5 ways your practice can prepare for MTD

While the upcoming MTD for Income Tax (MTDfIT) mandation (currently scheduled for April 2026) may be a worry, there’s plenty of time to get your clients and your practice ready for the changes. When properly prepared for, MTD offers several opportunities for accountants.

1.     Choose a compliant software provider for MTD

Choosing an MTD-compliant software provider is key to achieving a smooth transition.

When assessing software options, keep several factors in mind. First, ensure the software integrates seamlessly with your current systems to support functionality. It should also be intuitive and easy to use, helping streamline the tax recording and submission process.

Seek providers that offer extensive support and training to ease your team’s adjustment to the new system.

Security is another critical factor; robust security systems are essential for compliance, data protection, and maintaining your firm’s reputation.

Finally, consider the software’s cost, ensuring it is scalable, offers good value, and fits within your budget.

2.     Assess your clients for ITSA

Identify which clients will need to comply with MTDfIT, focusing on those whose income sources and thresholds meet the criteria—currently, landlords or sole traders with net incomes over £50,000.

Evaluate your clients’ existing record-keeping practices and assess their readiness to shift to digital systems. Clear communication is vital—keep clients informed about the MTDfIT requirements, deadlines, and how these changes will affect them.

Consider creating a personalised transition plans for each client, which could include providing training or assistance with setting up digital records.

3.     Train your team to keep them up to date

Begin by setting up comprehensive training sessions that cover the software’s features, data entry, submission workflows, and troubleshooting.

Plan for ongoing training to keep the team up-to-date on any software updates or changes in MTD regulations. Hands-on practice sessions are beneficial for building confidence and skill among team members.

Inviting experts from the software provider or industry specialists can provide valuable insights and help address any questions your team may have.

4.     Sign your practice up for an Agent Services Account (ASA)

An Agent Services Account (ASA) enables you to manage your clients’ tax affairs under MTD.

To create an ASA, register through the HMRC website, supplying the required details about your practice. Once registered, you can link your practice to your clients’ tax accounts, allowing you to handle their MTD submissions seamlessly.

Take the time to familiarise yourself with the ASA’s features, such as managing authorisations and accessing client information, so you can efficiently oversee your clients’ tax matters.

5.     Prepare your practice management strategy

Accountability within your team is important for effective practice management and ongoing MTD compliance.

Start by clearly defining and assigning specific roles and responsibilities for MTD compliance and software management. This clarity will help each team member understand their role.

Schedule regular check-ins to review progress, tackle any challenges, and ensure that everyone stays aligned with goals. Establish performance metrics to measure the effectiveness of your MTD processes, allowing you to pinpoint areas for improvement.

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