Checklists
MTD ITSA – Practice Checklist
Support your clients with a clear, practice-level checklist that keeps your entire team aligned with the latest MTD ITSA requirements and submission processes.
Preview Checklist
MTD ITSA — Practice Checklist
1. Internal Setup and Strategy
☐Review HMRC’s MTD for Income Tax guidance.
☐Create an MTD strategy plan (e.g., target dates for client migrations, pricing, service levels).
☐Train your entire team on:
- What MTD for Income Tax means.
- Who is affected.
- How quarterly updates and digital record-keeping work.
☐Nominate an MTD Champion internally (person/team leading the transition).
2. Agent Services Account (ASA) Setup
☐Create an Agent Services Account (ASA) if you do not already have one.
☐Maintain separate ASA login credentials distinct from your old HMRC agent account.
☐Link existing client authorisations (Self-Assessment) to ASA where required.
3. Software and Digital Tools Readiness
☐Select MTD ITSA-compatible software for practice use (single or multiple vendors).
☐Ensure software can:
- Connect with HMRC MTD APIs.
- Handle quarterly updates, final submissions, and multiple income sources.
☐Train staff on new software or bridging tools.
☐Arrange bridging software if you or clients use spreadsheets.
4. Client Analysis and Segmentation
☐Review your client base and segment them:
- Self-employment only clients.
- Property rental clients.
- Mixed income (self-employment + property).
☐Identify:
- Clients with qualifying income over £50,000 (mandatory from 2026).
- Clients with qualifying income over £30,000 (mandatory from 2027).
- Clients below threshold (no immediate action, future planning).
☐Record key data for each client:
- Income sources
- Gross qualifying income
- Digital record-keeping status
- Accounting method (cash/traditional)
- Current software (if any)
5. Client Communication Plan
☐Prepare standard MTD awareness communications (emails, letters, calls).
☐Create an MTD landing page on your website (optional but professional).
☐Schedule client webinars or briefings (optional but powerful).
☐Develop simple client explainer materials:
- What MTD means.
- Their new obligations.
- How your practice will support them.
☐Offer clients voluntary sign-up (early adopters).
6. Service Packages and Pricing
☐Create MTD-specific service packages (Starter, Compliance, Full Support).
☐Define pricing for:
- Initial MTD setup.
- Quarterly updates.
- Final tax return submissions.
- Additional bookkeeping if needed.
☐Offer flexible payment plans (monthly/annual billing).
7. Client Onboarding Process for MTD
☐Standardise internal steps for onboarding clients:
- Eligibility check.
- Client permission obtained.
- Client software setup and linking.
- Digital record-keeping reviewed or set up.
☐Confirm clients’ accounting period (standard or 1 April–31 March).
☐Record client authorisations digitally through ASA.
8. Quarterly and Year-End Workflow Setup
☐Define internal quarterly deadlines for receiving client data.
☐Assign quarterly filing responsibilities across your team.
☐Build standard quarterly review checklists:
- Ensure all income and expenses are captured.
- Correct any digital record errors before submission.
☐Prepare year-end workflows for:
- Making final adjustments.
- Completing final MTD tax return.
- Claiming allowances and reliefs.
9. Compliance and Risk Management
☐Keep records to show MTD compliance for each client (audit trail).
☐Monitor deadlines strictly to avoid client penalties.
☐Develop internal controls to catch common risks:
- Missing quarterly updates.
- Non-digital records.
- Incorrect categorisation of expenses.
☐Prepare to apply for client exemptions where necessary (e.g., digital exclusion).
10. Continuous Improvement and Monitoring
☐Review HMRC MTD updates regularly.
☐Update internal templates, engagement letters, and procedures as needed.
☐Gather feedback from team and clients on MTD processes.
☐Continuously refine pricing, communications, and workflows based on real-world experience.
📌 Summary: Internal Practice MTD Essentials
| Area | Must Have Before 2026 |
|---|---|
| ASA account | ✅ |
| Compatible software | ✅ |
| Client segmentation list | ✅ |
| Standard onboarding process | ✅ |
| Quarterly filing process | ✅ |
| Client pricing structure | ✅ |
| Client communication templates | ✅ |
| Team training | ✅ |
| Compliance monitoring | ✅ |
Final Tip
✅ Treat MTD ITSA like launching a new service line inside your firm. ✅ Those practices who systemise early (software, pricing, client process) will dominate the market when compulsory deadlines hit.
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What is an MTD ITSA practice checklist for accountants?
It’s a structured checklist designed to help accounting practices manage MTD ITSA compliance across all clients, ensuring consistent processes and submissions.
Why is a practice-level approach important for MTD ITSA?
With multiple clients affected, a practice-level checklist helps avoid errors, ensures consistent service and keeps your firm compliant with HMRC’s requirements.
How can a practice-level MTD ITSA checklist support my team?
It keeps your entire team aligned by defining key steps like client segmentation, software rollout, quarterly deadlines, and communication strategies.
Does FigsFlow offer a ready-made MTD ITSA practice checklist?
Yes, FigsFlow provides a downloadable practice checklist tailored for accountants, making it easy to manage MTD ITSA implementation across your entire client base.