What agents are saying
Read quotes and tips from agents who have already started using Making Tax Digital for Income Tax.
In the following video, accountant Kirsty St John shares practical advice on how to prepare your accounting or bookkeeping practice:
Making Tax Digital for Income Tax: Real Advice from Accountants in Practice
At recent events we’ve been asking agents, bookkeepers and accountants about their experience using Making Tax Digital for Income Tax so far, and what tips they’d give to others who are just starting out. Read what some of them said below.
You can also read testimonies from businesses about how Making Tax Digital and digital record keeping for VAT has worked for them. HMRC does not endorse any agents, bookkeepers or accountants.
Amanda Leddington from A.H. Financial Management Services said:
I used my software to identify who the first wave affected were and contacted that group of people. I identified who still needed to sign up to the software and who would need extra help getting ready.
I have sent clear information to clients, as and when required, so I am hopefully prepared for the first quarter. I have also personally voluntarily signed up so I knew what to expect.
Amanda’s top tip:
Communicate with your clients, be part of webinars and sign up to MTD IT yourself.
Nick Paddenburg from Brighton Tax said:
Clients seem to be responding and have been fairly receptive, some not so much but as expected. Working closely with HMRC and software vendors has been a key part of our journey and the two way support has been incredible.
It’s been amazing how HMRC have been listening to agents, bookkeepers and the public and taking the feedback onboard. It’s important to work together and not against each other
Nick’s top tip:
Keep up to date and on top of clients due to enrol, improve record keeping to ensure the process is as seamless as possible…and enrol clients early.
CML Accountancy Services Ltd top tips:
Prepare your clients early.
Get them to come into the office and use the software that they will be using, give them a demo of how it links to the app on their phone/IT equipment, and let them have a least 3 months to learn and ask questions.
All of our clients have had at least 6 month’s access to the software.
Karen Garrattley from COS Bookkeeping said:
Both me and my practice have been preparing for MTD for over 12 months. We feel prepared as much as we can be and are keen to gain the experience.
Karen’s top tip:
Look into appropriate software choices for your clients. Not one solution fits all.
Kate Guthrie from KAG Accounting Ltd said:
Sent e-mails to clients in Feb 25 who would need to start MTD in April 26. Advised clients which software I would be working with. I narrowed it down to two. I decided it would be too difficult to keep track if I had clients spread over too many platforms. I had a client who was willing to enter the pilot scheme in April 25, so I have been submitting the quarterly returns all last year, so I could learn more about the process of submissions.
I have encouraged clients to start using software early to ensure they know how it works. I have given clients support without charging them over the last year when using software to keep them calm and assist they get the input of information correct, which should make my job easier when they have to submit their first Quarterly Update in August.
Clients have told me that it gives them a clearer picture of cashflow and how their business is performing. Within the software it gives the client an idea of the tax which will be due at the end of the year.
By checking the client’s software at least quarterly, any problems are sorted and therefore has allowed me to have filed over a dozen personal tax returns by the 24th April! Usually, I would have to wait for clients to collate all their paperwork and bring it into the office.
Kate’s top tip:
Do NOT be scared of it - it is more straightforward than you realise.
Fozia Muddassir from Reddy Siddiqui LLP said:
We have reviewed our clients based on the 2024/25 tax returns and produced a report to highlight which clients will be falling into MTD in the coming 3 phases.
Based on this, for Phase 1 clients, we have reviewed the software that we think will be the right fit and notified the client of the requirements of MTD, the changes in our services, recommended software and pricing levels.
Once this was acknowledged / accepted, the revised Letter of Engagement was issued and the client signed up for MTD.
We will be doing the setting up of the client on the software in preparation for the first quarterly update in August. Internally we have trained the team on various software and signing up and setting up our quarterly workflows. Phase 2 and Phase 3 clients we have sent generic MTD information communications as the final list will depend on the relevant tax returns.
The internal team training, support from software vendors and HMRC MTD awareness team has gone well. For clients who we would not normally do digital first, or historically have been paper based, we are happy that this is pushing them to digitise and may therefore improve the efficiency of their collection process better.
Fozia’s top tips:
Identify your affected clients, so you know what that number is and how you will be managing the workload (it may be better or worse than you imagined so know your number).
Plan how the work will be handled internally - software decisions, internal training on software and workflow management.
Communicate and implement the software changes, pricing changes and what the client does/doesn’t need to do to meet the Digital requirements of MTD.
Soroban Accountants said:
I didn’t really engage with it until March 26 - I assumed it would end up being as simple as MTD for VAT actually was. I went to the Agent webinar, which was brilliant, ran a report from my tax calc software to work out how many clients needed to register from April 26 and just took it from there.
Most of my clients are on one software anyway - for those that weren’t I arranged a call about software and advantages/ disadvantages of each - and we’ve just pencilled in a review in July when we’ll do the first MTD submissions together.
Their top tips:
Don’t panic.
Communicate with your clients and chat through the practicalities.
Be prepared that you might need to do some hand holding to start with but overall, you probably will find that MTD makes life easier for both you and them (as I’ve found with MTD VAT).
Anita de Louvois from Tax and Financial Solutions Limited said:
To be honest, it is a game-changer!! My clients receive quarterly reports that highlight issues early and ensure compliance. More importantly, clients are getting a more real-time perspective on their business and can assess their potential tax liability before the year is even over.
[Bridging software] gives you the flexibility to work with different platforms while keeping your submissions and policies consistent across all your clients.
Anita’s top tips:
The most time-consuming aspect was designing my internal processes. Now that it is done, it is so straightforward, and we have been able to keep any price increases to a minimum.