Tax

Setting up for Making Tax Digital.

A practical walkthrough — software, bank feeds, and whether to DIY or hand it to an accountant.

3
Setup steps
2
Routes: DIY vs accountant

Three steps to get set up

Step 1
Choose HMRC-recognised MTD software. Options range from spreadsheet-plus-bridging-software to full accounting packages with bank feeds built in.
Step 2
Connect your business bank account(s) so transactions feed in automatically, cutting down on manual data entry.
Step 3
Sign up for MTD for Income Tax via your HMRC online account (or have your accountant do this on your behalf) ahead of your mandatory start date.

DIY vs accountant

DIY

Lower ongoing cost. Works well if your affairs are relatively simple (e.g. locum income from a handful of sources) and you're comfortable with basic bookkeeping software.

Accountant-managed

Higher cost, but valuable if you have a limited company, rental property, multiple income sources, or simply want quarterly submissions handled without adding it to your own to-do list.

A middle ground

Many self-employed clinicians do their own day-to-day bookkeeping in software with bank feeds, then have an accountant review and submit the quarterly updates and final declaration — combining lower cost with a safety check.

FAQ

Not necessarily — many accountants can work with the records you already keep, provided they're digital and can be submitted through MTD-compatible software on their end. Ask your accountant what they'd prefer before buying anything.

MTD for Income Tax applies to your personal self-employed and property income; your limited company has separate corporation tax obligations. Keeping the two clearly separated in your records (and likely in your software) avoids confusion at submission time.