Quick answer
HMRC doesn’t charge anything for MTD for Income Tax. The cost is the software you use, which ranges from free products on HMRC’s list to paid monthly subscriptions, plus any change in your accountant’s fees for handling quarterly updates.
Key facts
No HMRC fee
Software: free options exist; paid plans charge monthly or yearly
Accountant fees may rise to cover quarterly work
Software for your business may be an allowable expense
Software
HMRC’s list of compatible software includes some free products, often with conditions. Paid bookkeeping apps usually charge a monthly subscription. See free MTD software.
Accountants
If an accountant handles your updates, expect their fees to reflect four quarterly submissions as well as the final declaration. Ask what’s included before your first quarter.
Keeping costs down
Use bank feeds to cut data entry time
Keep records up to date monthly, so updates are quick
Pay for features you’ll use, not the top plan
See every HMRC-recognised product in our MTD software directory, listed alphabetically with HMRC’s own feature information.