How are accountants in the UK preparing for MTD for Income Tax?

• What UK accountants really think about MTD for Income Tax
• Key challenges include finding the right software and non-compliance
• MTD for Income Tax is a turning point for UK accountants
• What you’ll learn from our MTD for Income Tax report

We set out to find out how practices across the country are preparing for MTD for Income Tax in our new report. We surveyed 100 accountants to find out how they’re getting ready for the change, whether they think it’s a positive or negative, and how they’re going to overcome key challenges.

What UK accountants really think about MTD for Income Tax

So, what do accountants really think about HMRC’s scheme? 

68% believe that it’s a positive for their business, while 18% were neutral, 9% unsure, and 5% saying it’s a negative.

When it comes to clients, 58% of accountants think it’s positive for clients, 21% are neutral, and 13% unsure. 8% believe it’s a negative for clients, higher than negative sentiment towards the impact on their businesses.

“For businesses it encourages regular bookkeeping and can improve cashflow, and for clients it offers more transparency,” says one junior accountant based in the West Midlands.

Perceived benefits include improved efficiency (66%) and easier financial forecasting (57%), as accountants look forward to smoother workflows under MTD. Read the full report to learn what other benefits will come with it.

Key challenges include finding the right software and non-compliance

However, our data shows that there are concerns around finding the right software (50%), non-compliance, penalties, or fines (42%), and clients being unhappy with the change (37%) among others.

 “I believe MTD for Income Tax will bring about more streamlined processes,” says one accountant, a senior leader based in London.  “[This will make it] easier for both me and my clients to stay on top of tax obligations. Some positives are better accuracy in reporting and fewer errors in record keeping, but on the downside, there might be some initial challenges in adapting to the new system especially for clients who aren’t tech savvy.” 

As this accountant notes, adapting to new systems is particularly challenging for those clients who aren’t ‘tech savvy’. Ideally, everyone will use software to submit their data, but there will be some exceptions—whether it’s because they’re exempt, or the client is resistant to using software.

For accountants, communication with these clients is key. You’ll need to show them that this is really happening, and they need to stay on top of their reporting, but you can handle the digital submissions for them. This way, you build trust. Download the report to discover how accountants are choosing to handle non-digitalised clients.

MTD for Income Tax is a turning point for UK accountants

While there may be an initial set-up period on the horizon, it seems that professionals are excited for this new beginning of efficiencies through digitalisation.

Concerns about this transitionary period highlight the importance of joining the MTD for Income Tax pilot ahead of the scheme becoming mandatory in April 2026. Accountants across the UK seem to agree there will be a transitionary phase, but having the right systems and software in place will make the change smoother and worth it in the end.

What you’ll learn from our MTD for Income Tax report

Read the full report to benchmark your practice against your peers. Learn how well MTD is understood, when other firms are planning on joining the scheme, and how they’re responding to key challenges.