MTD - The Real Cost

Making Tax Digital: The Real Monthly Cost  

If you’re a small business owner in the UK, Making Tax Digital (MTD) means you need digital records and timely digital submissions. That can create two separate costs you should plan for — the accounting software subscription and the managed bookkeeping/accountancy service. Here’s the clear breakdown so you can budget with confidence. 

• Xero (software): £16 per month + VAT — this is the platform for digital records 
• Oblako (accounting support service): £20 per month + VAT — checking quarterly MTD returns and one annual self-assessment tax return. 

If you choose both, the combined monthly cost before VAT is £36 per month, giving you the software and the accounting support required to meet MTD obligations. 

What you get; 

• Xero (£16 + VAT): digital accounting platform, file MTD returns, bank feeds, invoicing, cash flow reports and records storage. 
• Oblako (£20 + VAT): dedicated bookkeeping service. We make sure that your books are MTD-ready, file quarterly MTD returns on your behalf, and include one annual self-assessment tax return.  

Why this package is a good deal? 

• Predictable, fixed monthly cost: £16 + VAT (software) + £20 + VAT (service) = £36 + VAT per month — easy to budget. 
• Peace of mind: filings done on time and correctly, freeing you to run the business. 
• Avoid paying variable accountancy fees for routine bookkeeping and MTD returns which can be far more when those tasks are billed hourly or per-return. 

Quick cost comparison; 

• DIY with software only: £16 + VAT/month — but you still need to find time to prepare your own books and submit returns 
• Traditional accountant packages: often £50–£200+/month depending on complexity — for similar bookkeeping + filing services. 

Who this is best for? 

• Micro and small businesses that need full MTD compliance without variable accountancy bills 
• Business owners who prefer to outsource bookkeeping and filing to experts 
• Business owners who want a fixed monthly cost 

So, what is the true cost of managing MTD? 

The cost of a combined digital accounting platform with accounting support is just £10 per week. If that sounds interesting and is within your budget, why not get in touch for a quick demo? We look forward to hearing from you. 

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