Making Tax Digital: From Deadline Anxiety to Everyday Opportunity

By April 2026, Making Tax Digital (MTD) for Income Tax Self-Assessment will become mandatory for self-employed individuals and landlords with income over £50,000. While the headlines focus on compliance, the real story is about how practices adapt—and whether they treat MTD as a burden or a business opportunity.

Our recent survey found that 85% of firms are still in the planning phase and 62% say clients are unprepared for quarterly submissions. At the same time, 76% are struggling with pricing, and over 65% say clients don’t yet see the value in MTD services. The gap between awareness and implementation is clear.

But there’s another way to look at it. With a proactive approach, MTD can move firms away from the “once-a-year tax return” model and towards predictable, recurring revenue streams supported by quarterly client touchpoints.

Why Delay is the Real Risk

Many practitioners are waiting for clarity—or secretly hoping for another delay. But the bigger risk is inaction. Firms that postpone until 2026 will face bottlenecks, staff burnout, and rushed onboarding. Worse still, they may lose clients to competitors already positioning themselves as MTD-ready specialists.

Instead, early adopters can:

Spread client onboarding over 12–18 months.

Pilot and refine pricing before rolling it out widely.

Differentiate their practice as a trusted advisor, not a reactive filer.

The question is no longer if MTD will arrive, but how prepared your firm will be when it does.

Practical Tips for Getting Ready

1. Segment your clients now
Not all clients need the same level of support. Create categories based on digital confidence, transaction volume, and advisory potential. This makes it easier to design packages that feel relevant, not “one-size-fits-all.”

2. Define your delivery model
Decide early whether MTD work will be led by bookkeepers, accountants, or a collaborative approach. Clear role allocation avoids duplication, confusion, and missed deadlines.

3. Standardise your tech stack
Don’t wait until 2026 to choose software. Test a small set of HMRC-compatible tools now and train your team deeply. Automation features—bank feeds, categorisation rules, integrated dashboards—are critical for scalability.

4. Package and price with confidence
Instead of quoting reactively, create tiered packages: for example, compliance-only, full service, and advisory. Transparent pricing builds trust and reduces disputes. Remember: clients are more likely to pay for peace of mind than for “admin.”

5. Communicate value clearly
Clients often see MTD as “red tape.” Reframe the conversation around benefits: fewer errors, better cashflow visibility, and more timely tax planning. Short one-page summaries or checklists can make the value tangible.

Final Thought

MTD is more than a compliance hurdle—it’s a catalyst for change. Practices that act now can transform workflows, deepen client relationships, and secure recurring income models that last well beyond 2026.

The firms who succeed won’t be the ones waiting for deadlines—they’ll be the ones leading clients confidently through them.

Meet the CPDStore team on stand C18 at Accountex Summit Manchester, taking place at Manchester Central on 23 September 2025.  

For further information, please visit www.accountexmanchester.com.

Book your free ticket here.

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