Embracing Change: MTD and what it means for you
Embracing Change. Making Tax Digital (MTD) has been brewing in the background for a while now — but with the next phase of rollout on the horizon, it’s quickly becoming the main event. For accountants and bookkeepers, this isn’t just another regulatory update. It’s a shift in how tax is handled, reported, and ultimately — how you work.
But while change always brings uncertainty, it also brings opportunity. So whether you’re running a bustling practice, working solo, or part of a larger team, let’s break down what MTD actually involves, what it means for you, and how to come out ahead.
What Is MTD Really All About?
In short, Making Tax Digital is HMRC’s initiative to digitise the UK tax system, making it more effective, more efficient, and easier for taxpayers to get their tax right.
The next major milestone? MTD for Income Tax Self Assessment (ITSA), coming into effect from April 2026. This will affect self-employed individuals and landlords with income over £50,000 (and over £30,000 from 2027). It means digital record-keeping and quarterly updates to HMRC via MTD-compatible software.
For accountants and bookkeepers, this is a big deal. It doesn’t just change how clients submit their returns — it changes how you work with them, how often, and what tools you need to do it efficiently.
For Practice Owners: From Compliance Stress to Strategic Success
If you run your own accounting practice, MTD could feel like a looming mountain. More admin, training, software, and client hand-holding.
But here’s the thing — MTD is also a golden opportunity to take charge and future-proof your firm.
What to do:
Start now. Waiting until 2026 is a mistake. Get familiar with MTD software, assess your client base, and segment those who’ll be impacted first.
Automate wherever possible. Use tools that reduce manual input, especially for quarterly updates. This saves time and reduces errors.
Upskill your team. Make MTD training part of your development plans. Confident staff = confident clients.
Rethink your packages. Consider offering MTD-ready service tiers that reflect the ongoing, year-round support your clients will need.
What not to do:
Don’t assume clients will be ready or informed — they won’t be. You’ll need to lead the conversation.
Don’t try to patchwork MTD into outdated systems — invest in tools that are built for digital-first tax.
Done right, this is your chance to become a proactive advisor, not just a reactive compliance expert.
For Solo Practitioners & Small Teams: Adapt Without Burning Out
If you’re flying solo or part of a smaller team, MTD might feel like a lot of change for very little reward. More deadlines, more software, more complexity. And fewer hands on deck to deal with it.
But the shift doesn’t have to break you.
How to adapt wisely:
Lean on the right tech. Choose tools that work for you — simple, streamlined, and scalable. Don’t go for flashy; go for functional.
Create repeatable systems. Whether it’s onboarding new clients, educating them on MTD, or managing quarterly submissions, document your processes so you can reuse and refine.
Communicate clearly with clients. They don’t need every detail, but they do need to know why things are changing, and how you’ll support them.
Avoid this trap:
Don’t try to do it all yourself. Automate where you can, outsource if needed, and prioritise tasks that actually grow your business.
You don’t need to compete with bigger firms — you need to stay agile, focused, and client-first.
For Those in Larger Firms: Start Embracing Change, Don’t Resist It
You might not be making strategic decisions yourself, but MTD will still shape your day-to-day. That means new tools, new workflows, and often, more oversight.
If you’re part of a larger accounting business, your role might feel more process-driven as MTD matures. But there’s still room to lead.
Tips for navigating the shift:
Be proactive in learning. Don’t wait for a formal training session — get curious about the tools and regulations early.
Support your team. If someone’s struggling with the new processes, offer help. It reflects well on you, and makes the transition smoother.
Use MTD as a springboard. Show initiative. If you can find a smarter way to do something or spot client pain points before they happen — you’ll stand out.
The Big Picture: Why MTD Is Happening, and Why That’s a Good Thing
At its core, MTD is about modernisation. HMRC wants fewer errors, faster reporting, and better outcomes for taxpayers. That means less ambiguity, fewer surprises, and (eventually) a clearer picture of financial health — both for your clients and for the government.
Yes, the rollout has been slow and sometimes confusing. But the direction is clear: digital-first, data-driven, and consistent reporting.
Final Thoughts: Turn Compliance Into Growth by Embracing Change
MTD isn’t just a hurdle to clear — it’s a moment to evolve. Accountants and bookkeepers are the ones in the driving seat. Whether you’re helping clients understand quarterly updates or building an MTD-ready practice, this is your chance to grow in capability, confidence, and value.
Take charge early. Use tech wisely. Keep your clients close. And most importantly — don’t just comply. Thrive.
