Written for the 2026/27 tax year. Checked against GOV.UK on 6 October 2026.
Making Tax Digital for Income Tax means keeping digital records and sending HMRC an update every quarter. At Wainwrights, Making Tax Digital compliance support is an add-on at £35 a month + VAT (£42 including VAT) for sole traders and landlords. This guide sets out what that sits on top of, what HMRC needs from you in 2026/27 and what we do. We’re based in Bromborough, Wirral, and work with clients across the UK.
Costs and key dates
| What | Figure | Source |
|---|---|---|
| Making Tax Digital compliance support | + £35 a month + VAT (£42 including VAT) | Our pricing page |
| Sole trader package | From £60 a month + VAT | Our pricing page |
| Landlord package, single owner with one property | From £20 a month + VAT (£24 including VAT) | Our pricing page |
| Who is in for 2026/27 | Qualifying income over £50,000 in 2024/25 | GOV.UK: if and when you need to use Making Tax Digital for Income Tax |
| Joining on 6 April 2027 | Qualifying income over £30,000 in 2025/26 | GOV.UK: if and when you need to use Making Tax Digital for Income Tax |
| Joining on 6 April 2028 | Qualifying income over £20,000 in 2026/27 | GOV.UK: if and when you need to use Making Tax Digital for Income Tax |
| Quarterly update deadlines for 2026/27 | 7 August 2026, 7 November 2026, 7 February 2027, 7 May 2027 | GOV.UK: before you use this guide |
| Tax return for 2026/27 | By 31 January 2028, through the software | GOV.UK: before you use this guide |
How much does Making Tax Digital support cost?
At Wainwrights it is an add-on at £35 a month + VAT (£42 including VAT), for sole traders and landlords. It sits on top of your package price. Prices are indicative, and our team confirms the scope and your final price when we quote.
Added to our starting prices, as a guide:
- Sole trader: from £60 a month + VAT, plus £35 a month + VAT for Making Tax Digital support (£95 a month + VAT in total).
- Landlord, single owner with one property: from £20 a month + VAT (£24 including VAT), plus £35 a month + VAT (£42 including VAT) for Making Tax Digital support: £55 a month + VAT in total (£66 including VAT).
- Landlords, joint owners with one property: from £25 a month + VAT (£30 including VAT), plus £35 a month + VAT (£42 including VAT) for each owner who needs Making Tax Digital support.
Sole trader prices are based on no employees and not being VAT registered. All prices are subject to turnover not exceeding £150,000. See how we price our services.
What does Making Tax Digital involve?
GOV.UK lists four things. You use compatible software. You create digital records of your self-employment and property income and expenses. You send HMRC a quarterly update every 3 months. After the tax year ends, you add any other income and submit your tax return through the software.
Quarterly updates are totals of your income and expenses. GOV.UK calls them summaries, not tax returns. Each one covers the tax year so far, not just the last three months, and one is still due if you had no income or expenses in the period.
There is still one tax return for the year. For 2026/27 it is due by 31 January 2028.
What do we do, and what do you do?
We get you ready for digital records and quarterly updates. The £35 a month + VAT add-on covers sending your four quarterly updates to HMRC for you. We also check your software works with Making Tax Digital before you start, and tell you which side of the threshold you are on and when that is likely to change.
GOV.UK says the digital records can be created and stored by you or by your agent. If you would rather not keep the records yourself, we keep records up to date for clients through our bookkeeping service. Bookkeeping is separate from the add-on and is quoted. Your tax return is part of your package.
For jointly owned property, the add-on is charged once for each owner who needs it. Each owner is tested on their own share of the income, so one owner can be in Making Tax Digital while the other is not.
Does the cost include software?
It depends on your package. HMRC does not provide software, so everyone in Making Tax Digital needs a compatible product.
Our sole trader package lists cloud bookkeeping software (QuickBooks, Xero or FreeAgent) and AI receipt capture (Apron). For landlord and personal tax return packages, we can provide your subscription and get any discounts available, or you can pay for it yourself. For landlords we recommend Hammock, which describes itself as Making Tax Digital compatible.
GOV.UK says you can keep using spreadsheets, but you will still need software that links to them, sometimes called bridging software, to send updates and submit your return.
Who has to use Making Tax Digital for Income Tax?
Sole traders and landlords registered for Self Assessment whose qualifying income is over the threshold. Qualifying income is your self-employment and property income added together, before expenses. For a start on 6 April 2026 the test was income over £50,000 in the 2024/25 tax year.
The threshold falls in each of the next two years, as the table above shows. For the detail, see our guides for sole traders and landlords.
What happens if a quarterly update is late?
For 2026/27, nothing in penalty terms: GOV.UK says HMRC will not apply penalty points for late quarterly updates in the first tax year. You still have to send every update before you can submit your tax return. Penalty points still apply for a late tax return, and there is a late payment penalty if you pay your tax bill late.
After 2026/27, each missed quarterly update or tax return deadline earns one penalty point. At 4 points you get a £200 penalty, and another £200 each time you miss a further deadline.
When should you get help?
Before the tax year in which you join, so your software and records are ready from the first day. If your qualifying income for 2025/26 was over £30,000, that means before 6 April 2027. GOV.UK says you can sign up yourself or ask your agent to do it.
If you are already in for 2026/27 and have not started, GOV.UK says that from September 2026 HMRC will start to sign up anyone who needs to use it for 2026/27 and has not signed themselves up, and that there is still time to sign yourself up or ask your agent to.
What do people ask about Making Tax Digital costs?
How much do accountants charge for Making Tax Digital?
Every firm sets its own fees. Ours is an add-on of £35 a month + VAT (£42 including VAT) for sole traders and landlords, on top of the package price. It covers sending your four quarterly updates.
Is Making Tax Digital support included in your sole trader price?
No. The sole trader package, from £60 a month + VAT, includes year end accounts, one Self Assessment tax return, cloud bookkeeping software and AI receipt capture. Making Tax Digital compliance support is an add-on at £35 a month + VAT.
Do I need Making Tax Digital support if my income is under the threshold?
No. If your qualifying income is under the threshold, nothing changes yet: you file one Self Assessment tax return a year. We’ll tell you which side of the line you’re on and when that’s likely to change.
Do I still need a tax return under Making Tax Digital?
Yes. Quarterly updates are summaries. You still submit a tax return for the year through the software, due by 31 January.
Which software do you use for Making Tax Digital?
QuickBooks, Xero or FreeAgent, and we recommend Hammock for landlords. QuickBooks is our preferred choice.
Can Wainwrights handle Making Tax Digital for me?
Yes. Making Tax Digital compliance support is an add-on at £35 a month + VAT for sole traders and landlords. Book a free call to go through your own figures with an accountant.
The thresholds change from one tax year to the next, and how they apply depends on your own figures. To talk yours through with an accountant in Bromborough, get a quote or book a free call.