MTD for Income Tax: 7 Lessons Accountants Have Learned from the First Quarterly Deadline

The first quarterly deadline for Making Tax Digital (MTD) for Income Tax has given accountants and bookkeepers valuable insight into what ongoing compliance will look like in practice.

One of the biggest lessons is that MTD is not simply about submitting four quarterly updates. Firms need to adapt their wider workflows, with digital record keeping, client onboarding and regular communication becoming part of the year-round process.

Client preparation is particularly important. Practices need to establish which clients are in scope, choose appropriate software, confirm who is responsible for maintaining records and agree how information will be provided. There is also no single workflow that will suit every client, meaning practices may need different approaches depending on their circumstances and digital capabilities.

The first deadline has also highlighted the importance of software that supports the entire workflow, rather than simply connecting to HMRC. Practices should review what worked, where manual intervention was needed and whether their pricing reflects the increased frequency of client contact.

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