As millions 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 starting to roll out from April 2026, now is the time to prepare.

This article looks at ‘getting set’ – focusing on software and client onboarding ahead of MTD. Let’s break down how you and your firm can stay ahead of the curve.

Decide how you will represent your clients for MTD obligations

First, you will need to decide how you will represent clients for different MTD obligations. HMRC allows for flexible roles:

• Main agent: can handle everything from quarterly updates to finalising the tax return and viewing penalties
• Supporting agent: focuses on specific tasks like submitting quarterly updates but cannot submit the final return or view full tax details.

Clients can appoint one main agent and multiple supporting agents, depending on their needs.

Support clients to choose MTD compatible software that suits their needs

Selecting the right software is a crucial first step in preparing for Making Tax Digital (MTD) for Income Tax. Here are some top tips to help your clients choose the right software:

• Understand your client’s business: are they sole traders, landlords or both? Different software is available depending on the volume and complexity of your client’s transactions
• Make sure the software is MTD compatible: HMRC’s software finder tool helps identify approved options that can meet your client’s needs
• Choose the right software: you can get software that either creates digital records or links to existing records (like spreadsheets or other accounting tools) – we call this bridging software. Consider which is the best option for your clients – they may even be more suited to using more than one MTD software
• Think integration: choose software that works with your current systems and offers agent access
• Plan ahead: pick scalable solutions that can grow with your clients’ businesses.

Link your HMRC and software accounts

To operate under MTD, you must authorise your MTD software to interact with HMRC systems. Your client will need to go through the same process if they have their own compatible software. Authorisation allows the software to:

• send quarterly updates
• submit end-of-year returns
• access relevant tax data.

Sign up clients the right way

MTD for Income Tax is currently voluntary. However, you may want to get ahead of the curve and ask your client if they want to sign up:

• for 2026/2027 early – so you and your client are prepared to use the service.
• for 2025/2026 testing – if eligible your client may be able to help HMRC test and develop the service.

You can sign up your clients using HMRC’s online service. Make sure you have:

• client’s details
• confirmation of MTD-compatible software
• client consent.

Signing up your clients early helps to spread the workload and avoid last-minute issues ahead of April 2026. Once you’ve signed up your client, you won’t need to do it again once MTD is mandated.

Get familiar with MTD software

Once you’ve selected your software, it’s a good idea to familiarise yourself with its features before mandation. You may want to:

• trial using the software
• ensure everyone involved in bookkeeping and submissions is upskilled in using MTD software
• use feedback from testing to refine your approach before MTD mandation.

By following these top tips, your firm will be well-positioned to navigate the MTD transition smoothly and support your clients effectively.  You can find more support on MTD for agents at GOV.UK.