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£55,000£200k
Your MTD Deadline
April 2026
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
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.