By now, most UK accountants have heard the message loud and clear: Making Tax Digital for Income Tax (MTD for ITSA) is coming and it’s going to reshape how practices work with self-employed clients and landlords.
But what’s less talked about is the opportunity it brings.
With the April 2026 mandate fast approaching, now is the time to ask:
Is your firm going to hunker down into compliance mode or use this shift to unlock a more scalable, profitable model?
It’s a pivot point. One that forces practices to rethink client workflows, adopt digital tools, and, perhaps most importantly, move into higher-value advisory territory.
According to the Xero UK 2025 Industry Report, 75% of accountants feel positive about the upcoming mandate, and 82% believe MTD will help them win new clients.
This isn’t just optimism, it’s recognition that clients will need more help navigating a digital-first tax world, and the firms that step up will reap the rewards.
As we head into the final stretch before rollout, smart firms are already making moves to:
The Xero report highlights that practices using cloud software see increased client satisfaction, improved efficiency, and more time to grow their business. But many aren’t fully unlocking the tools they already have.
Only 59% of bookkeeping work is currently done in the cloud, and only a third of firms use features like connected bank feeds or payment tools across most clients.
MTD is the moment to change that, to go from ticking boxes to designing a smarter, more valuable practice.
Whether you're a sole practitioner or managing a large firm, the opportunity is real:
More automation, more client needs, more room to do work that matters.
And we’re here to help you navigate it all.
Download the full Xero UK 2025 Accounting & Bookkeeping Industry Report to see how your peers are preparing and what trends are shaping the path forward.
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