Making Tax Digital for Income Tax (MTD for IT) is fundamentally changing how accounting practices operate and what clients expect from their accountants.
As Making Tax Digital for Income Tax becomes mandatory from April 6th, accountants are playing a critical role in helping clients understand their new obligations, adopt digital processes and remain compliant as requirements evolve. For small businesses, sole traders and landlords, the scale of the change is significant.
While much of the focus has been on this operational change, a more subtle shift is also unfolding. As the deadline for digital reporting approaches, many clients are increasingly turning to artificial intelligence for tax guidance – seeking answers to questions they might once have discussed with peers or searched for online.
Recent Intuit QuickBooks research shows that 36% of sole traders are already using AI tools, rising to 40% among higher earners. As AI becomes a default first stop for advice, clients are arriving at conversations with their accountant with more information, but also at times, misplaced assumptions.
Far from diminishing the need for professional advice, this shift reinforces it. As clients turn to AI for answers, accountants are increasingly needed to interpret, challenge and contextualise the information clients bring to the table.
AI is entering the tax conversation
AI tools can be helpful. Many clients are using them to organise documents, summarise transactions, or sense-check figures before speaking to their accountant. As tools like ChatGPT become more closely connected to established financial platforms, as demonstrated by Intuit’s partnership with OpenAI, clients are increasingly able to get more tailored, practical outputs that reflect their real financial data, rather than generic guidance, saving time and improving preparedness.
However, challenges arise when AI-generated guidance is treated as definitive rather than directional. While these tools can support preparation and efficiency, UK tax law remains complex, nuanced and highly context dependent. Distinctions such as cash versus accrual VAT, capital allowances versus depreciation, or the relevance of a specific tax year can materially change outcomes. AI tools may not always account for these subtleties, nor for future changes that are critical to effective tax planning.
Accountants, by contrast, are trained to take a holistic view weighing up the available options within UK law with a client’s full financial position, long-term goals, business structure and regulatory obligations, before advising on the best course of action. As Aaron Patrick, Head of Accounts at Boffix said, “Where AI really helps is getting clients closer to ‘ready’. The value we add is reviewing that information, sense-checking it, and putting it into the right tax and business context.”
Why this matters more under Making Tax Digital
MTD for IT represents a significant moment of change for many tax filers. With new requirements, tighter timelines and ongoing change, it is understandable that some clients may be feeling uncertain. In that environment, the temptation to rely on quick, AI-generated answers increases.
But MTD for IT compliance is not just about submitting data digitally. It is about accuracy, consistency, and understanding what is being reported and why. An error repeated quarterly can quickly compound, whilst misinterpreting obligations, thresholds or eligibility can lead to unnecessary risk.
Against the backdrop of MTD for IT and this increasing use of AI, the role of the accountant continues to evolve. With less time spent on manual processing and more on reviewing, validating and advising, accountants are increasingly acting as auditors of AI-assisted data, strategic advisors and guides through digital transformation.
Furthermore, rather than discouraging AI use, many firms are helping clients understand best practice – what AI is useful for, where its limitations lie, and when professional judgement is essential.
This shift demands strong communication skills and a willingness to explain not just what needs to be done, but why, reinforcing the value of having a qualified professional involved.
Responsible AI has a human backstop
At Intuit, we recognise the importance of leveraging AI effectively whilst still maintaining human oversight. One of our responsible AI principles, "Enhancing Human Talent”, demonstrates this. This means we build AI tools that work hand-in-hand with real people, helping them to do their jobs better, not replace them. A human element always remains, with real-people providing the necessary oversight and accountability for AI-powered work.
This approach is already evident within QuickBooks on the Intuit platform, where our approach is simple: "AI where it counts, Human where it matters". AI is embedded to handle repetitive, time-consuming tasks and free professionals to focus on higher-value work. While the heavy lifting is automated, professionals remain firmly in control of the outcomes.
The same principle applies to how accountants are working with increasingly AI-informed clients. When used well, AI can bring real benefits, helping clients feel more prepared and informed ahead of conversations. The opportunity for accountants is to build on this foundation, outlining best practice use of AI, guiding clients through the nuances, providing context and ensuring the right level of oversight where complexity demands it.
AI can support efficiency and preparedness, but it is accountants who bring clarity, confidence and trusted guidance through ongoing change. Building on this idea, Amy Hancock, Director of Hancock & Hastings, stated “I don’t see AI as a threat. It’s a support tool. As long as there’s review and accountability, it helps both clients and accountants work more efficiently.”
The opportunity ahead
AI is not a threat to the profession. It is an opportunity to elevate it. As clients become more digitally capable, accountants can move further upstream – helping businesses plan, anticipate issues and make better decisions, rather than reacting after the event.
MTD for IT can accelerate this shift. It is pushing better data, earlier conversations and a stronger advisory relationship. In a world where information is everywhere, the real value lies in interpretation, context and trust.
For accountants, the task now is not to compete with AI, but to guide the clients who are already using it – and to ensure that confidence is matched with correctness.
Author: Katie Greet, Principal Professional Services Consultant at Intuit QuickBooks
Katie Greet is a Senior Professional Services Consultant at Intuit QuickBooks and a qualified accountant with extensive experience across a variety of industries. Katie excels in educating accountants on how to drive efficiencies using QuickBooks, drawing on her familiarity with multiple accounting platforms to provide tailored guidance. Additionally, she specialises in advising accountants on how to build plans to prepare their teams and clients for Making Tax Digital (MTD) for Income Tax
Intuit QuickBooks
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