Making Tax Digital changes the mechanics of tax reporting for landlords, but it does not automatically remove the need for an accountant. Whether you need one depends on the complexity of your tax affairs and how comfortable you are managing your own tax reporting.
MTD software has changed the reporting landscape significantly. The following tasks no longer require accountant involvement:
These were historically the main reasons landlords used accountants for their annual return, gathering information, completing the return, and filing it. MTD software now handles all of this directly.
Even with good software, there are situations where an accountant's expertise adds real value:
Selling a property triggers a capital gains tax calculation. This is outside the scope of Making Tax Digital but must be reported separately to HMRC, often within 60 days of completion. An accountant can calculate your gain correctly, taking into account allowable costs, improvements, and any reliefs.
An accountant can advise on tax-efficient structures for your property portfolio, whether that means holding properties personally or through a limited company, how to handle inherited properties, or how to manage the transition between ownership structures. This is strategic advice that software cannot provide.
Many landlords with a straightforward rental portfolio, a handful of properties, all in personal ownership, with no complex income from other sources, will find that they can manage their MTD obligations using software without professional help.
The quarterly submission process is not technically difficult, and the Final Declaration is guided step by step throughout, with HMRC calculating the tax due automatically. Most landlords are already familiar with gathering their income and expense information each year to share with their accountant. If you have been doing that, MTD software requires no more effort, you are simply sharing that same information with the software directly, rather than with a person.
SimplifyMTD is designed for landlords who want to manage their own MTD obligations without relying on an accountant for every submission. It handles the technical connection to HMRC, guides you through each quarterly update and the Final Declaration, so you remain in control of your own reporting.