Making Tax Digital (MTD) for Income Tax (IT) is set to bring big changes for sole traders and landlords across the UK. The first phase starts in April 2026 with a threshold of £50k, it’ll lower to £30k in April 2027, and £20k from April 2028. Read our blog to find out if you’re affected by it.
With these changes many business owners are asking a crucial question: What is the role of my accountant in all of this?
While MTD is all about moving to digital records and software, this doesn't diminish the value of a good accountant. In fact, their role is set to become even more important as they guide businesses through these new obligations. Here's a look at how an accountant can help you navigate MTD with confidence.
Understanding the new rules and deadlines
The rules of MTD for IT can be complex. They require you to keep digital records and submit quarterly updates of your income and expenses to HMRC. Instead of one annual tax return, you’ll be making multiple submissions throughout the year, followed by a final declaration.
A good accountant will be your expert guide through this new landscape. They can explain exactly what MTD means for your specific business, help you understand the new reporting frequency, and make sure you're aware of the deadlines so you can avoid any potential penalties. They'll also stay up to date with any changes from HMRC, so you don't have to.
Choosing the right software for your business
The foundation of MTD is using "functional compatible software." With many options on the market, choosing the right one can feel overwhelming. Your accountant can act as a trusted advisor, helping you select the software that best suits your business size, industry, and complexity.
At Mettle, we want to help you become tax confident. That’s why we offer our customers FreeAgent accounting software included*. This not only provides a powerful, MTD-compliant solution but also gives you a seamless connection between your banking and your bookkeeping. An accountant familiar with platforms like FreeAgent can help you get set up and make sure you're using the software effectively.
Making sure your records are correct
One of the biggest shifts with MTD is the move from paper to digital records. An accountant can help you establish efficient new habits for digital record keeping, helping you capture all necessary information for each transaction. This includes:
Understanding "digital links": An accountant can clarify what HMRC means by a "digital link," making sure that data flows from your records to the MTD software without manual re-keying (e.g. copying and pasting).
Managing expenses: They can help you properly categorise your expenses and make sure you are claiming all of your allowable deductions, which can reduce your tax bill.
Quarterly updates: There will be four updates throughout the year: 7 August, 7 November, 7 February and 7 May and then the final declaration in January. While quarterly updates are often simplified summaries, an accountant can review them to check they are accurate and provide the correct picture of your business's financial health throughout the year.
A strategic partner, not just a tax filer
With MTD requiring more frequent submissions, your accountant can move beyond being a once-a-year tax filer and become a more active, strategic partner.
Proactive advice: With up-to-date digital records, your accountant can provide more timely insights into your business’s performance, cash flow, and profitability.
Forecasting tax bills: The quarterly data provides a much clearer picture of your tax liability throughout the year. Your accountant can use this to help you forecast your upcoming tax bill and budget for payments on account, so you’re never caught off guard. This aligns with Mettle's tax calculation feature, which helps you see a running total of your tax so you can set money aside as you earn it.
Avoiding penalties: There is a £200 fine after four late-submission points. These points reset after 24 months if you remain compliant. Your accountant can help you understand the new points-based penalty system for late submissions and guide you in establishing good habits to stay compliant and avoid fines.
The power of collaboration
The move to MTD isn’t just about changing software, it’s about changing how you work with your accountant. By adopting a digital-first approach with a platform like Mettle and FreeAgent, you can give your accountant secure, real-time access to your financial data. This allows them to provide better, more timely advice, making your collaboration more efficient and effective.
In conclusion, MTD for IT is a significant change, but with the right tools and the right accountant, it can be a positive step for your business. An accountant’s role is evolving from a reactive one to a proactive one, helping you to not just file your tax returns, but to gain greater control and confidence over your business’s financial future.
*To get FreeAgent for free, customers have to make at least one transaction a month from their Mettle account. If they don’t make one transaction a month, or if their Mettle account is closed and they continue to use FreeAgent then the FreeAgent fees will apply. Mettle and FreeAgent have optional paid-for features available.
The content of this blog is based on our understanding of the topic at the time of publication and should not be taken as professional advice. Any of the information may be subject to change. You are responsible for complying with tax law and if in doubt, should seek independent advice.
Blog correct as of: 14 August 2025
