In partnership with HMRC and following two earlier articles, this is the third of a series of tips on preparing for MTD.

As thousands of landlords and sole traders get ready to transition to Making Tax Digital (MTD) for Income Tax, accountants and bookkeepers play a crucial role in helping clients adapt.

With mandatory changes rolling out from April 2026, now is the time to prepare.

This three-part series will help you get ready for these changes, providing top tips on:

• getting ready – laying the groundwork
• getting set – tools and sign-up
• go live – managing MTD in practice.

In this article we are focusing on ‘go live’ – looking at best practice for managing MTD once mandated and how you can best prepare now.

1. What to capture in your digital records

To meet requirements when creating digital records, you and your clients should:

Focus on relevant income sources

• only self-employment and property income/expenses need digital records
• as a minimum include amount, date and category for each transaction.

Separate records for each business

For each source of self-employment income you have, you will need to: 

• create separate digital records 
• send separate quarterly updates
• UK and foreign property businesses must also be recorded separately. Your share of any jointly let properties will form part of either your UK or foreign property business.

Full guidance on creating digital records can be found on GOV.UK.

2. Smart record-keeping and automation: key tips for agents

To stay compliant and efficient under Making Tax Digital (MTD) for Income Tax, you should focus on two core practices:

Keep digital records in real time

• Encourage clients to record income and expenses as they happen.
• Regular reviews help maintain accuracy.

Make the most of software features

Consider using platforms that automate routine tasks like categorising transactions or generating reports. Built-in features can save time, reduce manual input and support better decision-making.

3. Stay on top of deadlines to avoid penalties

It’s important you stick to the deadlines, which by default align with the tax year:

• 6 April-5 July, due 7 August
• 6 July-5 October, due 7 November
• 6 October-5 January, due 7 February
• 6 January-5 April, due 7 May.

After submitting a quarterly update, the software will show an estimated and forecasted tax liability to help your clients plan ahead.

Your client’s annual tax return must be submitted by 31 January following the end of the tax year. You’ll need to use MTD software to complete this tax return.

If you miss these deadlines, you may get a late submission penalty. These penalties do not apply when you’re volunteering or testing Making Tax Digital for Income Tax, but they will be applicable when you are required to use MTD.

4. Keep your clients records up to date

After signing up for MTD for ITSA, you’ll need to update HMRC on any changes to your clients’ circumstances via your Agent Service Account:

Add or cease income sources

• Report new or ceased self-employment or property income.
• Ensure software reflects these changes to maintain accurate quarterly updates.

Adjust payments online

• Payments on account are advance payments towards your client’s tax bill.
• If they know their tax bill will be lower than last year, their payments can be adjusted to reflect this.

Amending a return

• Contact HMRC support to amend returns submitted via MTD-compatible software.
• If you submitted a paper or online tax return for a previous year, follow the guidance to make changes for self-assessment tax returns.

A full list of changes of circumstances you need to tell HMRC about is available on GOV.UK.

5. Year-end in MTD: What you’ll need to do differently

You’ll need to complete and submit your client’s tax return using MTD compatible software. Make sure to:

Add all sources of income

• HMRC may pre-fill some data, so make sure to check and confirm accuracy before submission.
• You need to add other income sources into your client’s tax return if they’ve not been added during the tax year and they need to be declared (eg savings and dividends).

Submitting your client’s tax return:

• You can only submit if you are your client’s main agent.
• If your client or a supporting agent has submitted quarterly updates or added income details, you can view these summaries in your software, but you cannot access their full digital records.
• To make corrections or view detailed entries, you’ll need to coordinate directly with the client or their supporting agent.

Review and confirm:

• Before you submit your tax return, check that the information added by you and HMRC is correct.

Full guidance on submitting your client’s tax return can be found on GOV.UK.

Further support

You can find more support on MTD for agents at GOV.UK and register your interest for tailored agent support via a simple form.

Agents will still be the first point of contact in most cases with client questions; be ready for these by understanding the information your clients may be seeing as part of HMRC’s new MTD campaign and aligning your messaging with the materials in the HMRC resource hub. 

Further resources

Visit ACCA's Making tax digital hub

Read MTD for Income Tax: PCRT guidance

Download ACCA's Engagement letters – MTD Schedule of Services

Read our In Practice articles Getting ready – laying the groundwork and Getting set – tools and sign-up