questions we hear from sole traders is this: "I already have an accountant — does MTD ITSA still apply to me, or do they handle it?" It's a fair question, and the answer might surprise you.

The short answer

Yes — MTD ITSA applies to you regardless of whether you have an accountant. The obligation is yours, not your accountant's. If your income is over £50,000, you are legally required to comply with MTD ITSA from April 2026. What changes is who does the work to make it happen.

What actually changes under MTD ITSA

Under the old system, most sole traders with accountants had a fairly simple arrangement: you'd hand over your records once a year, your accountant would prepare your Self Assessment return, and that was it.

MTD ITSA changes this fundamentally. Instead of one annual return, you now need to submit four quarterly updates to HMRC, plus a final declaration in January. Each quarterly submission requires up-to-date digital records of your income and expenses for that three-month period.

This means the work is now spread across the year, not crammed into one January visit.

What your accountant should be doing

If you have an accountant who is set up for MTD, they should be:

• Using HMRC-compatible software connected to your accounts
• Preparing and submitting your quarterly updates on your behalf
• Keeping your digital records up to date throughout the year
• Providing you with quarterly tax estimates so you know what's coming
• Handling your final declaration in January

If your accountant is doing all of this, great — you're compliant and you don't need to change anything. The question is whether your fees have gone up to reflect the additional quarterly work, and whether the service you're getting is good value.

What if your accountant isn't set up for MTD?

This is more common than you'd think. Many smaller accountancy firms have been slow to adapt to MTD, particularly for sole trader clients. Signs that your accountant may not be MTD-ready:

• They're still only contacting you once a year
• They haven't mentioned anything about quarterly submissions
• They're asking you to use software they haven't set up for you
• They haven't discussed how your records need to be kept digitally

If this sounds familiar, you have a problem — because the legal obligation to submit quarterly is yours, even if your accountant hasn't told you about it. Missing quarterly deadlines earns penalty points, and those points accumulate even if you didn't know the deadline existed.

Has your accountant's fee increased?

MTD ITSA means significantly more work for accountants — four submissions a year instead of one, ongoing record management rather than a once-a-year catch-up. If your accountant is doing all of this properly and hasn't increased their fee, it's worth asking why. If they have increased their fee significantly, it's worth comparing what you're paying against alternative options.

Do you still need a full accountant for MTD?

For most sole traders with straightforward finances, the honest answer is no. What you actually need for MTD compliance is:

• Digital record-keeping throughout the year
• Quarterly submissions to HMRC
• A final declaration in January
• Ongoing tax estimates so you know what's coming

None of this requires a qualified accountant — it requires a good bookkeeping service. A traditional accountant is the right choice if you have complex finances: multiple income streams, property income alongside self-employment, or situations requiring genuine tax advice and planning.

For straightforward sole trader finances, a dedicated bookkeeping and MTD compliance service like TaxChill does everything required for MTD at a fraction of the cost of a traditional accountant.

What does TaxChill cost compared to an accountant?

Traditional accountants typically charge £500–£2,000+ per year for sole trader accounts. Since MTD, many have added quarterly charges on top of that.

TaxChill handles everything MTD requires — bank categorisation, quarterly submissions, tax estimates, final declaration, and WhatsApp support — from £50 per month (£600 per year). No surprise fees, no annual price increase, and no chasing you for records in January.

Read our full comparison in do I need an accountant for MTD ITSA?

Frequently asked questions

Can my accountant handle MTD for me without me doing anything?

Yes — if they're set up correctly for MTD, your accountant can manage the entire process. You just need to make sure they have access to your digital records throughout the year, not just in January.

Does having an accountant mean I'm automatically MTD compliant?

No. Having an accountant doesn't automatically mean you're compliant. You need to confirm that your accountant is actively submitting quarterly updates on your behalf using HMRC-approved software.

What happens if my accountant misses a quarterly deadline?

The penalty points go on your account, not your accountant's. You are legally responsible for compliance. If your accountant misses a deadline, you bear the consequences — which is why it's important to stay informed about your submission schedule.

Should I switch from my accountant to a bookkeeper for MTD?

It depends on your situation. If your finances are complex and you need tax planning advice, keep your accountant. If your finances are straightforward and you're mainly paying for MTD compliance, a bookkeeping service is likely better value. Book a free call with us and we'll give you an honest assessment.

I have an accountant but they haven't mentioned MTD — what should I do?

Contact them directly and ask what their plan is for your MTD submissions. If they're not set up for it or are proposing to charge significantly more, it's worth exploring your options. You can WhatsApp us for a quick no-obligation conversation about whether we'd be a better fit.