Making Tax Digital (MTD) is finally on the horizon, and for many accountants, the question is no longer if it will happen — but how to prepare for it.
In our recent webinar, Jonathan Stobart, Brand Manager, and James Riley, Head of Product for Bright, explored how practices can prepare their clients, set fair pricing structures, and use Bright’s software to streamline MTD workflows.
Here are the key takeaways from the session.
Understanding Where Accountants Stand on MTD
MTD has been a long journey, filled with delays and uncertainty. But as James put it, “April — it’s coming now.”
To better understand how prepared firms are, Bright recently surveyed accountants about their readiness for MTD, ECCTA, and other upcoming legislation.
The findings were revealing:
- 8% said their clients were very knowledgeable about MTD.
- 48% described their clients as somewhat aware.
- 26% said their clients’ understanding was poor.
- 17% said their clients were unaware that MTD was even happening.
While it’s understandable given all the regulatory noise, this lack of awareness poses a real challenge for accountants, particularly when it comes to pricing and communicating new services.
Should You Charge for MTD Services?
A few years ago, many accountants were unsure whether MTD warranted a separate charge. After all, clients were still receiving “compliance” work. But as Jonathan pointed out, that’s no longer the case:
“Clients aren’t just getting the same service, they’re getting more. And accountants are delivering more value than ever before.”
The conversation has now shifted from “Should we charge for MTD?” to “How should we charge for MTD?”
According to a recent survey, 53% of accountants plan to increase their fees in response to MTD. The reasoning is clear: MTD means more frequent client touchpoints, more data review, and greater year-round engagement. It’s not just about compliance anymore — it’s about ongoing support and insight.
Step One: Segment and Communicate with Clients
For most firms, the first priority is clear — identify which clients will be impacted by MTD and start communicating early.
James explained that within BrightManager, you can easily segment clients based on income thresholds, qualifying years, and filing requirements. Once that’s done, the bulk email tools lets you send tailored communications to each client group.
Bright also provides an MTD Resource Hub featuring ready-to-use email templates and educational materials. James recommends phasing client communication — starting with a warm-up email, followed by monthly updates leading up to the rollout.
“Think about your clients’ awareness. Use this time to educate, build understanding, and prepare them for what’s coming, including the pricing conversation.”
Step Two: Setting Up Your Pricing Strategy
Once clients are informed, the next step is internal: defining your pricing model.
This is where BrightPropose can help. The platform allows firms to create a repeatable, transparent pricing matrix for MTD services, reducing ambiguity and ensuring consistency across clients.
You can set pricing variables such as:
- Number of income streams
- Record-keeping quality
- Number of properties (for landlords)
- Number of transactions
- Bookkeeping or training needs
For example, you might have a base price for quarterly filings, then add incremental fees for multiple income sources or higher transaction volumes.
“This removes guesswork from quoting,” Jonathan said. “Instead of relying on gut feeling, you can set objective pricing that’s fair, scalable, and transparent.”
And for firms experimenting with AI-powered pricing, grounding those models in a clear pricing matrix ensures consistency and accuracy.
Step Three: Creating and Sending Proposals
Once your pricing is in place, you can use BrightPropose to generate professional, branded proposals that include:
- MTD service details
- Calculated fees
- Letter of engagement
- e-signature functionality
Accepted proposals automatically sync with BrightManager, triggering workflows, task creation, and automation for quarterly and final declaration submissions.
That means once a client signs off, your practice management system is instantly ready to handle the associated MTD work — with all the deadlines, templates, and automations already in place.
What’s Coming Next from Bright
Bright continues to build tools to help practices transition smoothly into MTD.
James revealed that new BrightManager features — including MTD quarterly and final declaration services, bulk client updates, and improved automation — are being rolled out throughout November.
He also hinted at more integrations on the way:
“We’re working to deliver even more value-add functionality. As we approach the end of the year, we’ll have something tangible to show you.”
Final Thoughts
MTD represents both a challenge and an opportunity. For accountants, it’s a chance to strengthen client relationships, modernise workflows, and demonstrate ongoing value.
By segmenting clients early, communicating clearly, and establishing transparent pricing structures, firms can navigate the transition with confidence — and profitability.
Bright’s tools, from BrightManager to BrightPropose, are designed to make that process seamless.
“As MTD rolls out,” Jonathan concluded, “communication, consistency, and clarity will be key. The firms that get those three things right will be the ones that thrive.”
Want to learn more?
Visit our MTD Hub to access templates, guides, and resources to help your firm prepare for MTD.
