Making Tax Digital (MTD) for income tax is set to significantly change how sole traders and landlords meet their tax obligations. While many accountants are already familiar with MTD through VAT, the move to MTD for Income Tax Self Assessment (ITSA) brings new complexities — more frequent submissions, increased client involvement, and greater pressure on firm workflows.
For accountancy firms, the key to a smooth transition lies in preparation. Below are six practical steps accountants can take to help clients adapt confidently and keep compliance under control.
1. Start by mapping your client base
Not all clients will be affected by MTD for income tax at the same time. A good first step is to review your existing client list and identify who will fall into the initial rollout phase based on income thresholds and timelines.
By grouping clients by when MTD requirements apply, you can plan your workload more realistically and avoid a last-minute rush. This phased approach also allows you to tailor your messaging, ensuring that clients who need to act sooner receive timely guidance, while others are introduced to the changes gradually.
2. Take control of client communication early
Assuming clients are already aware of MTD for income tax can be risky. While some may follow HMRC updates closely, others may be completely unaware of what’s coming or how it affects them.
Proactive communication helps you stay ahead. Regular touchpoints such as emails, short guides, webinars, or client meetings can be used to explain what’s changing and why it matters. The goal isn’t to overwhelm clients with technical detail, but to clearly set expectations and reduce uncertainty.
Clear, early communication also positions your firm as a trusted adviser rather than a reactive service provider.
Also Read: How HMRC Making Tax Digital Is Transforming UK Tax Compliance
3. Keep explanations simple and practical
When introducing MTD for income tax, clarity matters. Clients want to know how the changes affect them in real terms, not just what the regulations say.
Focus your messaging on three essentials:
- What Making Tax Digital is,
- When it applies to them, and
- What actions they’ll need to take
4. Support clients with software decisions
Digital record-keeping is central to MTD for income tax, and many clients will look to their accountant for guidance on choosing suitable software. Rather than leaving clients to navigate this alone, firms can add value by recommending solutions that align with both client needs and internal processes.
When discussing software options, consider factors such as usability, affordability, integration with your existing systems, and the availability of onboarding support. Clients are far more likely to adopt digital tools successfully when they feel supported and confident using them.
5. Adapt internal workflows for quarterly reporting
Quarterly updates represent a major shift from the traditional annual tax cycle. To manage this effectively, firms may need to rethink how work is planned and delivered.
It’s crucial to ensure that clients provide their records on time each quarter. Internally, some firms may choose to introduce streamlined or “light-touch” quarterly reviews for clients who handle their own bookkeeping, while providing more hands-on support for those who need it.
Establishing consistent processes early can help prevent bottlenecks and reduce pressure during peak periods.
6. Reframe MTD as an opportunity, not just compliance
While MTD for income tax introduces more frequent reporting, it also opens the door to more meaningful client conversations. Regular data updates can provide better visibility into cash flow, profitability, and tax positions throughout the year.
By using this information proactively, accountants can offer more timely advice around planning and growth. Framing MTD as a value-added service — rather than just another regulatory burden — can strengthen client relationships and justify changes in fees linked to increased workload.
How Outsourcing Can Support Your Firm During the MTD Transition
To manage the additional workload created by Making Tax Digital, many UK accountancy firms are reassessing how routine and time-intensive work is handled. Outsourcing certain tax preparation tasks can be an effective way to protect internal capacity while maintaining consistency and accuracy.
Common areas where firms choose to outsource include:
- Bookkeeping support, ensuring client records are complete and submission-ready throughout the year
- Data processing and reconciliations, reducing the administrative burden on in-house teams
- Preparation of quarterly and annual reports, allowing internal staff to focus on review, advisory input, and client communication
What does this mean for your practice?
If you’re considering outsourcing as part of your MTD strategy, our team can help you assess the right approach for your firm.
Book a call with our team to explore how we can support your practice through the transition.