Do I Need an Accountant for My Self Assessment? (MTD for Income Tax Explained)

If you are reading this article chances are you either do your own Self Assessment or you are questioning whether you should get an accountant. Many people manage perfectly well with a simple tax return when they start out. One source of income, a handful of expenses and a once-a-year form.

However the world of tax is changing. Making Tax Digital for Income Tax will soon become mandatory for most self employed individuals and landlords which means the days of annual spreadsheets and last minute panic submissions are coming to an end. What used to be one return per year will become five digital submissions, kept on approved software, with far more frequent reporting.

Before we talk about whether you need an accountant let’s break down what is actually happening.

What is Making Tax Digital for Income Tax?

Making Tax Digital for Income Tax Self Assessment (MTD ITSA) is HMRC’s plan to digitise the tax system for individuals. It will apply to:

• Self employed individuals
• Landlords with rental income
• People with multiple income sources exceeding the threshold

Instead of one yearly Self Assessment return, you will need:

• Digital record keeping
• Quarterly submissions (four per year)
• An annual “End of Period Statement”
• A final declaration

And all of this must be done through compatible MTD software. No more paper records. No more manual spreadsheets. No more logging into HMRC and typing numbers in.

This is a huge shift for anyone who currently files their return once a year.

Does this mean you must have an accountant?

You do not legally need an accountant. You can do it yourself if you are prepared to handle:

• Monthly bookkeeping
• Quarterly submissions
• Digital record keeping
• Software licensing
• Categorisation rules
• Adjustment entries
• Year end statements

This is far more work than the current system and many people underestimate how much time and accuracy it requires.

From my perspective the biggest issue is the frequency. You will no longer be able to “sort it out in January” because HMRC will expect updates all year long. This is where an accountant becomes far more valuable.

Why doing it yourself will become harder under MTD

When I speak to self employed clients many of them tell me the same thing. They manage their Self Assessment fine as long as it is once a year. But quarterly submissions require discipline, organisation and time.

Here are the challenges you will face if you attempt to go alone:

• You must keep digital records continuously
• You must use compatible software (not spreadsheets)
• You must submit four reports each year on time
• You must reconcile income and expenses properly
• You must make adjustments for home office, vehicles and mixed expenses
• You must handle corrections across multiple submissions

Missing deadlines or submitting incorrect information will result in penalties. Under MTD HMRC will have far more visibility which means mistakes will be picked up quickly.

This is where many people will struggle because tax will no longer be a once-a-year job. It becomes routine admin that must be maintained.

How an accountant helps under Making Tax Digital

When you work with an accountant under MTD you gain the benefit of structure, accuracy and consistency. We ensure:

• Your records are digital and compliant
• Your quarterly submissions are filed correctly
• Your software is set up properly
• Your bookkeeping is kept up to date
• Your year end statement matches your submissions
• Your allowable expenses are claimed correctly
• You avoid penalties and unnecessary tax

Most importantly we save you time. Under MTD your time becomes the biggest cost. Doing everything yourself means stopping every week or every month to maintain records. When you run a business that time adds up quickly.

Why having one accountant is better than using software alone

MTD-compatible software might seem like the easy answer but software alone cannot:

• Tell you if you are claiming expenses correctly
• Explain whether you should be a sole trader or a limited company
• Correct your tax planning during the year
• Identify if you are overpaying tax
• Help you avoid higher rate tax brackets
• Provide advice when your income changes
• Manage multiple income streams
• Assist with mortgages or lending
• Prepare your final declaration

Software is a tool. It is not a tax expert. Many people assume software will replace accountants but the reality is the opposite. MTD will make the system more complicated for individuals which increases the need for professional support.

Considerations if you are deciding whether you need an accountant

If you are unsure whether to get an accountant these questions will help you decide. When clients come to us this is exactly how we help them think it through.

1. Do you have more than one income source?
If you have self employment, rental income or dividends together, the return becomes more complex.

2. Do you struggle with bookkeeping?
If you are late, disorganised or overwhelmed, MTD will make this harder.

3. Do you have the time?
Quarterly submissions require consistent attention.

4. Are you confident with tax rules?
Mixed expenses, allowable claims and adjustments cause most errors.

5. Are you planning to grow?
If your business grows the tax complexity grows with it.

6. Do you want long term planning rather than just form filing?
Accountants help you plan income, pensions, investments and structure.

If you are honest with yourself you will probably already know the answer.

Drawbacks to consider honestly

Getting an accountant has drawbacks and I am always upfront about them.

The cost
Good accountants cost money. If your income is very low you may prefer to manage things yourself.

You must communicate properly
We cannot plan for you if you do not tell us what is happening in your business.

Not all accountants give real advice
Many firms only file returns rather than guide you. If you are shopping for an accountant you need someone proactive.

How we support clients moving to MTD

At Towerstone we work hand in hand with self employed individuals and landlords to prepare them for Making Tax Digital. We help clients transition onto software, tidy their records, prepare for quarterly submissions and create a structure that keeps them compliant without making their life difficult.

We also make communication flexible. While we do not offer weekend or in person evening appointments we do speak to clients on the phone during early evenings when needed to keep everything running smoothly.

Our goal is simple. Keep you compliant, keep your tax low and make sure you are ready long before MTD becomes mandatory.

The Bottom Line for Bedford Taxpayers

Do you need an accountant for your Self Assessment? Under the current system not always. Under Making Tax Digital almost certainly yes. The shift to digital records, quarterly submissions and stricter compliance means the workload is about to increase dramatically. A good accountant will save you time, reduce your stress and make sure you never fall behind as the rules tighten.

If you want support that keeps you ahead of the changes Towerstone can guide you every step of the way.