MTD for income tax comes is being rolled out in phases from April 2026. From the start of the tax year that they join MTD income tax, sole traders and landlords with an income of over £50,000 will need to submit quarterly updates to HMRC. In short, it means that these clients keep digital records of the transactions of their business. For many, this will be a major shift, so the earlier you can prepare them, the better.

In the long term, MTD income tax should make returns easier and more accurate for clients. But building habits and learning new systems will take some time, so strong planning and clear communication will be essential for small businesses to cope with any growing pains.

“There are a total of around 900,000 coming into MTD income tax next April and 60% of those have an accountant so it will get busy,” says Rebecca Bennyworth, Chartered Accountant and leading authority on MTD. “If accountants run into problems, it’s better to get started now because lots of people leave it to the last minute.”

While time is running short for those joining from April 2026, the following countdowns can be repeated for those taxpayers joining from April 2027 and April 2028.

Communicate the changes

By now, you may have already identified which clients will fall into the 2026 threshold, so begin grouping your clients in order of “readiness.” Some will be more tech-savvy than others, so identify who will need the most handholding.

• MTD ready: already using digital software.
• Moderately ready: uses spreadsheets.
• Needs significant help: tech averse, resistant to change and still have paper records.

Don’t forget HMRC’s list of exemptions too for clients who may qualify.

Rebecca stresses that it’s not just about communicating what MTD income tax is, it's also about setting expectations around your firm’s role. “Communicate how accountants will help their clients meet those new obligations,” she says. “Whether that’s helping with bookkeeping, filling the quarters or whether they’ll just do the end of year return, make sure everyone is on the same page."

Keep your messaging concise, simple and positive. Many clients will see this as an added burden and cost, so be sure to reframe it as an opportunity.

Improved digital habits can:

• streamline business workflows;
• improve cashflow forecasting;
• make better financial decisions; and
• reduce errors and last-minute stress.

Setting this tone early will help set expectations, especially as MTD income tax will almost certainly increase their accountancy fees.

Every client affected will likely require updated engagement letters too which, as Rebecca warns, “could be quite an onerous job, so get started now.”

Discuss software options

Once clients understand the changes, they will need to adopt HMRC-approved software. Offering a shortlist will help guide them.

“Keep in mind what your clients are willing to pay” Rebecca advises. “And assess what their capabilities are too when offering options. Make it practical and tailored.” 

You could offer a list complete with:

• price guides;
• key features;
• pros and cons; and
• your professional recommendation.

There is also specialist software available for landlords so clients with multiple properties might benefit from a more tailored approach. Internally, ensure your staff are all trained and experienced on those software packages too.

For some clients, adjusting to online bookkeeping is a natural upgrade; others will need time to adjust. Visual aids like calendars and timelines can be helpful, especially for those clients that will need more support ahead of 2026.

Start educating early

Start educating your clients ahead of time, especially the ones who are likely to struggle. Introduce gentle reminders into your newsletters and create helpful guides for your website and social channels. In addition, you could offer:

• group training;
• 1-2-1 sessions;
• recorded online tutorials; or
• FAQs clients can visit at any time.

Rebecca highlights, reassuringly, “There won’t be late filing penalties for quarterly updates in the 2026/27 year so clients will have time to adjust and make the necessary changes.”

Prepare your team

This change might result in significant operational changes for your team and could stretch your resources thin, so use this time to streamline.

• Map workflows.
• Test internal capacities.
• Build clear communication channels.
• Allocate responsibilities across the team.
• Assess which clients might need more handholding.

“How you get information from your clients is the key to success here,” Rebecca notes. “With some of my clients, like pubs, we’ve had to send junior members of staff to go out and scan piles of paper because that can actually be quicker than bringing them in. Firms need to think about their resources now.”

Begin onboarding

Every client needs to be registered for MTD income tax. They can do it themselves or you can register them.

“It’s much better if you’re looking after clients that you sign them up,” Rebecca explains. “The process takes about 4 minutes per client, so any firms that have a lot of clients really need to be cracking on with that now.”

You will also want to review and reinforce their record-keeping, ensuring they understand what counts as a compliant digital record.

Final software set-ups

By this point clients should be:

• fully onboarded;
• confident with their chosen software; and
• clear on deadlines and responsibilities.

This is your chance to get everyone across the line, there will always be clients who think that MTD income tax won’t apply to them or leave it to the last minute, so it’s vital to get on the front foot.

Send a countdown email (One week)

Send a clear, detailed concise email that includes:

• a summary of what’s happening and when;
• links to tutorials; and
• a helpsheet detailing password issues, bank feed connectivity and uploading receipts.

After the deadline

It’s time to review and adjust. Identify bottlenecks and refine your processes. Both clients and advisers will take some time to settle in but the long-term benefits will likely be significant; better bookkeeping, fewer errors and stronger relationships.

As Rebecca puts it, “It can really cement the client relationship. You’ll have far more contact points than previously.”

With the right planning and clear, concise communication, you can help guide clients through smoothly and strengthen your practice too.