Bright’s advice to accountants for Making Tax Digital

In Bright’s latest video, the second in a three-part series, Bright’s team examines what useful guidance they would offer to practices getting ready for the upcoming Making Tax Digital for Income Tax (MTD) chapter.

The first step is to understand MTD

Bright’s practice integration lead, Paul Onions, described the extent of the change thus far.

“So, Making Tax Digital really has transformed the tax landscape. When it first started out, about 10 years ago, there was a massive impetus from the whole industry around driving people to use bookkeeping tools.” Paul said.

This push has led to the current state of affairs, where regular filings, digital record-keeping, and the demand for increased openness are all playing a bigger role in the tax system.

Having tools that can manage the complexity without overwhelming the firm and assisting clients in understanding what MTD truly means to them are now the main tasks for accountants.

“The key bit of advice I’d give to any accountant today is to make sure that they fully understand what MTD means, and which of their clients will fall into the MTD remit each year as it rolls out,” Onions stated.

“Then communicate very clearly to their clients the impact that it will have on them, what it means in terms of the additional filings, and therefore the extra work that they will have to do.”

Supporting clients through MTD changes

Making the shift to MTD isn’t just about adopting new technology — it also requires a change in how accountants and clients interact. Ben Bishop, Chief Product and Technology Officer at Bright, explains that MTD has altered the dynamic between firms and their clients.

He comments, “MTD started with VAT, that’s been incorporated reasonably well, but at the beginning of the process, there were quite a lot of new things that needed to be thought about in terms of an accountant-client engagement”

For accounting practices, this means providing more than technical support — it’s about stepping into a consultative role.

Bishop adds, “So essentially, it’s an additional line of advice that they’re going to need to provide to their client. The accountants themselves need to understand the detail, the admin detail and the electronic filing detail, and the legislation onus that comes with MTD, and help their clients navigate that process.”

Cutting down the administrative load

Many firms may find the increased administrative work challenging. Bishop notes, “The admin burden is going to be in terms of traversing the client expectation, changing the way they work, and making sure that the data that’s required under MTD is delivered in time,”

The solution? Automation.

“Our advice is to be thinking about automation at every point in the process, whether that’s AI, whether that’s traditional automation, or whether that’s just running a series of rules in Outlook. Just think about automation, automation, automation,” he advises.

With the right combination of smart software and streamlined processes, managing MTD requirements becomes a practical part of daily operations, rather than a burden.

Early engagement and communication are key

MTD also opens the door for more frequent and meaningful interactions with clients. James Reilly, Head of Product at Bright, highlights the opportunity for building stronger relationships:

“Client behaviour is incredibly hard to change, and early communication and early education for clients is absolutely critical.”

Leveraging the right software can make this easier. “In gearing up for MTD, accountants should really be looking to leverage the software that they’re using and available on the market to ease the administrative burden of educating their clients,” Reilly continued.

Bright supporting you on your MTD Journey

MTD is now a permanent part of the accounting landscape. Successful firms will be those that combine legislative knowledge with effective systems, processes, and technology partners.

Bishop concludes, “Making sure that you have systems and processes that support MTD today, but can also signpost and cater for those future requirements for you as a practice to understand that burden and have a software supplier that is equally on track and understanding of MTD is an important consideration”.

At Bright, we’re committed to helping you navigate MTD efficiently. Our dedicated MTD hub offers practical guides, step-by-step resources, and tools to help you support clients and stay ahead of upcoming changes. See why Bright is the partner you need for a smooth MTD journey.

This content may have been developed with the assistance of AI tools. Content is reviewed by a member of the Bright team before publication. Guidance on legislation can be obtained from your industry body.