Making Tax Digital for Income Tax Self-Assessment (MTD for ITSA) is set to bring major changes to how self-employed individuals and landlords manage and report their income in the UK. With the first phase of the rollout beginning in April 2026, staying ahead of these changes is crucial for accountants. Those prepared will not only ease the transition for their clients but also cement their position as trusted advisor.
Here are five essential steps that accountants should take now to ensure they’re ready for MTD for ITSA:
1. Understand the MTD for ITSA requirements
As we know, it’s been a bumpy road for MTD with the thresholds chaning a few times along the ways. The first step to success with MTD for ITSA is gaining a clear understanding of the current requirements so you can ascertain which clients will be effected. The core aspects include:
- Key deadlines: The phased rollout begins in April 2026, targeting taxpayers with self-employment or rental income of over £50,000. By 2028, those earning over £20,000 will also be included. Early preparation ensures compliance before these deadlines hit.
- Digital record keeping: MTD requires accurate digital records of income and expenditure, eliminating the need for manual paperwork. This data must be stored using HMRC-approved software.
- Quarterly reporting: Instead of annual tax returns, MTD for ITSA requires four quarterly submissions, ensuring real-time tax data for HMRC.
Stay informed by regularly checking HMRC updates to ensure you remain compliant with evolving guidance. This knowledge will form the foundation of your MTD strategy.
*Wondering where a good place stay informed on MTD is? Check out Bright’s MTD Hub.
2. Invest in the right software and tools
Implementing the correct software is critical for compliance with MTD and it’s likely that your clients’ usage of accounting software is set to increase. Not all accounting software is created equal, so choosing the right one will make a significant difference and your clients will be expecting you to advise them on what to use Consider the following:
- MTD-compliance: Ensure the software is recognised by HMRC and capable of managing digital records and quarterly submissions.
- Ease of use: Software with an intuitive interface will simplify onboarding — for both your team and your clients.
- Scalability and integration: Select tools that integrate seamlessly with your existing systems and can scale as your practice grows.
- Support reliability: When clients get hands on with software, it’s likely they have some questions regarding using the software. Picking a software vendor with reliable and responsive support team means that clients can ask their questions directly, rather than asking you.
Investing in the right tools now will set you up for long-term success. Stay tuned for Bright’s upcoming announcement about how our tools will ensure full MTD for ITSA compliance.
3. Educate and prepare your clients
The success of MTD hinges on how well your clients adhear to the new reporting requirements. Many clients may still be unaware of their obligations or unsure about the associated changes. Here’s how you can help:
- Identify your affected clients: Start by reviewing your client base to identify self-employed individuals and landlords with earnings above the initial threshold.
- Proactively communicate: Use simple and clear messaging to educate clients on what MTD means for them. Leverage tools such as email campaigns or prewritten letters to make communication easier.
- Provide resources and training: Offer workshops, webinars, or one-on-one sessions to walk clients through the changes, including how to use digital record-keeping software.
- Use Bright’s client communication pack: Save time by downloading Bright’s MTD client communication pack. It includes prewritten letters and resources designed specifically to help you inform and onboard your clients.
Helping your clients transition smoothly will not only build trust but also lighten the administrative burden for your practice.
4. Review and update internal processes
Adopting MTD isn’t just about helping clients; your internal processes need to evolve too. Here’s what you should focus on:
- Streamline workflows: Evaluate your current processes and identify inefficiencies. Automated workflows can save time and improve accuracy.
- Train your team: Ensure all staff are familiar with new tools and processes. Consider providing tailored training sessions to get everyone MTD-ready.
- Data accuracy: Build robust processes to maintain the accuracy of client data and ensure compliance. Spot-checking reports and using automation tools can significantly reduce errors.
By aligning your practice’s operations with MTD requirements, you’ll not only improve compliance but also make your team more efficient overall.
5. Create a timeline and action plan
A clear timeline and action plan are essential to ensure your practice is ready for MTD for ITSA. Here’s how to create one:
- Set milestones: Break down the transition into manageable steps, such as identifying affected clients, upgrading software, and conducting training. Assign internal deadlines to stay on track.
- Allocate responsibilities: Define roles within your team to handle specific aspects of the preparation, ensuring everyone knows what’s expected of them.
- Monitor progress: Regularly review how well you’re meeting your milestones, and adjust the plan as needed.
Having a structured plan in place will help your team stay focused and avoid last-minute scrambling as deadlines approach.
Take action today for a smoother MTD transition
Getting ahead of MTD for ITSA requirements now will save you and your clients unnecessary stress while positioning your practice as a leader in digital tax compliance. Don’t wait for future deadlines to sneak up on you.
Visit Bright’s MTD hub today for additional resources, tools, and guidance to make this transition as seamless as possible.
