Making Tax Digital for Accountants: A Practical Guide for 2026/27

Team Nomi

Oct 09, 2026
6 minutes read

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Making Tax Digital (MTD) for Income Tax is now live. Since 6 April 2026, sole traders and landlords with qualifying income above £50,000 have been required to keep digital records and send quarterly updates to HMRC using compatible software.

For accountants, the change is more than a new filing requirement. MTD changes how client records are maintained, reviewed, and submitted throughout the year.

The first quarterly update deadline was 7 August 2026, followed by 7 November, 7 February, and 7 May for standard update periods.

So, what does MTD mean for accountants, and how can practices manage the new workflow?

What is Making Tax Digital for Income Tax?

Making Tax Digital for Income Tax requires eligible sole traders and landlords to keep digital records of their income and expenses and send quarterly updates to HMRC through compatible software.

Quarterly updates are not tax returns. They provide HMRC with summaries of income and expenses from the client’s digital records. At the end of the tax year, the client must complete the final tax return process through compatible software.

For accountants, this means moving from a largely annual compliance process towards a more regular cycle of bookkeeping, review, and reporting.

Who needs to use MTD for Income Tax?

MTD for Income Tax is being introduced in stages based on qualifying income from self-employment and property.

The qualifying income test is based on total income from self-employment and property before expenses.

Accountants should therefore review their client base by income level and identify when each client needs to follow MTD.

What does MTD change for accountants?

The biggest change is the move towards continuous digital record-keeping and quarterly reporting.

Instead of waiting for clients to provide records at the end of the tax year, accountants need processes for managing client information throughout the year.

This can affect several parts of a practice:

• • Client onboarding: identifying whether clients are in scope and getting them set up correctly.
  • Bookkeeping: keeping income and expenses recorded digitally.
  • Software: using compatible software that can maintain digital records and submit updates.
  • Review: checking client records regularly rather than leaving everything until year-end.
  • Client communication: explaining what clients need to record and when information is required.
  • Quarterly submissions: reviewing and sending updates by the relevant deadlines.
  • Year-end work: completing the finalisation process and tax return.

How accountants can manage MTD clients

A clear workflow can make MTD easier to manage across a client portfolio.

1. Identify clients who need to use MTD

Start by reviewing your Self Assessment client base.

Group clients according to their qualifying income and MTD start date. This gives your practice a clear list of clients who are already in scope and those who will enter MTD in future years.

2. Review how clients currently keep records

Not every client will have the same level of digital readiness.

Identify clients who currently use:

• • Cloud accounting software
  • Desktop accounting software
  • Spreadsheets
  • Paper records
  • A mixture of systems

Clients relying heavily on spreadsheets or paper records may need more support moving to digital record keeping.

3. Choose compatible software

Clients need compatible software to maintain their digital records and send quarterly updates to HMRC.

For accountants, standardising the software used across suitable parts of the client portfolio can be useful. This can simplify training, support and internal processes.

4. Set up a regular review process

MTD works best when client records are kept up to date throughout the year.

Rather than reviewing everything immediately before a deadline, practices can introduce regular checks covering:

• • Income
  • Expenses
  • Bank transactions
  • Missing records
  • Receipts
  • Coding
  • Reconciliations
  • Unusual transactions

This helps identify problems before they affect a quarterly submission.

5. Set clear client deadlines

The HMRC MTD deadline is not necessarily the best internal deadline for your practice.

Set an earlier date for clients to provide missing information and give your team enough time to review the records before submitting the quarterly update.

For example:

Client records due → Accountant review → Corrections → Client approval → HMRC submission

This gives the practice a repeatable process for each quarter.

What should accountants look for in MTD software?

Choosing software is an important part of an MTD implementation plan.

Look for software that supports the complete workflow rather than only the final submission.

Key areas to consider include:

• • Digital record keeping
  • MTD-compatible submissions
  • Bank feeds
  • Bookkeeping and reconciliation
  • Receipt and document capture
  • Client access
  • Accountant review
  • Tax workflows
  • Data transfer between bookkeeping and tax processes
  • Support for multiple clients from the practice

The right setup will depend on the client’s circumstances and the way your practice manages bookkeeping and tax work.

How Nomi can support MTD workflows

Nomi helps accountants manage MTD workflows from digital record keeping through to quarterly submissions.

With MTD-ready bookkeeping, bank feeds and connected client records in one platform, accountants can keep client information up to date, review records before each quarterly update and manage MTD submissions without moving between multiple systems.

For practices managing multiple MTD clients, Nomi provides a central workflow for keeping records organised and managing recurring quarterly reporting.

Frequently asked questions

1. What is MTD for accountants?
   MTD for accountants means managing clients who are required to keep digital records and submit information to HMRC through compatible software. It also requires practices to adapt their bookkeeping, review and client communication processes.
2. When did MTD for Income Tax start?
   The first mandatory phase of MTD for Income Tax started on 6 April 2026 for individuals with qualifying income from self-employment and property above £50,000.
3. How often do MTD clients report to HMRC?
   Clients generally need to send quarterly updates covering their self-employment and property income and expenses. Standard update deadlines are 7 August, 7 November, 7 February and 7 May.
4. Do quarterly MTD updates replace Self Assessment?
   No. Quarterly updates are not tax returns. Clients still need to complete the year-end tax return process and report relevant information required by HMRC.
5. What software do accountants need for MTD?
   Accountants need software that is compatible with MTD requirements and can maintain the required digital records and submit the relevant information to HMRC.
6. Can accountants manage MTD for their clients?
   Yes. Accountants can support clients with software setup, digital record keeping, reviews and submissions. HMRC provides separate guidance for agents managing MTD clients.