Ever since talk about its introduction began, Making Tax Digital (MTD) has been perceived as just another compliance box to tick. But with over 2.75 million sole traders and landlords set to be affected by MTD for Income Tax (MTD for IT) from April 2026, it’s becoming clear that this shift is not just about meeting HMRC deadlines.
Rather, it’s about adopting digital tools for smarter workflows and rethinking how accountants can operate within a digital world.
Compliance Was Just the Starting Point for MTD
MTD was introduced with a clear aim: help prevent tax evasion by requiring businesses to keep digital records, use HMRC compatible software and submit quarterly updates. Yet, for many, this felt like just another compliance burden – a mandate rather than a meaningful change.
But as firms began transitioning to digital record-keeping and thinking seriously about the prospects of quarterly submissions, many discovered unexpected benefits. Digital tools reduced errors, cut down on the chaos of shoeboxes full of receipts and gave tax advisers and clients better insights.
With MTD for ITSA now set to become mandatory from 6 April 2026 (for landlords with qualifying income over £50,000), many sole traders and landlords are voluntarily adopting digital record keeping. Firms are reassessing their workflows, adopting digital tools and rethinking how they manage client relationships.
It’s clear that many have recognised the benefits of MTD and the fact that it’s approaching fast. Thus, they’re acting early, not just for the sake of compliance but also to build more efficient ways of working.
Digital Tools Are Changing the Day-to-Day
As firms prepare for MTD for Income Tax, digital tools are becoming central to their daily workflows. Firms are using smart software tools to cut down on repetitive admin tasks like data entry and invoice tracking. This has helped them save costs, free up time and reduce the risk of human error.
Another advantage of MTD is real– time reporting, which has proved to be a game changer for many firms. Instead of relying on historical figures, accountants and tax advisers can access up-to-date financial data. This enables them to provide timely advice and keep clients on track with tax obligations.
In addition to this, firms can use this data to gain deeper insights into clients’ income, expenses and cashflow. This helps identify patterns and trends (good and bad) which would otherwise have gone unnoticed, allowing everyone involved to make informed financial changes.
It’s undeniable. The digital shift is enabling proactive support and helping clients make smarter decisions throughout the tax year.
How Do Accountants Fit into the MTD Picture
This digitalisation is changing what clients expect from their accountants. Accountants, today, must be strategic partners rather than just someone who files return on clients’ behalf. People seek strategic input and forward-looking advice to help them make timely decisions.
To meet these expectations, accountants need to step into strategic roles. But that’s only possible if they automate everything that’s routine and administrative.
Admin tasks like drafting proposals, engagement letters and pricing quotations should not be eating into your valuable time. That’s where FigsFlow comes in.
With FigsFlow, you can draft professional proposal and regulatory– compliant engagement letters within seconds. Plus, it offers advanced pricing calculator that helps you price your services accurately.
Remember, automation can take care of back-office work and all you need to do is deliver high value services such as forecasting, business planning and proactive advice.
Conclusion
MTD is not just a compliance deadline, it’s a defining moment for the accounting profession.
Firms that perceive MTD as a strategic shift rather than an administrative burden are already experiencing better efficiency and stronger client relationships. They can streamline workflows and deliver more meaningful value to clients.
Remember, the sooner you accept MTD and embrace the upside potential of digitalisation, the better positioned you will be.
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