Do I need an accountant to manage Making Tax Digital submissions?

Do I need an accountant to manage Making Tax Digital submissions?

Making Tax Digital (MTD) has changed how many UK businesses and landlords keep records and send tax information to HMRC. For some people, MTD feels like a straightforward tech upgrade: keep your records digitally, submit the right figures through compatible software, and move on. For others, it feels like a new layer of rules, deadlines, software choices, and process changes that can easily go wrong if you’re busy running a business.

The big question many people ask is simple: do you actually need an accountant to manage Making Tax Digital submissions, or can you handle it yourself?

The honest answer is that you don’t always need an accountant just to “press the buttons.” Many people can manage MTD submissions themselves. But an accountant can be valuable for far more than submission mechanics, especially when accuracy, compliance, time, and peace of mind matter.

This article walks through what MTD submissions involve, what you can realistically do yourself, when an accountant is likely to be a good investment, and how to decide based on your circumstances.

What “Making Tax Digital submissions” really means

To decide whether you need an accountant, it helps to separate the idea of “submitting” from everything that leads up to it. Submitting data is usually the easiest part. The harder part is maintaining compliant digital records and making sure the numbers you submit are correct.

In practical terms, Making Tax Digital typically involves:

1) Keeping business records in a digital format (not just scanning receipts, but recording transaction data digitally).

2) Using MTD-compatible software (or bridging software) to send required information to HMRC.

3) Making submissions on time and in the right format.

4) Maintaining a “digital link” between systems where required (so you aren’t manually copying and pasting figures in ways that break the rules).

Depending on what tax you’re dealing with and how your affairs are set up, you may be dealing with VAT submissions, income tax reporting for self-employed/landlords, or other obligations as the programme expands. The core idea stays the same: digital records and digital submissions.

The difference between compliance and convenience

Plenty of people can comply with MTD without an accountant. If you have simple transactions, consistent sales and expenses, and a tidy record-keeping habit, MTD software can guide you through most of what you need. However, compliance is not the same as convenience, and convenience is not the same as accuracy.

For example, you might be able to submit VAT returns using software easily, but still accidentally misclassify key items, reclaim VAT incorrectly, miss reverse charge rules, or treat mixed-use expenses in the wrong way. The software will rarely “know” you’ve made those judgement calls incorrectly, because it can only work with what you enter.

An accountant’s value often comes from judgement, process design, and error prevention rather than the act of submission itself.

When you can usually manage MTD submissions yourself

Many people successfully manage MTD submissions without professional help. You’re more likely to be fine on your own if most of the following apply:

You have straightforward finances

If you have a single trade, a consistent business model, a manageable number of transactions, and no unusual VAT or tax issues, your bookkeeping is likely to be simpler. A small service business with a few invoices a week and a handful of monthly expenses is often easier to manage than a retail business with daily takings, refunds, inventory, and multiple payment platforms.

You’re comfortable with software and processes

MTD is as much about routines as it is about rules. If you’re comfortable learning software, setting up bank feeds, categorising transactions, and reconciling accounts, you can often run a compliant process without an accountant. If you’re the kind of person who enjoys systems, you may even find that MTD pushes you into better habits that improve your financial visibility.

You already keep good records

If you’ve always kept receipts, recorded income properly, and separated personal and business spending, MTD may feel like a natural extension. If you are starting from messy records, piles of paper, or “I’ll sort it at year-end,” then MTD can feel overwhelming—and that’s when help becomes valuable.

You have time to stay on top of it

Time is a big factor. Digital record keeping and regular submissions require ongoing attention. If you have time each week or month to reconcile transactions, chase missing documents, and ensure entries are correct, you can usually manage. If you’re constantly firefighting in your business, the admin may slip until deadlines become stressful.

You’re willing to learn the basics of VAT or tax rules relevant to you

You don’t need to become a tax expert, but you do need to understand the key rules that affect your entries. For VAT, that might include what you can reclaim, how to treat fuel and mileage, how to handle EU or overseas services (where relevant), and how to deal with mixed-use costs. For income tax reporting, it might include which expenses are allowable, how to treat capital purchases, and what evidence you should retain.

If all of the above sounds manageable, you may not need an accountant just for MTD submissions.

What an accountant actually does in an MTD world

It’s easy to imagine an accountant’s role as “submitting the return.” In reality, accountants often help in ways that reduce risk and improve outcomes. Here are some of the main areas where an accountant adds value:

Setting up the right bookkeeping system

Choosing software is one thing; configuring it correctly is another. An accountant can help you set up chart of accounts, VAT codes, tracking categories, bank feeds, rules, invoice templates, and workflow routines. A good setup reduces mistakes and saves time over the long term.

Ensuring correct VAT treatment

VAT errors can be costly and are surprisingly common, especially when businesses have mixed income streams, unusual suppliers, partial exemption issues, reverse charge scenarios, or frequent entertaining and travel expenses. An accountant can review entries, spot patterns of mistakes, and give guidance on specific edge cases.

Keeping you compliant with digital record-keeping requirements

MTD isn’t just “use software.” It can include requirements around digital links and maintaining records in specific ways. An accountant can help you avoid processes that create compliance risks, such as copying and pasting figures between spreadsheets and software in a way that breaks digital link expectations.

Reducing stress and preventing missed deadlines

Deadlines come around quickly, especially if you’re juggling VAT, payroll, self-assessment, and business management. Accountants often run structured reminders and workflows to ensure submissions happen on time, and they can step in when unexpected issues occur (software problems, missing records, cashflow disruptions, staff changes).

Helping you understand what the numbers mean

MTD pushes more frequent reporting, which can be a benefit if you use the data to steer your business. An accountant can help you interpret your management reports: margins, cost trends, cashflow patterns, and tax provisioning. This is where professional input can move beyond compliance and into better decision-making.

Planning and optimisation

Even if you can submit correctly, you may not be paying the right amount of tax at the right time without planning. Accountants can advise on business structure, expense treatment, timing of purchases, pension contributions, and other legitimate planning areas that affect your overall tax position.

So, do you need an accountant? Maybe not for the technical act of submission. But potentially yes for accuracy, control, and strategy.

Common DIY pitfalls with MTD submissions

If you’re thinking of going it alone, it helps to know the traps people fall into. These aren’t meant to scare you off; they’re meant to help you decide whether your situation is simple enough to manage confidently.

Misclassification of expenses

Bookkeeping software typically relies on you choosing categories. When people are rushed, they pick something “close enough.” Over time, this can distort your figures, cause incorrect VAT recovery, and create messy year-end accounts.

Examples include treating capital purchases as day-to-day expenses, misclassifying motor costs, or mixing personal and business costs without appropriate adjustments.

Incomplete records and missing receipts

MTD doesn’t remove the need for evidence. If you reclaim VAT or claim expenses, you generally need supporting documentation. Many DIY bookkeepers forget to attach documents, lose invoices, or fail to keep the right details. If HMRC ever asks questions, the quality of your records matters.

Not reconciling properly

Bank feeds are convenient, but they are not a substitute for reconciliation. Payments can duplicate, fail to match, or come through with unclear references. If you don’t reconcile bank and control accounts, you can end up submitting figures that don’t reflect reality.

Confusion over “payments” versus “invoices”

Depending on your accounting basis (cash basis or accrual), your records need to reflect the right timing. Some people record income when they invoice, others when they get paid, and some do a mix. Software won’t necessarily stop you from mixing methods incorrectly, but the result can be inaccurate submissions.

VAT scheme complexity

If you’re on a special VAT scheme (such as Flat Rate Scheme, Cash Accounting Scheme, Annual Accounting Scheme, or you deal with partial exemption or retail schemes), DIY bookkeeping can become more complex. It’s still possible, but the risk of subtle errors rises.

Overconfidence created by “it let me submit”

One of the biggest dangers is assuming that because the software accepted your submission, it must be correct. HMRC systems check format and connectivity, not the commercial reality behind your figures.

When an accountant is strongly recommended

Even confident business owners often benefit from professional help in certain situations. You might not need a full-service package, but having an accountant involved can reduce risk.

You’re new to business or newly VAT registered

If you’re starting out, you’re already learning pricing, marketing, customer management, and cashflow. Adding bookkeeping and VAT rules on top can be a lot. Early mistakes can also be painful, because they tend to compound over time.

An accountant can help you establish correct habits from day one. Even a short initial setup and training session can be a good investment.

You have messy books or you’re behind

If your records are inconsistent, incomplete, or months behind, DIY MTD can become stressful. Many people only realise they need help when a deadline is near and the data is not ready. Accountants can help you catch up, clean up, and set up a maintainable process.

Your transactions are high volume or complex

High transaction volume increases error risk. Multiple payment processors, foreign currency, inventory, subscriptions, chargebacks, and refunds can create complicated bookkeeping flows. In these cases, an accountant can help design a system that automates as much as possible and ensures accurate categorisation.

You have multiple income streams

If you have a main trade plus side income, property income, online sales, or consultancy work, the tax treatment can differ across streams. Keeping everything separate and correct takes care. An accountant can help ensure you aren’t mixing categories and missing allowable expenses or reporting incorrectly.

You’re worried about penalties or HMRC attention

If you’ve had issues in the past, received queries, or you’re simply anxious about getting it wrong, an accountant can reduce the mental load. The cost of professional help can be lower than the cost of repeated corrections, time lost, and stress.

You want better business insight, not just compliance

Compliance keeps you out of trouble, but insight helps you grow. If you want to understand profit drivers, plan cashflow, prepare for financing, or scale operations, an accountant can add value beyond submission tasks.

Hybrid options: you don’t have to choose “all DIY” or “all accountant”

A common misconception is that you either do everything yourself or hand everything over. In reality, many businesses use a hybrid approach that balances cost and control.

Option 1: You do bookkeeping, accountant reviews and submits

This is a popular model. You keep records throughout the period, and your accountant reviews the figures before submission. The accountant can correct obvious issues and advise on edge cases. You retain day-to-day control but reduce risk.

Option 2: Accountant sets up the system, you run it

If your main worry is software and process, you can pay for an initial setup, training, and periodic check-ins. This works well for people who are capable but want to start with a proper foundation.

Option 3: You do most entries, outsource the tricky bits

You might handle routine expense categorisation and invoicing, but ask an accountant to handle VAT scheme specifics, partial exemption calculations, year-end adjustments, or complex reconciliations.

Option 4: Fully outsourced bookkeeping and submissions

If time is your most scarce resource, outsourcing can make sense. Many businesses treat finance admin as something to delegate so they can focus on sales, service delivery, and management.

The right option depends on your goals: saving money, saving time, reducing risk, or getting better financial insight.

Cost versus value: how to think about the decision

When weighing whether you “need” an accountant, it’s tempting to focus only on the monthly cost. A better approach is to compare cost against the value you receive and the risks you avoid.

The true cost of DIY is not just software

If you do it yourself, you’ll likely pay for accounting software anyway. But you’ll also spend time learning it, maintaining it, and fixing mistakes. That time has an opportunity cost: time you could spend serving customers, marketing, developing products, or simply resting.

The cost of mistakes can be higher than fees

Errors can lead to incorrect tax paid, late payment surprises, or penalty exposure. Even if penalties don’t arise, you may lose money by failing to claim legitimate expenses, reclaim VAT correctly, or plan for tax efficiently.

Peace of mind has value

For many business owners, the biggest benefit is psychological. Knowing that a professional is keeping an eye on compliance can reduce anxiety, especially around deadlines.

Practical questions to help you decide

If you’re unsure, work through these questions as a quick self-assessment:

1) How confident am I in my bookkeeping accuracy? If you often feel uncertain, professional support will likely pay for itself.

2) How much time can I realistically commit each month? If you can’t commit time consistently, you may struggle with ongoing digital record-keeping demands.

3) Are my transactions simple and repetitive, or varied and complex? Complexity increases error risk and reduces the usefulness of “generic” software guidance.

4) Do I understand the key rules that affect me? For example, if you are VAT registered, do you understand what you can and cannot reclaim? If you’re self-employed, do you know what counts as an allowable expense?

5) What happens if I get it wrong? Consider not just penalties, but cashflow disruptions, time spent correcting, and stress.

6) Do I want my numbers to help me run the business better? If you want clear reporting, forecasting, and planning, an accountant can be a strategic partner rather than a compliance cost.

If you choose to do it yourself: how to make DIY MTD safer

If you decide you don’t need an accountant right now, you can still take steps to reduce risk and improve the quality of your submissions.

Keep business and personal finances separate

Use a separate business bank account if possible. This single step makes categorisation, reconciliation, and audit trails much cleaner.

Reconcile regularly

Don’t wait until the last minute. Weekly or monthly reconciliation prevents small issues becoming big ones, and it makes submissions far less stressful.

Attach documentation as you go

Get into the habit of uploading receipts and invoices promptly. If your software allows it, attach documents directly to transactions.

Use consistent categories and rules

Set up bank rules carefully and review them periodically. Automation is great, but only if it’s accurate.

Keep a simple “edge cases” list

When you encounter a transaction you’re unsure about, note it and research it properly rather than guessing. Over time, you’ll build your own reference list of how you treat common tricky items in your business.

Consider an annual or quarterly professional check-up

You don’t have to commit to full services. A periodic review can catch recurring errors, confirm that your process is compliant, and improve your confidence.

What to expect if you hire an accountant for MTD submissions

If you decide to bring in an accountant, it helps to understand how the relationship typically works so you can set expectations and choose the right level of service.

They will ask about your current process

Expect questions about your software, bank accounts, invoicing approach, VAT scheme (if relevant), and how you currently store records. This isn’t nosiness; it’s how they assess risk and determine what needs improving.

They may recommend changing or simplifying systems

An accountant might suggest consolidating tools, cleaning up the chart of accounts, or improving workflows. Sometimes the biggest time savings come from removing unnecessary steps.

They will set a timetable and responsibilities

Good accountants clarify who does what. For example, you might be responsible for uploading receipts and raising invoices, while they handle reconciliations, reviews, and submissions. Clear responsibilities reduce misunderstandings.

They should explain what they need from you

Accountants can’t work well with missing information. A good accountant will tell you exactly what documents, reports, or approvals they need and by when.

They can help you interpret results and plan ahead

One of the most useful things you can ask is not “can you submit this,” but “what do these numbers tell us?” That’s where the value often multiplies.

A balanced conclusion: do you need an accountant?

You don’t automatically need an accountant to manage Making Tax Digital submissions. If your finances are simple, you’re comfortable with software, and you can maintain good habits, you can often manage MTD yourself. For many small businesses and landlords, DIY is entirely workable.

However, needing an accountant is not just about capability—it’s about priorities and risk tolerance. If your situation is complex, your time is limited, you’re uncertain about rules, or you want more confidence that your records are correct, an accountant can be a smart investment. They don’t just submit; they help you build a reliable process, reduce errors, and use your financial data to make better decisions.

The most practical approach is to treat it as a spectrum. You can start with DIY, add a professional review as your business grows, or outsource more as complexity increases. The right choice is the one that keeps you compliant, reduces stress, and supports your business goals without creating unnecessary cost.

If you’re on the fence, consider a middle path: keep your own records in MTD-compatible software and pay for an accountant to review periodically or handle the first few submissions while you learn. That way you gain independence without taking on all the risk alone.