Non-digitalised clients and understanding the rules: How are accountants overcoming key challenges for MTD for Income Tax?

• Are accountants prepared for MTD for Income Tax?
• Are landlords prepared for MTD for Income Tax?
• Are sole traders prepared for MTD for Income Tax?
• Key concerns include data quality, client onboarding, and software selection
• Simpler reporting is expected, despite concerns
• Non-digitalised clients present a challenge
• How will accountants work with less digitalised clients?
• What our MTD for Income Tax report found

The scheme is now live, and our findings  show a market that knows what's coming but is still establishing what it looks like on the ground.

This blog explains what some of those findings mean for your practice.

Are accountants prepared for MTD for Income Tax?

Accountants show strong familiarity with the requirements. In our survey of 100 UK accountants, 65% say  they understand what's required either very well or well, and many view MTD as a positive development for efficiency and the future of advisory services.
Confidence levels vary across client bases, though, and a significant proportion expect increased pressure around education and getting people set up on Making Tax Digital software. Handling a client base spread across different stages of digital capability is emerging as one of the defining challenges of this transition. 

Are landlords prepared for MTD for Income Tax?

Landlords are the most prepared of the three audiences we surveyed. Around two-thirds (66%) describe themselves as knowing a lot about MTD requirements or being fully familiar with them, and 86% say they have a good understanding of what they need to do to comply.

Four in five landlords (80%) say they feel ready, and 28% had already taken steps such as consulting official guidance or attending webinars ahead of the April 2026 deadline.

Accountants take a more cautious view, though. This suggests a gap between how confident landlords feel and how ready their accountants consider them to be, which means there's still meaningful support to provide.

Are sole traders prepared for MTD for Income Tax?

Sole traders present a different picture. While awareness of MTD is similarly high across this group, understanding of the specifics is less certain. Almost half (46%)  say they've heard of it but know very little about what it actually involves.

Preparedness levels are also lower. At the time of our survey, just 64% felt ready for the April 2026 deadline, compared with 80% of landlords, and one in five (20%) had taken no steps to prepare.

Their concerns centred on capacity and confidence. The time required to become compliant weighed most heavily, with more than a third (36%) citing this as their primary challenge. A further 32% felt uncertain about the rules, and 30% were anxious about the risk of penalties or fines.

Key concerns include data quality, client onboarding, and software selection

For accountants, the most pressing operational challenges are practical ones. Our research shows that 47% identify data quality and reconciliation as a major hurdle, and 44% highlight the difficulties of getting clients onto new systems and managing the digital transition. Software selection and integration follows closely, cited by 43%.

Additional time and expenses are also a factor, flagged by 39% of accountants, reflecting the significant workload involved in preparing people for the shift. These figures illustrate the scale of the task, particularly for firms handling a client base spread across different stages of digital capability.

Simpler reporting is expected, despite concerns

Across all groups, making submissions to HMRC simpler is widely seen as the primary benefit of MTD. Among landlords and sole traders, 46% cite this as the main advantage, and accountants agree: 50% believe their clients will benefit most from a clearer, more streamlined process.