MTD for Income Tax: What UK Accountants Should Be Doing Before April 2026

With the April 2026 launch of Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) approaching, UK accounting firms are entering a crucial preparation period. The shift from annual reporting to quarterly digital submissions will significantly change how practices manage client records, workflows, and compliance timelines. While the regulation itself is clear, many firms are still determining how best to adapt their processes and capacity to meet the new requirements. In this article, we outline four practical steps firms can take now to prepare for MTD for Income Tax and manage the additional workload smoothly.

Identify Clients Who Will Be Affected by MTD for Income Tax

A practical first step is to review your client base and identify those who will fall within the initial scope of MTD for Income Tax. From April 2026, the rules will apply to self-employed individuals and landlords with annual business or property income above £50,000, with the threshold expected to drop to £30,000 from April 2027.

Segmenting clients early allows firms to prioritise those who will need to transition first. It also helps assess current record-keeping practices and readiness for digital reporting, giving practices time to guide clients towards MTD-compatible systems and smoother compliance.

Review Systems and MTD-Compatible Software

MTD for Income Tax requires digital record-keeping and submissions through HMRC-recognised software. For many firms, this means reviewing whether their current systems and client workflows are fully compatible with HMRC MTD requirements.

Beyond selecting the right software, practices should also consider how information will flow between clients, bookkeeping platforms, and tax reporting tools. Establishing clear digital processes now will help reduce manual work, improve data accuracy, and ensure quarterly submissions can be managed efficiently once the rules come into effect.

Prepare for the Shift to Quarterly Reporting

One of the biggest operational changes under MTD for Income Tax is the move from annual filings to quarterly updates, followed by an end-of-period statement and final declaration. For accounting firms, this significantly increases the frequency of compliance work.

Practices may need to review internal workflows, deadlines, and team capacity to ensure quarterly reporting can be handled efficiently. Planning ahead allows firms to streamline processes, adopt automation where possible, and maintain service quality without placing additional pressure on their teams.

Educate Clients about MTD for Income Tax and Set Expectations Early

For many clients, tax reporting has traditionally been an annual exercise. MTD for Income Tax changes that dynamic, requiring more consistent record-keeping and regular data sharing throughout the year.

Accounting firms can ease the transition by communicating these changes early and clearly. Helping clients understand what will be required, from maintaining digital records to meeting quarterly deadlines, can improve cooperation and reduce last-minute issues once MTD reporting begins.

Use the Transition as an Opportunity to Strengthen Your Practice

While MTD for Income Tax introduces new compliance requirements, it also presents an opportunity for firms to refine how they operate. Moving towards more consistent digital reporting can improve data visibility, streamline workflows, and enable more proactive client support.

Practices that prepare early will be better positioned to manage quarterly compliance while maintaining service quality. With the right systems, processes, and support in place, the transition to MTD can become a catalyst for building a more efficient and future-ready firm.

Preparing Early Makes the Difference

With April 2026 approaching, firms that prepare now will be better placed to manage the operational shift MTD for Income Tax brings. Strengthening processes and accessing the right support, including specialist outsourcing partners like Befree, can help practices manage the increased compliance workload while maintaining service quality.

Meet Befree’s senior team at Stand 1574, Accountex London, taking place at Excel on 13-14 May 2026.