With around eight months to go until Making Tax Digital for Income Tax (MTD IT) becomes mandatory for many sole traders and landlords, summer is an ideal time to take stock and get ahead. While client work might ease off a little over the holidays, there’s still plenty you can be doing to prepare your practice for what’s ahead.
Here’s how to make the most of the next few months:
Check your client profiles
By now, you should have identified which clients will fall within the scope of MTD IT from April 2026 – those with gross income over £50,000 from self-employment and/or property. You should also have a clear picture of how those clients currently manage their records and which of them are already using software.
Use this time to review and refine your records. Make sure each client’s situation is logged clearly so you can prioritise your support and identify any risks.
Continue the client conversations
You’ve hopefully already started talking to affected clients about what’s changing and how MTD will impact them. Over the summer, it’s worth revisiting those conversations to confirm their understanding and reassure them that support is in place.
If clients have already started using new software, check in to see how they’re getting on. Offer extra guidance where needed to build their confidence and ensure any teething problems are resolved well before quarterly reporting begins.
Coordinate with accountants
If your clients work with an accountant, take the opportunity to clarify who will be responsible for each element of MTD compliance. Will you be submitting quarterly updates? Will the accountant handle year-end finalisation?
Clear roles and responsibilities will help avoid duplication and ensure clients receive a joined-up service.
Review your internal processes
Quarterly reporting will increase the volume and frequency of work, so it’s important your systems are set up to handle it. This includes tracking deadlines, chasing client records, and reviewing data in good time.
Take a look at how your workflow is managed, and make improvements now so you’re not scrambling when MTD goes live.
Make sure your software is ready
MTD requires functional compatible software, so it’s crucial that both you and your clients are using tools that can handle digital record-keeping and submissions. If you’re still weighing up your options, this is a good time to start trialling software and getting a feel for what works best.
Look out for ICB’s MTD Software Guide, launching in the coming months, which will provide an impartial overview of available tools and help you make the right choice for your practice.
Taking part in HMRC’s MTD IT public beta gives you early experience of the new system, with the added benefit of being able to give feedback directly to HMRC. It’s a great way to build your knowledge and confidence ahead of the mandatory deadline.
Summer might feel like a quieter time, but it’s a valuable opportunity to strengthen your MTD foundations. By checking in with clients, fine-tuning your systems, and starting to embed new tools, you’ll be in a strong position to support clients and grow your practice under the new regime.
And don’t forget – ICB’s MTD Software Guide is on the way to help you choose the right tools for you and your clients.
