How to Price Quarterly MTD Services: Fees, Packages & SLAs for Accountants

Introduction: why quarterly MTD services matter in 2026

Making Tax Digital for Income Tax (MTD ITSA) changes how sole traders, landlords and many small businesses report income to HMRC. From April 2026 the first compliance wave affects those with income above £50,000, followed by April 2027 (£30,000) and April 2028 (£20,000). For accountants this creates demand for reliable quarterly bookkeeping and submission services. This guide explains how to price those services, structure packages and write Service Level Agreements (SLAs) that protect you and give clients clarity.

Understand the regulatory timeline and client impact

Use the staged thresholds to plan capacity and pricing tiers. The key dates are:

• April 2026: MTD ITSA mandatory for individuals (sole traders and landlords) with income > £50,000
• April 2027: threshold reduces to income > £30,000
• April 2028: threshold reduces to income > £20,000

These are income tests, not profit tests, and they mean a rolling wave of clients will become liable. That makes predictable, repeatable quarterly packages attractive to both you and clients.

Decide your pricing approach: three common models

There are three practical approaches for accountants to price quarterly MTD services. Choose one or combine them depending on client complexity and value.

• Flat monthly/quarterly fee — simple for clients to understand and easy for you to scale. Best for straightforward sole traders and many landlords.
• Tiered packages — create Bronze/Silver/Gold packages with defined inclusions (number of transactions, payroll, bank feeds, support hours). Ideal for practices that want to segment by complexity.
• Value or outcome-based pricing — charge according to the perceived value or tax saved, rather than hours. Best for higher-income clients or those with complex tax planning needs.

What to include in a quarterly MTD package

Make your packages clear about what is included and what is extra. Typical inclusions are:

• Quarterly digital record checks and reconciliations
• Preparation and submission of quarterly updates to HMRC
• Basic bookkeeping corrections and categorisation of transactions
• Software licences (either included or billed separately)
• Email support and a defined number of advisory minutes per quarter
• End-of-year finalisation support: EOPS and the final declaration, or an optional charge for year-end completion

Be explicit about extras: payroll, CIS, VAT, bespoke tax planning, handling foreign income or multiple rental properties can sit outside a standard package or attract a surcharge.

Cost drivers to factor into fees

When setting prices, account for your true costs so your margin is sustainable. Key cost drivers include:

• Accountant and bookkeeper time for routine reconciliations, client queries and correcting errors
• Onboarding time for migrating clients into software and cleaning historic records
• Software costs (your practice accounting platform, HMRC bridging tools, client licences if included)
• Compliance risk and indemnity insurance costs
• Client-specific costs: transactions volume, use of cash vs accrual basis, multiple income streams
• Industry-specific costs (see below)

Industry-specific considerations

If you serve particular industries, factor those operating costs into pricing. For example:

• Tradespeople (plumbers, electricians): include mileage, materials and cash takings handling. High transaction volumes from card readers and EPOS systems may require more reconciliation time.
• Retail/e-commerce: account for integrations with EPOS and marketplaces, stock and multichannel sales which increase bookkeeping complexity.
• Construction/CIS work: pricing should include CIS return checks, confirmation statements and higher-touch record-keeping for subcontractor payments.
• Landlords: rental income schedules, multiple properties, deposit and tenant accounting, and specialised expenses such as letting agent fees or mortgage interest separation.

If your client is in a different sector, replace the examples above with their relevant costs: equipment, travel, on-site labour or specialist invoicing systems.

Sample package structures and suggested price bands

These are illustrative. Adjust for location, staff costs and client complexity.

• Basic (Sole traders / Small landlords): £30-60 + VAT per month (£99-180 pa billed monthly) — quarterly submissions, basic bookkeeping checks, email support.
• Standard (Most small businesses): £90-150 + VAT per month — includes more frequent reconciliations, limited monthly bookkeeping, one phone call per month and year-end finalisation at a set fee.
• Premium (Complex cases): £200+ + VAT per month — for clients with payroll, CIS, multiple property portfolios, e-commerce or bespoke tax advice. Often value-based pricing fits here.

Price per-quarter equivalents: multiply monthly by three or offer a small discount for quarterly billing. Some practices bill an onboarding fee (one-off) to cover migration and historic clean-up — typically £500-£1,500 depending on work required.

Setting Service Level Agreements (SLAs)

SLAs give clients certainty and protect your practice. An effective SLA for quarterly MTD services should include:

• Defined deliverables: what you will submit each quarter (e.g. quarterly update, reconciled bank(s), summary note of adjustments)
• Timings: when you will start work (e.g. within 5 working days of receiving bank statements) and deadlines for submission to HMRC (e.g. quarterly updates lodged within 10 working days after period end).
• Client responsibilities: when the client must supply receipts, bank feeds, payroll reports or third-party invoices. Make it clear late or incomplete information may delay submissions and incur extra charges.
• Response times: turnaround for routine queries (e.g. 2 working days) and urgent tax queries (e.g. 1 working day during business hours).
• Remedies and penalties: how you will handle missed deadlines caused by the client, including additional fees for late work or interest implications if HMRC penalties arise.
• Amendments and corrections: who is responsible for correcting prior period errors and how charges will be applied for retrospective adjustments.

Sample SLA clause wording (plain English)

Use firm, clear language. Example:

“We will prepare and submit quarterly digital updates to HMRC within 10 working days of receiving complete source data for the quarter. You must provide all bank statements, receipts and payroll reports no later than 5 working days after the quarter end. Missing or late data may delay submissions and may incur additional fees. We will notify you if an error in a previous period requires an amendment; additional charges may apply for historic corrections.”

Onboarding process and one-off fees

Onboarding usually requires significant effort. Charging a one-off fee protects your margins and makes long-term monthly pricing viable. Typical onboarding steps:

• Initial review of historical records to assess backlog
• Migration to an MTD-compatible accounting package and connecting bank feeds
• Cleaning or categorising up to a defined cut-off (e.g. up to 12 months of transactions)
• Setting up client-specific templates and reconciliation rules
• Creating a client onboarding checklist and training the client (or their staff) on using the software

Charge by scope: a small tidy-up might be £500-£1,000; a historic clean-up for a busy retail or construction business can be several thousand pounds.

Year-end finalisation: don’t hide the cost

Quarterly updates reduce surprises but do not eliminate the end-of-year work: EOPS (End of Period Statement) and the final declaration remain necessary. Decide whether your monthly/quarterly fee includes year-end finalisation or if you will quote separately. If separate, give clients an estimate and explain what would incur additional charges (e.g. VAT adjustments, complex relief claims, corrections to multiple years).

Handling errors, amendments and HMRC enquiries

Clients will sometimes submit incorrect data or miss deadlines. Clear terms in your SLA and engagement letter should outline:

• Who pays for correcting client-supplied errors
• How you charge for time spent dealing with HMRC enquiries caused by client records
• Turnaround for investigating historical discrepancies (e.g. quoted hourly rate or fixed fee bands)

Technology choices and their effect on pricing

Software is central to MTD. Some practices include client licences; others require clients to pay direct. Considerations when pricing:

• Complex integrations (EPOS, marketplace connectors, payroll software) take more time in setup and maintenance — reflect that in price.
• Spreadsheets still have a role, but HMRC requires compatible software for submitting updates. Avoid offering spreadsheet-only services as a long-term solution.
• Choose software that supports efficient batch processes and has a solid audit trail; faster workflows reduce your ongoing time and let you price more competitively.

Contract terms: cancellation, data access and exit fees

Protect your practice with fair contract terms. Common clauses include:

• Minimum engagement period (e.g. 3 months) to cover onboarding costs
• Notice periods for cancellation (e.g. 30 days) and how final billing is calculated
• Data access: clients retain rights to their data; provide a process and reasonable fee for exporting data on exit
• Outstanding work: how you will charge for incomplete periods at termination

Practical pricing tips for busy practices

• Start with a simple menu of services and standardise deliverables to reduce quoting overhead.
• Offer clear add-ons rather than bespoke hourly quotes for every small extra; clients prefer predictability.
• Regularly review and uplift prices to reflect changes in software costs, staff wages and regulatory workload.
• Segment clients by complexity and profitability; use tiered packages to guide sales conversations.
• Measure time spent per client for a few months and use that data to refine your pricing. Empirical data beats guesswork.

Special note for advisers to Limited Companies

If you advise Limited Companies, remember MTD for Corporation Tax is not mandated for 2026 (estimates currently suggest a later rollout, possibly 2028+). However, from March 2026 companies must use commercial software for CT600 filing. That increases software costs and complexity for company clients and may affect your fees. Make clear distinctions in your service literature between MTD ITSA quarterly services (for individuals/landlords/sole traders) and company compliance work.

Communicating value to clients

Clients are often sensitive to price increases. Focus discussions on value: fewer surprises, timely tax estimates, better cashflow forecasting and reduced risk of penalties. Use simple, reassuring language and explain how quarterly submissions reduce year-end stress and spread the compliance cost across the year.

Example fee schedule (concise)

• Onboarding clean-up: from £500 (small) to £3,000+ (complex)
• Basic quarterly package: £30-60 per month
• Standard package: £90-150 per month
• Premium package: £200+ per month or bespoke
• Year-end finalisation (if not included): £500-£2,000 depending on complexity

Final checklist before you price a client

• Identify the client’s turnover/income and confirm when they will become MTD-liable under the 2026–28 timetable.
• Estimate monthly transaction volume and integrations required (EPOS, marketplaces, payroll).
• Determine onboarding scope: historic tidy-up required?
• Agree the SLA: submission timings, client response times and dispute resolution.
• Decide whether to include software licences or bill clients separately.

Conclusion: balance clarity with fairness

Pricing quarterly MTD services is as much about clarity and communication as it is about numbers. Standardise deliverables, make client responsibilities explicit and charge fairly for onboarding and complexity. Do this and you’ll build a sustainable, scalable service that keeps clients compliant with the 2026–28 MTD rollout and reduces the annual year-end rush.

If you’d like a pricing template, SLA checklist or help modelling fees for a batch of clients, Tax Digital can help you design packages that are profitable and client-friendly. We make compliance easy and take the stress away while you scale with confidence.