Making Tax Digital · Accountants
Unbundled software and professional fees: a clearer model for practices
ONLY£15A MONTHClients can understand a technology charge and a professional fee when each has a clear purpose.
Clients can understand a technology charge and a professional fee when each has a clear purpose. Separating them can make scope and price changes easier to explain. It works best when the practice also explains who supplies the software, who supports it and who remains responsible for the tax work.
Explain the two services
Software provides agreed tools and access. The professional service provides the specified bookkeeping, review, filing or advice. Neither label tells the client what is included without a scope description.
An unbundled model can prevent a rising licence cost from being silently absorbed into a fixed retainer. A bundled model can still be sensible where the total price and service are clear. The commercial choice should follow the client's needs and the practice's actual delivery costs.
Avona.app's entry-level price is £15/month. Avona Concierge separates professional retainers from software. Check current terms rather than assuming a public price is a wholesale rate or that an integration is included in every arrangement.
Explain cancellation, access to historical records and handover. A client should know what happens if professional support ends but the software remains, or the reverse.
Worked example: making the total visible
| Element | Illustrative monthly amount, excluding VAT |
|---|---|
| Software | £15 |
| Professional retainer | £60 |
| Combined total | £75 |
The annual combined amount is £900 before VAT, assuming twelve unchanged monthly charges. Calling this a £60 all-inclusive service would hide part of the cost. It also says nothing about whether annual-return work is included.
Make responsibility visible at each stage
An effective practice process identifies who supplies the records, who resolves queries, who reviews the figures and who submits. Record those responsibilities in the engagement and workflow. Do not rely on the assumption that somebody else has completed the final step.
Agent authorisation is also separate from client consent to a commercial service. Use HMRC's correct MTD authorisation process and the agent's own access. A client should not hand over their Government Gateway password simply to make the process more convenient. HMRC explains how to authorise an agent.
Track each relevant business and period. A green client-level indicator can hide an outstanding property update if the sole-trade update has been completed. Store the approved figures and acknowledgement against the correct record.
For recurring work, use a short exception list rather than sending the client every transaction again. Give each question a reference, amount and clear request. Access controls and a secure reply route matter, especially where the same practice handles several family members or businesses. Good workflow design reduces repeated questions without replacing professional judgement.
Choose software by the work it needs to do
Start with your actual income sources and records. A sole trade, a UK property business and foreign property can involve different requirements. A product suitable for one set of circumstances is not automatically suitable for every annual-return item you might have.
HMRC's software guidance allows different approaches, including software connected to existing spreadsheets. Check the complete workflow: importing or recording transactions, reviewing the quarterly summary, submitting it, making corrections and completing the annual return.
Try a representative sample that includes a refund, a private transaction, a cash item and an awkward bank description. Ask how the system handles a missing period and how you export records if you leave. These questions are more informative than a long feature list.
Software support and professional tax advice are different services. Confirm who answers each kind of question, when help is available and what the quoted fee covers. Avona.app's entry-level self-service price is £15/month; professional services and additional product capabilities should be checked against the current scope rather than assumed to be included.
A review that checks more than the total
Start with coverage: the correct person, business and period, plus all relevant accounts and cash records. Then look at completeness. A feed can be connected today while still missing an earlier week. Confirm the earliest and latest transactions against the source.
Next, inspect unusual items. Large transfers, loan receipts, refunds, net settlements and private purchases often need more context than a bank description provides. Check for duplicate imports where a statement overlaps a live feed. An automatic warning is useful evidence to investigate, not proof that the entry must be removed.
Finally, review category totals. A category unexpectedly showing zero, a large increase or a negative amount deserves an explanation. You do not have to make every annual tax adjustment at this stage, but you should understand the records behind the summary you approve.
HMRC explains what quarterly updates contain. Keep the approved version and the resulting acknowledgement together. If something later changes, correct the source record and use the software's supported update process so you can explain which figures are current.
Put scope beside price
State transaction limits, review frequency, filing responsibilities and treatment of catch-up work. Identify who bills each element and who handles support. Transparent pricing is most useful when it is accompanied by equally transparent responsibilities.
Take the next step
Avona.app offers a self-service route from £15/month. Bring your records together, review the figures and choose a workflow that fits your business. For professional help, discuss the scope and total price of Avona Concierge, managed by chartered accountants, before choosing a service.