MTD Compliance Cost Calculator
Calculate your total annual Making Tax Digital compliance costs. See exactly what you'll spend on software, time, and accountant fees.
Your Annual MTD Compliance Costs
💡 Cost-Saving Alternative
Our MTD Readiness Toolkit (£14 one-time payment) includes:
- Complete software comparison guide (12 MTD platforms reviewed)
- Step-by-step setup instructions for free/cheap options
- Quarterly submission checklist (reduces time to 1 hour per quarter)
- Record-keeping templates (spreadsheets if you don't want expensive software)
- Compliance calendar (never miss a deadline)
Break-even: The toolkit pays for itself if it saves you even 1 hour of accountant time.
Get the MTD Readiness Toolkit
Everything you need to comply with Making Tax Digital for £14 — less than 20 minutes of accountant time.
View Toolkit — £14 →How We Calculate These Costs
Software Costs
DIY: £10-15/month for basic MTD software (FreeAgent, QuickBooks Self-Employed, Crunch). Some free options exist but lack features.
Hybrid: £20-30/month for mid-tier software with better reporting (QuickBooks, Xero, Sage).
Outsourced: £30-40/month for premium software with accountant access (FreeAgent, Xero with advisor access).
Time Costs
Quarterly submissions: 1-3 hours per quarter (4x/year) depending on transaction volume and software familiarity.
Record-keeping: 30 minutes to 2 hours per month (depends on receipts, invoices, reconciliation needs).
Annual totals: 10-40 hours/year depending on your approach and efficiency.
Accountant/Bookkeeper Costs
DIY: £0 (you do it all) or £200-300 for annual review.
Hybrid: £50-100/quarter for bookkeeper review + £300-500 annual tax return = £500-900/year.
Fully Outsourced: £100-150/month for full bookkeeping + quarterly MTD submissions = £1,200-1,800/year.
Tech Confidence Impact
High: You'll learn software quickly (less time cost).
Medium: Moderate learning curve (average time cost).
Low: Higher time cost OR you'll need more accountant help.