The countdown to Making Tax Digital for Income Tax Self Assessment (MTD ITSA) has begun. Many UK accounting firms are already preparing themself by upgrading software, training staff, and helping clients adjust. But with so much extra work involved, how should accountants charge fairly?
MTD ITSA is more than a compliance update. It changes how services are delivered, how often work is done, and how accountants value and price their expertise. In this blog, we will analyse the questions every firm asks about pricing under MTD ITSA.
What is MTD ITSA and why is it a big change?
By April 2026, all sole traders and landlords with income over £50,000 need to maintain digital records and send quarterly updates to HMRC, followed by an end-of-period statement and a final declaration.
At the same time, those earning over £30,000 will need to comply in 2027. That’s at least six submissions per year per client, which is a big leap from the current one-time Self Assessment.
Why does pricing need a rethink?
In the past, before MTD ITSA, many accountants billed their clients annually. There was only one big tax return and one-time fee. But now, under MTD ITSA, everything has changed. You’re now doing more work more often. That means:
- More client communication
- More record-keeping checks
- More data reviews
- More opportunities for error correction
- More technology to manage it all
Doing six times the work and charging the same annual fee is not a good idea. So, here are a few things to consider:
1. The ‘one-and-done’ pricing model is no longer suitable
In the old Self Assessment system, many clients disappeared for most of the year and came back in January with a box of receipts. You sorted it, charged them, and that was it.
With MTD ITSA, things are different. It needs regular engagement all year round. That means moving from reactive work to proactive support, and your fees should show that. You’re no longer just filing returns; you’re giving ongoing help and oversight.
So what does this mean for pricing?
It’s time to look at monthly subscriptions, tiered service packages, and value-based pricing.
2. Consider subscription-based pricing?
Subscription-based pricing or monthly fixed fees are a major trend emerging post-MTD. That means, instead of billing once per year, accountants are setting up recurring monthly payments. They cover quarterly submissions, software access, year-end adjustments, and advisory time.
Why it works:
- Predictable income for your firm
- Easier budgeting for clients
- Continuous engagement (so clients don’t disappear for months)
Tip: You can group MTD ITSA services into simple monthly packages like Bronze, Silver, and Gold. It will be based on submission volume, complexity, and whether the client wants add-ons like business advice or bookkeeping.
3. How value-based pricing works for your business?
Accountants have often charged less than their work is really worth. Billing only for time doesn’t show the true value of your knowledge, advice, and the responsibility you carry.
That’s why MTD ITSA is a good chance to change the way you talk about fees. Clients aren’t just paying for “compliance” anymore. They’re paying for:
- Peace of mind
- Real-time financial visibility
- Staying compliant with HMRC
- Avoiding penalties
- Strategic guidance
Value-based pricing mostly focuses on outcomes, not hours. This is worth it to your client to have you do everything for them accurately, on time, and without stress.
4. Would tiered pricing help your clients and firm?
No clients of yours are the same. Some are side hustlers, some are landlords, and others are full-time freelancers with bigger needs. When there is a tiered pricing model, they can pick the services that fit them best.
For example:
Tier | Features |
Basic | Quarterly updates only, digital record-keeping tools |
Standard | Quarterly updates + year-end support + email queries |
Premium | All of the above + unlimited advice + VAT + CIS + forecasting |
It shows that you understand every client is different and doesn’t need the same level of help.
- Some clients only want the basics, like digital record-keeping and quarterly updates.
- Others want more support, like forecasting, VAT, or quick advice when they need it.
When you offer flexible packages, your clients feel more in control and know they’re getting good value. And as their business grows, your service also grows with them.
5. How to consider software costs?
MTD ITSA requires all your clients to use compatible software, and someone has to foot the bill. Whether you:
- Include software costs in your monthly fee,
- Pass them directly to the client, or
- Partner with software providers for discounts…
…you need to price it in. Undercharging or forgetting this can erode your margins quickly.
So, check out freemium tools that clients choose themselves, but don’t integrate well with your systems. In the long run, a messy tech stack leads to more manual work and reduced profitability.
6. Is communication part of your pricing strategy?
Many clients won’t understand what’s changing, why it matters, or why they suddenly need to pay you more.
You must educate and justify your new pricing model:
- Break down the added workload (from 1 return to 6+ submissions)
- Explain the compliance risk of non-submission
- Emphasise the value of staying digital and up-to-date
- Show how your monthly model offers continuous support
Pricing is as much about perception as it is about numbers. Be confident and transparent.
7. Can outsourcing help keep your pricing competitive?
We know what you might be thinking: “If I raise prices too much, I’ll lose clients.”
This is where outsourcing to a trusted partner like Stellaripe can help. By delegating the time-intensive parts of MTD ITSA—like processing the quarterly submissions, bookkeeping checks, or software data reconciliation—you can:
- Keep your overheads low
- Increase capacity without hiring
- Focus on advisory and relationship-building
- Maintain competitive pricing while protecting margins
At Stellaripe, we work behind the scenes under your brand, so you stay in control while delivering MTD-compliant services seamlessly and affordably.
Final thoughts: Don’t undersell yourself
MTD ITSA is more than a regulatory update. It is a shift in how accountants work and how clients engage with their finances. Sticking to old pricing models risks undervaluing your services and overloading your team.
So, now is the time to build a pricing structure that is sustainable, scalable, and client-focused. Don’t wait until 2026. Start testing new approaches, communicate clearly with clients, and position your firm as a forward-thinking partner.
At Stellaripe, we support UK accountants with flexible outsourcing solutions that fit well into your MTD workflow. We help you stay efficient, profitable, and ready for what’s next. Get in touch with our team today!
