Pre-filled with typical Hospitality figures: 15 employees, £24,000 average salary. Adjust the sliders for your actual numbers.
MTD Compliance Cost Estimator
Making Tax Digital for Income Tax requires quarterly digital reporting. Estimate your total cost: software, accountant uplift, time, and migration.
£20k£24,000£200k
Your MTD Deadline
Not yet affected
Year One Cost
£1,130
Software£180/yr
Training (8hrs)£200
Accountant uplift£350/yr
Quarterly filing time (8hrs)£200/yr
Data migration (one-off)£200
Ongoing Annual Cost
£730 /year
Hospitality — Key Concerns
- High proportion of minimum-wage staff means NI and NLW increases hit hardest
- Tight margins (5-15%) leave little room to absorb cost increases
- Business rates reform may provide relief for smaller premises
Making Tax Digital Cost Estimator for Other Industries
Recommended Tool
FreshBooks
Accounting software built for small business owners. Invoicing, expenses, tax reporting — MTD-compatible from day one.
Start Your Free FreshBooks Trial →Frequently Asked Questions
- When does Making Tax Digital start?
- MTD for Income Tax applies from April 2026 for self-employed and landlords with income above £50,000, and from April 2027 for income above £30,000.
- What software do I need for MTD?
- You need HMRC-compatible software that can maintain digital records and submit quarterly updates. Options include FreshBooks, Xero, QuickBooks, and others.
- Can my accountant handle MTD for me?
- Yes, but accountants will typically charge more for the additional quarterly filing work. Budget for £300-£500 extra per year in accountant fees.