{"id":23256,"date":"2025-07-18T15:21:55","date_gmt":"2025-07-18T14:21:55","guid":{"rendered":"https:\/\/www.sage.com\/en-gb\/blog\/?p=23256"},"modified":"2026-02-26T14:55:46","modified_gmt":"2026-02-26T14:55:46","slug":"mtd-for-income-tax-hmrc-digital-transformation","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-gb\/blog\/mtd-for-income-tax-hmrc-digital-transformation\/","title":{"rendered":"MTD for Income Tax: The biggest shift in 25 years\u2014driven by HMRC, shaped by accountants and bookkeepers"},"content":{"rendered":"<header class=\"entry-header has-dark-background-color entry-header--has-illustration entry-header--has-illustration--generic\">\n\t<div class=\"container\">\n\t\t<div class=\"entry-header__row row align-center\">\n\t\t\t<div class=\"col col-lg-7 col-xlg-6 entry-header__content\">\n\t\t\t\t\t\t\t<div class=\"component component-single-header\">\n\t\t\t\t\t\t\t\t\t\t<div class=\"entry-header__misc text--subtitle text--uppercase text--small\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/category\/strategy-legal-operations\/\" class=\"entry-header__link\">Strategy, Legal &amp; Operations<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t<div class=\"entry-title-wrapper\">\n\t\t\t\t\t<h1 class=\"entry-title\">\n\t\t\t\t\t\tMTD for Income Tax: The biggest shift in 25 years\u2014driven by HMRC, shaped by accountants and bookkeepers\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t<p class=\"entry-header__description\">\n\t\t\t\t\t\t\t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n\t\t<div class=\"single-post-details container\">\n\t\t<div class=\"col\">\n\t\t\t<span class=\"posted-on \">Published <time class=\"entry-date published\" datetime=\"2025-07-18T15:21:55+01:00\">18 July, 2025<\/time><\/span><span class=\"reading-time\"> min read<\/span>\n\t\t<button\n\t\t\ttype=\"button\"\n\t\t\tclass=\"social-share-button button button--icon button--secondary js-social-share-button\"\n\t\t\tdata-share-title=\"MTD for Income Tax: The biggest shift in 25 years\u2014driven by HMRC, shaped by accountants and bookkeepers\"\n\t\t\tdata-share-url=\"https:\/\/www.sage.com\/en-gb\/blog\/mtd-for-income-tax-hmrc-digital-transformation\/\"\n\t\t\tdata-share-text=\"Please read this interesting article\"\n\t\t>\n\t\t\t<span class=\"social-share-button__share-label\">Share<\/span>\n\t\t\t<span class=\"social-share-button__copy-label\" hidden>Copy Link<\/span>\n\t\t\t<span class=\"social-share-button__copy-tooltip\" aria-hidden=\"true\" hidden>Copied<\/span>\n\t\t<\/button>\n\n\t\t\t\t<\/div>\n\t<\/div>\n\t<\/header>\n\n\n\n<div class=\"wp-block-post-author has-dark-background-color alignfull\">\n\t<div class=\"container\">\n\t\t<div class=\"col\">\n\t\t\t\t\t\t\t<div class=\"co-authors\">\n\t\t\t\t\t\n\t\t<div class=\"entry-author-wrapper\">\n\t\t\t<a class=\"entry-author\" href=\"https:\/\/www.sage.com\/en-gb\/blog\/author\/asavinwattanajantra\/\">\n\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"40\" height=\"40\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2026\/03\/Asavin-350x350.jpg\" class=\"entry-author__image\" alt=\"Asavin\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2026\/03\/Asavin-350x350.jpg 350w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2026\/03\/Asavin-768x768.jpg 768w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2026\/03\/Asavin-810x810.jpg 810w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2026\/03\/Asavin.jpg 1000w\" sizes=\"auto, (max-width: 40px) 100vw, 40px\" \/>\t\t\t\t<span class=\"entry-author__name\">Asavin Wattanajantra<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.sage.com\/en-gb\/making-tax-digital\/\" target=\"_blank\" rel=\"noreferrer noopener\">Making Tax Digital (MTD) for Income Tax<\/a> is the start of something much bigger: a long-term transformation of how tax works in the UK\u2014and the biggest shift for accountants and bookkeepers in 25 years. It\u2019s a change that will shape the future of your practice.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">MTD for VAT is already compulsory for most VAT-registered businesses. Now, with MTD for Income Tax mandation approaching for <a href=\"https:\/\/www.sage.com\/en-gb\/making-tax-digital\/sole-trader\/\" target=\"_blank\" rel=\"noreferrer noopener\">sole traders<\/a> and <a href=\"https:\/\/www.sage.com\/en-gb\/making-tax-digital\/landlords\/\" target=\"_blank\" rel=\"noreferrer noopener\">landlords<\/a>, we can see HMRC laying out its broader digital vision\u2014driven by pre-populated tax returns, real-time data matching, and AI-supported compliance.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In this article, we\u2019ll share insights from <a href=\"https:\/\/www.sage.com\/en-gb\/blog\/accountex-ai-future\/\" target=\"_blank\" rel=\"noreferrer noopener\">Accountex London 2025<\/a> about how these changes are unfolding\u2014and what they mean for accountants and bookkeepers.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The message is clear: adapting to MTD for Income Tax today will prepare you for what comes next in HMRC\u2019s wider transformation.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Here\u2019s what we cover:<\/strong><\/p>\n\n\n<?xml encoding=\"utf-8\" ?><div class=\"wp-block-yoast-seo-table-of-contents yoast-table-of-contents\"><ul><li><a href=\"#h-why-mtd-for-income-tax-is-a-foundation-for-change\" data-level=\"2\">Why MTD for Income Tax is a foundation for change<\/a><\/li><li><a href=\"#h-hmrc-s-vision-from-tax-returns-to-real-time-automation\" data-level=\"2\">HMRC&rsquo;s vision: From tax returns to real-time automation<\/a><\/li><li><a href=\"#h-the-uk-s-take-on-e-invoicing-a-different-path-with-big-implications\" data-level=\"2\">The UK&rsquo;s take on e-invoicing: A different path, with big implications<\/a><\/li><li><a href=\"#h-why-accountants-and-bookkeepers-are-central-to-this-shift\" data-level=\"2\">Why accountants and bookkeepers are central to this shift<\/a><\/li><li><a href=\"#h-how-to-prepare-your-practice-now\" data-level=\"2\">How to prepare your practice now<\/a><\/li><li><a href=\"#h-final-thoughts\" data-level=\"2\">Final thoughts<\/a><\/li><\/ul><\/div>\n\n\n\n<div class=\"single-cta gated-content\">\n\t<div class=\"single-cta__positioner on-scroll-highlight__target\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">E-Book: MTD for Income Tax\u2014The final countdown playbook for practices<\/h2>\n\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-983aa507-78de-4b74-bc4d-ca90a0b2ff1f\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Get Making Tax Digital: The Final Countdown Playbook<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1215\" height=\"810\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/09\/GettyImages-1392324314-1215x810.jpg\" class=\"single-cta__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/09\/GettyImages-1392324314-1215x810.jpg 1215w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-why-mtd-for-income-tax-is-a-foundation-for-change\">Why MTD for Income Tax is a foundation for change<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">MTD for Income Tax is about much more than replacing paper with digital forms.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">MTD for Income Tax introduces structure to data\u2014capturing income and expenses in real time, in formats that HMRC can process, verify, and eventually automate.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Jonathan Athow, director general for Customer Strategy and Tax Design at HMRC and advisor to ministers on UK tax policy, describes MTD for Income Tax as a major building block in a more efficient and less intrusive tax system. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Rather than relying on reactive year-end filings, HMRC wants a future where the tax system works quietly in the background.<\/p>\n\n\n\n<figure class=\"wp-block-pullquote\"><blockquote><p>\u201cWe want to design out the need for people to contact us at all.\u201d <\/p><cite>Jonathan Athow, HMRC<\/cite><\/blockquote><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Regular digital updates create a foundation of structured data that allows HMRC to move beyond tax return-based workflows.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For accountants and bookkeepers, your job is to maintain continuous data quality throughout the year.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cQuarterly updates aren\u2019t tax returns\u2014they\u2019re unadjusted snapshots of income and expenditure that build a behavioural foundation for better record-keeping,\u201d explains Craig Ogilvie, HMRC\u2019s director of Making Tax Digital.<\/p>\n\n\n\n<figure class=\"wp-block-pullquote\"><blockquote><p>\u201cQuarterly updates let us provide better tax estimates using HMRC-held data and help nudge taxpayers where action is needed.\u201d <\/p><cite>Craig Ogilvie, director, Making Tax Digital, HMRC<\/cite><\/blockquote><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-hmrc-s-vision-from-tax-returns-to-real-time-automation\">HMRC\u2019s vision: From tax returns to real-time automation<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">HMRC\u2019s long-term goal is bold but clear: a future where tax just happens.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For millions of salaried workers, that\u2019s already reality via PAYE. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But for sole traders, landlords, and company directors, the tax system has relied on manual inputs, uploads, and corrections.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>So, what\u2019s next?<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">HMRC is building a more intelligent, automated infrastructure that blends third-party data, machine learning, and real-time APIs to remove friction and reduce the need for intervention.<\/p>\n\n\n\n<figure class=\"wp-block-pullquote\"><blockquote><p>\u201cWe already match about 80% of the third-party records we get. But the goal is to remove manual transcription entirely.\u201d&nbsp;<\/p><cite>Jonathan Athow, HMRC<\/cite><\/blockquote><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Here\u2019s what that vision looks like in action:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Pre-populated returns<\/strong>: data from banks, merchant acquirers, and payroll systems flows directly into returns, reducing errors and admin.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Real-time risk detection<\/strong>: AI models scan for anomalies, flag inconsistencies, and free up staff to focus where they\u2019re most needed.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>API-led data access<\/strong>: instead of uploading PDFs or forms, HMRC pulls live, structured data directly from software.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Digital assistants and integrated guidance:<\/strong> swift resolution of questions without the need for call centres.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">HMRC doesn\u2019t want to watch or penalise you\u2014it wants you to be more productive and quicker in completing your tax\u2014less friction, fewer errors, and better outcomes for compliant businesses.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-the-uk-s-take-on-e-invoicing-a-different-path-with-big-implications\">The UK\u2019s take on e-invoicing: A different path, with big implications<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.sage.com\/en-gb\/blog\/e-invoicing-in-the-uk\/\" target=\"_blank\" rel=\"noreferrer noopener\">E-invoicing<\/a> is fast becoming a global norm. Countries like Italy and Spain already require invoices to be submitted to tax authorities in real time to help auto-populate VAT returns and reduce fraud.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>But the UK might be taking a different route<\/strong>\u2014one that\u2019s less centralised, more flexible, and designed to reduce the burden on small businesses.<\/p>\n\n\n\n<figure class=\"wp-block-pullquote\"><blockquote><p>\u201cWe\u2019re more likely to use a decentralised model, where software providers or other third parties hold the data, and HMRC can access it when needed via APIs. That\u2019s more manageable for us\u2014and less burdensome for businesses.\u201d<\/p><cite>Jonathan Athow, HMRC<\/cite><\/blockquote><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Instead of mandating invoice uploads to government portals, HMRC would integrate quietly into existing software, allowing tools like <a href=\"https:\/\/www.sage.com\/en-gb\/accounting-software\/\" target=\"_blank\" rel=\"noreferrer noopener\">Sage Accounting<\/a> to become the connection point between your business data and the tax system.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-why-this-matters\"><strong>Why this matters:<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Late payment risk could reduce<\/strong>: e-invoicing opens the door to automated payment reminders, invoice tracking, and verified receipt\u2014all of which support stronger cash flow.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>VAT processes could evolve<\/strong>: structured invoice data means HMRC can cross-check VAT submissions in near real time, potentially reducing the need for corrections and audits.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Digital systems will become the norm<\/strong>: businesses still relying on manual processes or spreadsheets will struggle to comply or benefit from these changes.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-your-role-as-an-adviser\"><strong>Your role as an adviser:<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Help clients choose the right invoicing tools now\u2014before requirements become stricter.<\/li>\n\n\n\n<li>Educate them on the link between e-invoicing, VAT accuracy, and cash flow health.<\/li>\n\n\n\n<li>Stay informed on how Sage and other software providers are enabling API-ready compliance.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Bottom line:<\/strong> e-invoicing isn\u2019t mandatory yet\u2014but it\u2019s on HMRC\u2019s roadmap. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The firms helping clients adopt digital workflows now will be ready when it is.<\/p>\n\n\n\n<div class=\"single-cta gated-content\">\n\t<div class=\"single-cta__positioner on-scroll-highlight__target\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">E-Book: MTD for Income Tax\u2014The final countdown playbook for practices<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p><!-- wp:paragraph --><\/p>\n<p>Accountants and bookkeepers still have time to create a repeatable plan for MTD success. This e-Book explains how, via a fast-track mindset, and a 5-phase countdown to April 2026\u2014and beyond.<\/p>\n<p><!-- \/wp:paragraph --><\/p>\n<p><!-- wp:paragraph --><\/p>\n<p><!-- \/wp:paragraph --><\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-983aa507-78de-4b74-bc4d-ca90a0b2ff1f\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Get Making Tax Digital: The Final Countdown Playbook<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1215\" height=\"810\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/09\/GettyImages-1392324314-1215x810.jpg\" class=\"single-cta__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/09\/GettyImages-1392324314-1215x810.jpg 1215w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-why-accountants-and-bookkeepers-are-central-to-this-shift\">Why accountants and bookkeepers are central to this shift<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cTax just happening\u201d doesn\u2019t mean tax without accountants and bookkeepers. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">On the contrary, you\u2019re critical to making it possible.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You\u2019ll be:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Helping clients adopt digital tools<\/li>\n\n\n\n<li>Ensuring clean, structured data<\/li>\n\n\n\n<li>Navigating emerging rules and guidance<\/li>\n\n\n\n<li>Adding value where automation can\u2019t<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">MTD for Income Tax is the first step\u2014laying the groundwork for the systems, behaviours, and integrations to make tax \u201cjust happen\u201d.<\/p>\n\n\n\n<figure class=\"wp-block-pullquote\"><blockquote><p>\u201cWe\u2019re already doing some of this. But full automation depends on structured data, new tech, and buy-in from the accounting profession.\u201d <\/p><cite>Jonathan Athow, HMRC<\/cite><\/blockquote><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">The future HMRC outlines is a direction of travel, with MTD for Income Tax as the first real-world implementation.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Here\u2019s what accountants and bookkeepers need to take away:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-quarterly-updates-behavioural-shift\"><strong>Quarterly updates = behavioural shift<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">MTD for Income Tax is a mechanism to get clients working digitally and make real-time updates a habit. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">That behavioural change will support everything else: pre-population, risk reduction, and thoughtful planning.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-your-software-matters-more-than-ever\"><strong>Your software matters more than ever<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">With HMRC moving toward third-party data access and API-connected systems, your clients&#8217; tools will shape their experience\u2014and yours. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Clients using spreadsheets or manual methods won\u2019t benefit from automation, but those on cloud platforms will.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-the-advisor-role-is-evolving\"><strong>The advisor role is evolving<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">As compliance becomes more automated, your value shifts. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You\u2019ll still need to review, explain, and in many cases correct HMRC\u2019s assumptions\u2014but increasingly, your work will focus on:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Interpreting data<\/li>\n\n\n\n<li>Spotting edge cases<\/li>\n\n\n\n<li>Coaching clients through digital change<\/li>\n\n\n\n<li>Defending them when HMRC gets it wrong<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Navigating systems and HMRC processes will be just as important as your technical tax knowledge.<\/p>\n\n\n\n<figure class=\"wp-block-pullquote\"><blockquote><p>\u201cGood advice helps people get their tax right\u2026 It\u2019s valuable for complex affairs, vulnerable customers, and those confused by digital systems.\u201d <\/p><cite>Jonathan Athow, HMRC<\/cite><\/blockquote><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Accountants and bookkeepers who lean into this change\u2014rather than resist it\u2014are best placed to lead.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Wait for HMRC to perfect its systems before you act, and you\u2019ll miss the opportunity.<\/p>\n\n\n\n<figure class=\"wp-block-pullquote\"><blockquote><p>\u201cQuarterly updates will give us so much more information to give our clients the best advice. It\u2019s not just compliance\u2014it\u2019s about spotting issues like VAT thresholds early and being proactive.\u201d <\/p><cite>Carianne Pope, Pope Accountancy<\/cite><\/blockquote><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-to-prepare-your-practice-now\">How to prepare your practice now<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Don\u2019t won\u2019t wait for HMRC to finish setting up\u2014use MTD for Income Tax as a catalyst to modernise.<\/p>\n\n\n\n<figure class=\"wp-block-pullquote\"><blockquote><p>\u201cWe\u2019re shaping the system with you. Accountants have a real voice in what comes next.\u201d<\/p><cite>Jonathan Athow, HMRC<\/cite><\/blockquote><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-1-embrace-mtd-for-what-it-really-is\">1. Embrace MTD for what it really is<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">MTD for Income Tax is your entry point into building a practice built on clean data, real-time updates, and better decision-making.<\/p>\n\n\n\n<figure class=\"wp-block-pullquote\"><blockquote><p>\u201cMTD is the foundation that lets everything else work\u2014pre-population, APIs, automation.\u201d <\/p><cite>Jonathan Athow, HMRC<\/cite><\/blockquote><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Adopt MTD for Income Tax as a behavioural shift\u2014not a filing obligation\u2014and be better positioned for the future.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Use this transformative period to:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Automate manual workflows<\/li>\n\n\n\n<li>Set up repeatable check-ins with clients<\/li>\n\n\n\n<li>Build reporting habits that drive better planning<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-pullquote\"><blockquote><p>\u201cIt\u2019s about opening up the conversation with clients and telling them it\u2019s coming. We have to prepare for it\u2014and that starts by making sure they\u2019re aware and up to date with what\u2019s going on.\u201d <\/p><cite>Carianne Pope, Pope Accountancy<\/cite><\/blockquote><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-2-segment-your-client-base\">2. Segment your client base<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Work out who\u2019s digital-ready, who needs guidance, and who\u2019s likely to resist. Onboarding is easier when you know where clients are in their journey.<\/p>\n\n\n\n<figure class=\"wp-block-pullquote\"><blockquote><p>\u201cSome customers need hand-holding; others are already digital. The support needs are very different.\u201d <\/p><cite>Jonathan Athow, HMRC<\/cite><\/blockquote><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Segmentation could support better tooling, smoother workflows, and more tailored communication. You might want to divide customers in this way:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Digital-ready: on cloud software, open to automation<\/li>\n\n\n\n<li>On the fence: open to tech, but needs guidance and training<\/li>\n\n\n\n<li>At risk: resistant or reliant on manual records<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Create onboarding journeys for each group\u2014this helps you prioritise your time and increase adoption success.<\/p>\n\n\n\n<figure class=\"wp-block-pullquote\"><blockquote><p>\u201cI started by tagging clients by income threshold\u2014who\u2019s over \u00a350k, who\u2019s not\u2014so I could plan those conversations. Now we\u2019re tailoring messaging and using Sage tools to monitor who\u2019s ready, who needs more help, and who\u2019s likely to resist.\u201d<\/p><cite>Carianne Pope, Pope Accountancy<\/cite><\/blockquote><\/figure>\n\n\n\n<div class=\"single-cta gated-content\">\n\t<div class=\"single-cta__positioner on-scroll-highlight__target\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">E-Book: MTD for Income Tax\u2014The final countdown playbook for practices<\/h2>\n\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-983aa507-78de-4b74-bc4d-ca90a0b2ff1f\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Get Making Tax Digital: The Final Countdown Playbook<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1215\" height=\"810\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/09\/GettyImages-1392324314-1215x810.jpg\" class=\"single-cta__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/09\/GettyImages-1392324314-1215x810.jpg 1215w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-3-reassess-your-services-and-pricing\">3. Reassess your services and pricing<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">With HMRC automating the basics, your value shifts to interpretation, planning, and advice. It\u2019s time to rethink your bundles.<\/p>\n\n\n\n<figure class=\"wp-block-pullquote\"><blockquote><p>\u201c<em>Good advice really helps people get their tax right\u2026 and that\u2019s where accountants are vital.\u201d <\/em><\/p><cite>Jonathan Athow, HMRC<\/cite><\/blockquote><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Think tiered services: basic compliance + insights \u2192 strategic advisory. This aligns your pricing with where clients truly see value.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Introduce advisory tiers (e.g., MTD For Income Tax-only, MTD for Income Tax + monthly insights, full-year planning)<\/li>\n\n\n\n<li>Build pricing models around client outcomes, not hours<\/li>\n\n\n\n<li>Create service bundles that combine compliance with proactive coaching<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-4-talk-to-your-software-partners\">4. Talk to your software partners<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The tools you choose now shape your readiness for API-led workflows and real-time compliance.<\/p>\n\n\n\n<figure class=\"wp-block-pullquote\"><blockquote><p>\u201cHMRC won\u2019t build everything\u2014we rely on software partners to create those connections.\u201d <\/p><cite>Jonathan Athow, HMRC<\/cite><\/blockquote><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">If your provider isn\u2019t prioritising integration, automation, or UX, push them\u2014or consider alternatives.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Ask the right questions:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Are you building toward HMRC\u2019s API and data access roadmap?<\/li>\n\n\n\n<li>How are you supporting pre-population and AI insight layers?<\/li>\n\n\n\n<li>What tools do you provide for digital nudges, alerts, and collaboration?<\/li>\n\n\n\n<li>Do you have tools that match our future, not just our present?<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-pullquote\"><blockquote><p>\u201cDon\u2019t wait for the perfect system\u2014get involved now. If you wait too long, you\u2019ll miss the chance to influence the system and prepare your team in the real world, with real support.\u201d <\/p><cite>Craig Ogilvie, HMRC<\/cite><\/blockquote><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-5-stay-plugged-into-guidance-changes\">5. Stay plugged into guidance changes<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">HMRC is investing in more digital help and targeted support\u2014but it won\u2019t all arrive at once.<\/p>\n\n\n\n<figure class=\"wp-block-pullquote\"><blockquote><p>\u201cWe know there\u2019s a gap in clarity. We\u2019re working on better guidance, more dynamic support, and getting information out faster.\u201d<\/p><cite>Jonathan Athow, HMRC<\/cite><\/blockquote><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">In the meantime, stay informed. Sign up for updates, join webinars, and share feedback with HMRC where needed.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Sign up for consultation updates and working groups<\/li>\n\n\n\n<li>Join beta programmes (like the <a href=\"https:\/\/www.gov.uk\/guidance\/sign-up-your-business-for-making-tax-digital-for-income-tax\" target=\"_blank\" rel=\"noreferrer noopener\">MTD for Income Tax pilot<\/a>)<\/li>\n\n\n\n<li>Don\u2019t wait for perfect clarity\u2014test and adapt ahead of time<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-pullquote\"><blockquote><p>\u201cYou\u2019ll get access to HMRC\u2019s best support teams\u2014no wait times, direct help lines\u2014if you join the MTD pilot. We want testing firms to shape the system with us, not just comply with it.\u201d <\/p><cite>Craig Ogilvie, HMRC<\/cite><\/blockquote><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-final-thoughts\">Final thoughts<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">HMRC\u2019s vision is accelerating, but transformation doesn\u2019t happen through policy alone. It happens through the choices accountants and bookkeepers make now.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You\u2019re not adapting to change. You\u2019re shaping it.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The move to MTD for Income Tax is your signal to go beyond compliance.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It\u2019s a chance to modernise workflows, rebalance advisory versus admin, and lead clients into a smarter, more seamless tax experience.<\/p>\n\n\n\n<figure class=\"wp-block-pullquote\"><blockquote><p>\u201cMTD is just the beginning. The real goal is a simpler, smarter tax experience\u2014for clients and firms alike.\u201d<\/p><cite> Jonathan Athow, HMRC<\/cite><\/blockquote><\/figure>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Start testing software tools to stay ahead of the curve<\/li>\n\n\n\n<li>Visit our <a href=\"https:\/\/www.sage.com\/en-gb\/making-tax-digital\/accountants\/\" target=\"_blank\" rel=\"noreferrer noopener\">MTD for accountants<\/a> hub page for advice and guidance<\/li>\n<\/ul>\n\n\n\n<div class=\"single-cta gated-content\">\n\t<div class=\"single-cta__positioner on-scroll-highlight__target\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">E-Book: MTD for Income Tax\u2014The final countdown playbook for practices<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p><!-- wp:paragraph --><\/p>\n<p>Accountants and bookkeepers still have time to create a repeatable plan for MTD success. This e-Book explains how, via a fast-track mindset, and a 5-phase countdown to April 2026\u2014and beyond.<\/p>\n<p><!-- \/wp:paragraph --><\/p>\n<p><!-- wp:paragraph --><\/p>\n<p><!-- \/wp:paragraph --><\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-983aa507-78de-4b74-bc4d-ca90a0b2ff1f\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Get Making Tax Digital: The Final Countdown Playbook<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1215\" height=\"810\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/09\/GettyImages-1392324314-1215x810.jpg\" class=\"single-cta__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/09\/GettyImages-1392324314-1215x810.jpg 1215w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n\n\n<div class=\"single-cta\">\n\t<div class=\"single-cta__positioner on-scroll-highlight__target\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Subscribe to the Sage Advice newsletter<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p>Join more than 500,000 UK readers and get the best business admin strategies and tactics, as well as actionable advice to help your company thrive, in your inbox every month.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-b1a63862-3fa0-4a5e-bb67-c76b88bbc6b8\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Subscribe now<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1073797282-1-1440x810.jpg\" class=\"single-cta__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1073797282-1-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n\n<section class=\"more-topics alignfull has-grey-light-background-color wp-block-sage-post-topics\">\n\t<div class=\"container\">\n\t\t<div class=\"row\">\n\t\t\t<div class=\"col col-12 col-lg-4\">\n\t\t\t\t<h3 class=\"more-topics__title h2\">Browse more topics from this article<\/h3>\n\t\t\t<\/div>\n\t\t\t<div class=\"col col-12 col-lg-8\">\n\t\t\t\t<ul class=\"post-tags__list\">\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/tag\/accountant-accounting\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tAccountant accounting\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/tag\/bookkeeping\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tBookkeeping\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/tag\/business-performance\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tBusiness performance\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/tag\/grow-business\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tHow to grow your business\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/tag\/mtd-accountants\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tMaking Tax Digital for accountants\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/tag\/making-tax-digital-for-income-tax\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tMaking Tax Digital for Income Tax\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/tag\/midsized-business\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tMidsized business\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t<\/ul>\n\t\t\t<\/div>\n\t\t<\/div>\n\t<\/div>\n<\/section>\n\n<div class=\"alignfull wp-block-sage-related-posts\">\n\t<section class=\"related-posts card-grid has-dark-background-color\">\n\t<div class=\"container\">\n\t\t\t\t\t<div class=\"row\">\n\t\t\t\t<div class=\"col\">\n\t\t\t\t\t<h2 class=\"related-posts__heading related-posts__heading--featured h1\">Explore more wisdom<\/h2>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\n\t\t\t<div class=\"row related-posts__featured\">\n\t\t\t\t<div class=\"col card-grid__item\">\n\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-0 post-28630 post type-post status-publish format-standard has-post-thumbnail hentry category-strategy-legal-operations tag-accountant-accounting tag-accountant-automation tag-accountant-tax tag-mtd-accountants business_type-accountants card-post--is-clickable\"\n>\n\t<div class=\"card-post__media-wrapper\">\n\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"1215\" height=\"810\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/09\/GettyImages-1417607850-1215x810.jpg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/09\/GettyImages-1417607850-684x384.jpg 684w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/09\/GettyImages-1417607850-768x512.jpg 768w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/09\/GettyImages-1417607850-1215x810.jpg 1215w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\t<\/div>\n\n\t<div class=\"card-post__content\">\n\t\t\t\t\t<div class=\"card-post__label\">Recommended<\/div>\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-07-31T14:40:55+01:00\">31 July, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">12 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h3\">\n\t\t\t\t\t\t\t<a\n\t\t\t\t\tclass=\"card-post__title-link\"\n\t\t\t\t\thref=\"https:\/\/www.sage.com\/en-gb\/blog\/pricing-for-mtd-how-to-charge-more-and-prove-why-it-s-worth-it\/\"\n\t\t\t\t>\n\t\t\t\n\t\t\tPricing for MTD: How to charge more, and prove\u00a0it&#8217;s\u00a0worth it\u00a0\n\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t<\/p>\n\n\t\t\n\t\t\t\t\t<p class=\"card-post__description\">\n\t\t\t\tHow should you price for Making Tax Digital? Learn why old pricing models no longer work and see how you can charge more while keeping clients 100% happy. \t\t\t<\/p>\n\t\t\n\t\t\t<\/div>\n\n\t<\/article>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\n\t\t\t\t\t<div class=\"row related-posts__non-featured\">\n\t\t\t\t<div class=\"col col-12\">\n\t\t\t\t\t<h2 class=\"related-posts__heading related-posts__heading--more h4\">More on this Topic<\/h2>\n\t\t\t\t<\/div>\n\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-1 post-10211 post type-post status-publish format-standard has-post-thumbnail hentry category-money-matters category-strategy-legal-operations tag-accountant-accounting tag-accountant-tax tag-accountants-online-hub-gb tag-business-finances tag-mtd-accountants tag-mtd-business tag-making-tax-digital-for-income-tax tag-making-tax-digital-for-vat tag-need-to-know tag-tax tag-vat business_type-small-business business_type-accountants\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-gb\/blog\/hmrc-penalty-making-tax-digital\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1267191201_updated-684x384.jpg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1267191201_updated-684x384.jpg 684w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1267191201_updated-768x432.jpg 768w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1267191201_updated-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-07-31T09:06:37+01:00\">31 July, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">8 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tMaking Tax Digital for Income Tax penalties: HMRC&#8217;s new systems explained\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-2 post-29088 post type-post status-publish format-standard has-post-thumbnail hentry category-money-matters category-strategy-legal-operations tag-accountant-accounting tag-accountant-automation tag-accountant-tax tag-accountants-online-hub-gb tag-mtd-accountants tag-making-tax-digital-for-income-tax tag-tax business_type-accountants\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-gb\/blog\/mtd-for-income-tax-operational-reset\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2024\/09\/Man-understanding-basis-points-684x384.jpg\" class=\"card-post__image\" alt=\"Man understanding basis points\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2024\/09\/Man-understanding-basis-points-684x384.jpg 684w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2024\/09\/Man-understanding-basis-points-768x512.jpg 768w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2024\/09\/Man-understanding-basis-points-1214x810.jpg 1214w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-07-30T16:27:20+01:00\">30 July, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">10 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tMTD for Income Tax is an operational reset\u2014and the best reason to rebuild your firm\u2019s foundations\u00a0\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 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2.309L4.692 33.144c-.952.517-1.999-.088-1.999-1.155V4.878c0-.533.261-.95.642-1.17.19-.11.411-.171.644-.172\" \/><\/svg>\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t<svg role=\"presentation\" aria-hidden=\"true\" focusable=\"false\" width=\"24\" height=\"24\" class=\"card-post__meta-icon svg-icon\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewbox=\"0 0 24 24\"><path d=\"M5.25 3C3.74 3 2.5 4.24 2.5 5.75v12.5C2.5 19.76 3.74 21 5.25 21h14c1.51 0 2.75-1.24 2.75-2.75V5.75C22 4.24 20.76 3 19.25 3zm0 1.5h14c.699 0 1.25.551 1.25 1.25v12.5a1.24 1.24 0 0 1-1.25 1.25h-14A1.24 1.24 0 0 1 4 18.25V5.75c0-.699.551-1.25 1.25-1.25m.25.75a.5.5 0 0 0-.5.5v.5a.5.5 0 0 0 .5.5H6a.5.5 0 0 0 .5-.5v-.5a.5.5 0 0 0-.5-.5zm13 0a.5.5 0 0 0-.5.5v.5a.5.5 0 0 0 .5.5h.5a.5.5 0 0 0 .5-.5v-.5a.5.5 0 0 0-.5-.5zm-8.25 2.751A1.248 1.248 0 0 0 9 9.251v5.5c0 .442.231.849.613 1.074.389.231.846.237 1.239.021l5.001-2.751c.396-.219.646-.639.646-1.094s-.25-.876-.646-1.095l-.001-.001-5.002-2.751a1.25 1.25 0 0 0-.601-.153zM5.5 8.25a.5.5 0 0 0-.5.5v.5a.5.5 0 0 0 .5.5H6a.5.5 0 0 0 .5-.5v-.5a.5.5 0 0 0-.5-.5zm13 0a.5.5 0 0 0-.5.5v.5a.5.5 0 0 0 .5.5h.5a.5.5 0 0 0 .5-.5v-.5a.5.5 0 0 0-.5-.5zm-8 1.423L14.731 12 10.5 14.328zm-5 1.577a.5.5 0 0 0-.5.5v.5a.5.5 0 0 0 .5.5H6a.5.5 0 0 0 .5-.5v-.5a.5.5 0 0 0-.5-.5zm13 0a.5.5 0 0 0-.5.5v.5a.5.5 0 0 0 .5.5h.5a.5.5 0 0 0 .5-.5v-.5a.5.5 0 0 0-.5-.5zm-13 3a.5.5 0 0 0-.5.5v.5a.5.5 0 0 0 .5.5H6a.5.5 0 0 0 .5-.5v-.5a.5.5 0 0 0-.5-.5zm13 0a.5.5 0 0 0-.5.5v.5a.5.5 0 0 0 .5.5h.5a.5.5 0 0 0 .5-.5v-.5a.5.5 0 0 0-.5-.5zm-13 3a.5.5 0 0 0-.5.5v.5a.5.5 0 0 0 .5.5H6a.5.5 0 0 0 .5-.5v-.5a.5.5 0 0 0-.5-.5zm13 0a.5.5 0 0 0-.5.5v.5a.5.5 0 0 0 .5.5h.5a.5.5 0 0 0 .5-.5v-.5a.5.5 0 0 0-.5-.5z\" \/><\/svg>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-07-29T14:48:03+01:00\">29 July, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">11 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tMaking Tax Digital for VAT: complete guide to compulsory requirements\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n<\/section>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Discover insights from Accountex London 2025 about how Making Tax Digital for Income Tax changes are unfolding and what they mean for accountants and bookkeepers.<\/p>\n","protected":false},"author":356,"featured_media":22963,"menu_order":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sage_video":false,"post_featured_image_hide":false,"sage_hide_published_date":false,"sage_hide_read_time":false,"sage_hide_share_buttons":false,"_pwl_sage_podcast_buzzsprout_src":"","footnotes":""},"categories":[6,9],"tags":[223,23,180,15,29,343,159],"business_type":[115],"lilypad":[],"context":[],"industry":[],"persona":[67,73,74],"imagine_tag":[726,77,91,142,334,96,727,109],"coauthors":[351],"class_list":["post-23256","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-money-matters","category-strategy-legal-operations","tag-accountant-accounting","tag-bookkeeping","tag-business-performance","tag-grow-business","tag-mtd-accountants","tag-making-tax-digital-for-income-tax","tag-midsized-business","business_type-accountants"],"sage_meta":{"region":"en-gb","author_name":"Asavin Wattanajantra","featured_image":"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2025\/06\/bookkeeper.jpg","imagine_tags":{"726":"Accountants","77":"Accounting software","91":"Growing business","142":"Making Tax Digital for businesses","334":"Making tax digital for income tax","96":"Medium businesses","727":"Self Assessment and Making Tax Digital for Income Tax","109":"Small business"}},"distributor_meta":false,"distributor_terms":false,"distributor_media":false,"distributor_original_site_name":"Sage Advice UK","distributor_original_site_url":"https:\/\/www.sage.com\/en-gb\/blog","push-errors":false,"_links":{"self":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/posts\/23256","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/users\/356"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/comments?post=23256"}],"version-history":[{"count":0,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/posts\/23256\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/media\/22963"}],"wp:attachment":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/media?parent=23256"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/categories?post=23256"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/tags?post=23256"},{"taxonomy":"business_type","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/business_type?post=23256"},{"taxonomy":"lilypad","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/lilypad?post=23256"},{"taxonomy":"context","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/context?post=23256"},{"taxonomy":"industry","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/industry?post=23256"},{"taxonomy":"persona","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/persona?post=23256"},{"taxonomy":"imagine_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/imagine_tag?post=23256"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/coauthors?post=23256"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}