Preparing your practice for MTD
Agents will need to take steps to prepare both their own practices and their clients for the disruption that Making Tax Digital and digitalisation will cause to the market for accounting and tax services.
Some practitioners will need to consider the direction in which they wish to take their practice. Some may be prompted to consider a merger, a sale of the practice or retirement. Others may decide to reduce or withdraw from providing tax and accounts compliance services and to instead focus on advisory and financial planning work, consultancy services or a business advice service. If a firm decides that it will continue to provide compliance services it may need to consider how these services can be automated and provided more efficiently. There may be an opportunity for firms that wish to expand to acquire other firms, blocks of fees or clients that have previously managed their own tax affairs. What is clear is that, in the medium term, there is no future for paper-based tax and accounting compliance services and that HMRC will withdraw from providing web-based online services to agents.
A number of events have been designed to help members prepare for the challenges digitalisation will pose for their practices.