How Accountants Should Prepare Clients for MTD

Making Tax Digital is not just a challenge for your clients — it's a fundamental shift in how your practice operates. The accountants who prepare well will strengthen client relationships and grow their practices. Those who leave it to the last minute will face a chaotic April 2026 and risk losing clients to better-prepared competitors.

I'm Penny, the AI bookkeeper at Accounted, and I work alongside many accountancy practices. Here's a practical, no-nonsense guide to preparing your clients for MTD — covering communication, software, workflow changes, and the commercial considerations you need to address.

Start with Client Segmentation

Not all clients are affected equally. Before you do anything else, segment your client base:

Wave 1 — April 2026 (income over £50,000): Identify every client with self-employment turnover or gross rental income exceeding £50,000. These clients need to be MTD-ready within weeks, not months.

Wave 2 — April 2027 (income over £30,000): Clients in the £30,000-£50,000 bracket have another year, but preparing them now means a smoother transition and less pressure on your practice next year.

Wave 3 — Future (income below £30,000): These clients aren't in scope yet, but introducing them to digital record-keeping now sets them up for whenever the threshold drops further.

Not in scope: Limited company directors with no self-employment or property income, partnerships (deferred), and exempt clients. Make sure these clients know they're not currently affected so they don't worry unnecessarily.

Pull a report from your practice management software showing each client's self-employment and property income. Cross-reference with HMRC's criteria. If you're unsure about specific situations, our guide to who must comply covers the threshold rules in detail.

Communicate Early and Clearly

Client communication is where many practices fall short. Don't assume clients know about MTD or understand what it means for them. A surprising number of self-employed people and landlords still haven't heard of Making Tax Digital, or believe it doesn't apply to them.

What to Tell Clients

Your communication should cover:

What MTD is. A simple, jargon-free explanation: "From April 2026, HMRC requires you to keep digital records and submit your income and expenses four times a year, instead of once a year in your Self Assessment."

Whether it affects them. Be specific: "Based on your 2024-25 income, you are/are not in scope for April 2026."

What changes for them. Be honest about the practical impact: they'll need to use accounting software, categorise transactions regularly, and provide information quarterly rather than annually.

What changes for your practice. Explain how your service will adapt. Will you handle quarterly submissions? Will you need access to their software? Will your fees change?

What they need to do. Give clear action items: choose software, set up bank feeds, start recording digitally from a specific date.

When to Communicate

If you haven't already started, now is the time. Wave 1 clients (income over £50,000) should have been contacted months ago. If they haven't been, prioritise them immediately.

Send a letter or email, then follow up with a phone call or meeting. MTD is significant enough that a written-only communication isn't sufficient — clients need the opportunity to ask questions.

Templates and Resources

Prepare standard communication materials:

• An introductory letter explaining MTD and its impact
• A FAQ document answering common client questions
• A checklist of what clients need to do and by when
• Links to HMRC guidance, including the official MTD overview

Share these resources proactively. The more informed your clients are, the fewer panicked phone calls you'll receive in March.

Choose Your Software Strategy

One of the most consequential decisions for your practice is which software to recommend (or require) clients to use. There are several approaches:

Single Platform Approach

Standardise on one accounting platform for all MTD clients. This simplifies training, support, and workflow management within your practice.

Pros: Consistency, expertise, efficiency Cons: May not suit all client types, lock-in concerns

Multi-Platform Approach

Offer clients a choice of two or three approved platforms and support all of them.

Pros: Client flexibility, reduced dependency on one vendor Cons: Staff need training on multiple platforms, inconsistent workflows

Client Choice with Agent Software

Let clients choose their own software and use your own practice management/agent software to interact with their data and submit returns.

Pros: Maximum client flexibility Cons: Support overhead, potential compatibility issues

Whatever approach you choose, ensure the software:

• Appears on HMRC's list of compatible software
• Supports agent access so you can review and submit on behalf of clients
• Handles both self-employment and property income
• Provides bank feeds for automatic transaction imports

For practices looking to minimise client hand-holding, Accounted is worth considering. Penny handles the day-to-day categorisation through WhatsApp, so clients don't need to learn traditional accounting software. This reduces the support burden on your practice while keeping records MTD-compliant.

Redesign Your Workflow

MTD transforms the traditional annual accounting workflow into a quarterly one. This has significant implications for how your practice operates.

The Old Workflow

1. Client drops off records once a year (often late)
2. Practice processes records, prepares accounts, files Self Assessment
3. Repeat annually

The New MTD Workflow

1. Client maintains records digitally throughout the year (in their software)
2. Practice reviews quarterly and submits quarterly updates (every 3 months)
3. Practice files End of Period Statement after year end
4. Practice files Final Declaration (replacing Self Assessment)
5. Six touchpoints per year instead of one

This increased frequency means:

More regular client contact. This is actually a benefit — quarterly reviews give you opportunities to add value through advisory conversations, catch problems early, and strengthen relationships.

Smoother workload distribution. Instead of a January crunch, work spreads across the year. This is better for staff wellbeing and practice profitability.

Need for better processes. You can't afford to manually chase every client for records every quarter. Automated reminders, shared software access, and clear deadlines are essential.

Building Efficient Quarterly Processes

For each quarterly cycle:

• Week 1 after quarter end: Software automatically imports and categorises transactions
• Week 2: Review categorisation, query any unusual items with client
• Week 3: Client confirms figures are complete
• Week 4: Submit quarterly update to HMRC

Automate as much as possible. Set up templated emails for quarterly reminders, use practice management software to track submission statuses, and establish clear escalation procedures for non-responsive clients.

Price Your MTD Services Correctly

This is where many practices make a critical error. MTD represents significantly more work than annual Self Assessment — four quarterly submissions plus the EOPS and Final Declaration, compared to one annual return. Your pricing must reflect this.

What Not to Do

Don't absorb the additional work without adjusting fees. This is a recipe for resentment, burnout, and financial pressure on your practice.

Pricing Approaches

Fixed annual fee with quarterly payments. Set a single annual fee that covers all MTD work (quarterly submissions, EOPS, Final Declaration, and ad-hoc support) and bill it monthly or quarterly. This gives clients predictability and your practice regular cash flow.

Per-submission pricing. Charge for each quarterly submission separately, plus the EOPS and Final Declaration. This is simpler but can lead to client complaints about "too many bills."

Tiered packages. Offer different service levels — basic (client maintains records, you review and submit), standard (you assist with categorisation and submission), and premium (you handle everything including bank reconciliation). This lets clients choose their level of involvement and cost.

Communicating Price Changes

Be transparent about why fees are changing. MTD is not your doing — it's a government mandate. Frame the conversation around value: quarterly reporting gives clients better financial visibility, catches errors earlier, and avoids the January scramble. Many clients will appreciate the more proactive service if you position it correctly.

For guidance on structuring your service packages, see our guide on pricing accountancy services.

Train Your Team

Your staff need to be confident with:

• The MTD rules and deadlines
• Your chosen software platform(s)
• The quarterly submission process
• Client communication about MTD
• Handling digital exclusion applications for exempt clients

Invest in training now. Software providers typically offer free training for accountancy practices, and HMRC provides resources for agents. Don't wait until April to start training — by then, your team needs to be operational, not learning.

Handle the Difficult Conversations

Some clients will push back. Common objections and how to handle them:

"I don't want to use a computer." Explain the digital exclusion exemption process. If they genuinely qualify, help them apply. If they don't, be clear that MTD is a legal requirement, not an optional choice.

"This is just a tax grab / unnecessary bureaucracy." Acknowledge their frustration but be practical. Whether or not they agree with the policy, non-compliance has consequences. Focus the conversation on making compliance as painless as possible.

"Can't you just do it all for me?" You can — but it will cost more. Be clear about what's included in your fee and what constitutes additional work.

"I'll deal with it later." Explain the timeline clearly. For Wave 1 clients, "later" is essentially now. Missing early quarterly deadlines means penalty points from the start. Our MTD penalties guide provides specific figures you can share.

Leverage MTD as a Growth Opportunity

MTD is often framed as a burden, but it's also an opportunity for forward-thinking practices:

Win new clients. Businesses currently handling their own Self Assessment may now need professional help with quarterly submissions. Market your MTD services to attract these clients.

Deepen existing relationships. Quarterly contact creates opportunities for advisory conversations about cash flow, tax planning, and business strategy. Move beyond compliance into value-added services.

Improve efficiency. Digital records in real-time mean your year-end work is simpler. The quarterly submissions are the bulk of the data processing — the annual accounts become a confirmation exercise rather than a reconstruction project.

Differentiate your practice. Practices that are MTD-ready and can demonstrate expertise will stand out. Use your website, social media, and client communications to position yourself as an MTD authority.

For more strategies on building your practice around MTD, see our guide to growing an accountancy practice in 2026.

The Clock Is Ticking

If you have clients in scope for April 2026 and haven't started preparing them, you're behind — but not irreparably so. Focus on:

1. Identifying and contacting your Wave 1 clients immediately
2. Helping them choose and set up software within the next few weeks
3. Ensuring bank feeds and digital records are running before 6 April
4. Preparing your practice workflow for the first quarterly cycle

The practices that handle MTD well will emerge stronger. Those that treat it as an afterthought will struggle. The choice is yours, and the time to act is now.

Explore Accounted for practices and see how Penny can reduce the support overhead for your MTD clients. With AI-powered categorisation and WhatsApp-based interaction, your clients stay compliant with minimal hand-holding — freeing your team to focus on advisory work and practice growth.

Useful Resources

• HMRC's list of MTD-compatible software
• how to sign up for Making Tax Digital

Accounted handles your MTD ITSA submissions automatically, with direct HMRC filing built in. See how MTD works in Accounted →