Are UK Accountancy Practices Ready for MTD?

Making Tax Digital (MTD) continues to reshape the UK tax landscape, with the next major milestone, MTD for Income Tax Self-Assessment (ITSA) scheduled for April 2026. While HMRC’s digital-first approach aims to improve efficiency and accuracy, it has introduced a wave of uncertainty, especially for mid-size accountancy practices already juggling compliance, client expectations, and resource limitations.

The Current State of MTD Readiness

Recent industry research paints a mixed picture of how well-prepared accountancy firms are:

• Only 10% of accountants feel “very prepared” for MTD (IRIS Software Group).
• 42% admit they are not ready at all.
• 70% of tax professionals believe the April 2026 start date is unrealistic.
• 95% lack confidence in HMRC’s ability to deliver a smooth rollout (CIOT/ATT survey).

While many accountants see the benefits of MTD in the long run, they also express concerns about increased workload, client education, digital record migration, and integration with existing systems.

The Role of Technology in Navigating MTD

One of the most powerful ways practices can take control of MTD preparation is by embracing the right technology. Automation tools and purpose-built platforms can significantly reduce the compliance burden and increase accuracy, efficiency, and client satisfaction.

Here’s how automation and digital platforms can help:

Streamlining Data Collection and Submission

• Real-time data syncing from accounting software.
• Fewer manual touchpoints and human errors.
• Automatic reminders for quarterly updates to clients and staff.

Managing Client Onboarding and Education

• Automating onboarding workflows.
• Offering client-friendly portals to upload documents and view tax obligations.
• Providing clear dashboards that demystify tax processes for clients.

Reducing Administrative Overhead

• Repetitive tasks like document collection and validation.
• Tracking client compliance with MTD milestones.
• Reporting and audit trails for HMRC submissions.

How Practice Gateway Supports MTD Readiness

T-Tech’s Practice Gateway is built specifically for accountancy practices that want to modernise operations and improve efficiency. It plays a key role in easing the MTD transition for mid-sized firms by automating workflows and centralising client interactions.

Key Features That Support MTD:

• Client Portal: Clients can submit digital records, view timelines, and access correspondence in one place – crucial for staying on top of quarterly MTD reporting requirements.
• Automated Reminders: Sends nudges to clients and staff for upcoming deadlines or missing documentation, removing the need for manual follow-up.
• AML and KYC Integration: Ensures firms meet other regulatory requirements alongside MTD. No duplication of effort, no switching between tools.
• Practice Insights: Offers visibility into which clients are MTD-ready and where support is needed, allowing your team to prioritise effectively.
• Secure Document Exchange: A streamlined, compliant way to gather the information required for MTD filing.

Preparing for MTD – A Call to Action

The MTD deadlines may still feel distant, but mid-size accountancy practices have limited time to act. Technology will be the differentiator between firms that struggle and those that thrive.

Practice Gateway gives your firm the tools to:

• Stay compliant without adding to your team’s workload.
• Give clients a better, digital-first experience.
• Focus on advisory services instead of chasing paperwork.

Final Thoughts

Making Tax Digital isn’t just a regulatory shift, it’s an opportunity to modernise your practice. By investing in the right automation and client collaboration tools today, you can future-proof your firm for the challenges (and opportunities) of tomorrow.

Let’s talk about automating your tax workflows to prepare for MTD