Money Matters

Bookkeepers and MTD for Income Tax: What your clients need

MTD for Income Tax is coming and bookkeepers are perfectly placed to lead. With new rules, responsibilities, and opportunities, now’s the time to define your role, sharpen workflows, and own the client relationship.

Accountex London 2025 may have come and gone, but this message resonates: for bookkeepers, Making Tax Digital (MTD) for Income Tax is your moment to lead.

Bookkeepers handle the fundamental groundwork, both in preparing clients for MTD for Income Tax, and once it launches.

Never mind Making Tax Digital—it’s Making Bookkeeping Mandatory that matters.

This article shows how you, as a bookkeeper, can streamline MTD for Income Tax workflows, support small businesses more effectively, and create space to grow your practice.

Here’s what we cover:

Why bookkeepers matter more than ever

MTD for Income Tax makes the role of both the accountant and bookkeeper essential. The line between the two might be blurred within your practice, but when it comes to bookkeeping, the following is always true:

• You’re the one keeping the records clean.
• You’re the one inside the numbers every day.
• You’re the one with frequent and often informal client touchpoints, outside of the accountant’s once-yearly compliance work.

There’s nobody better placed to help clients transition to MTD for Income Tax, especially when paired with an accountant who respects your role.

This matters because while MTD for Income Tax isn’t changing tax, it’s changing how it’s reported.

There are more frequent updates, plus strict digital record requirements, and pressure on getting the numbers right in real time.

This is where bookkeepers shine.

Here’s what Ami Copeland, CEO of the Institute of Certified Bookkeepers, said in her keynote at Accountex:

Bookkeepers are the enablers of advisory. Without clean, real time data, you can’t deliver modern accountancy services.

Ami Copeland, CEO, Institute of Certified Bookkeepers

You’re already doing this: logging daily transactions, chasing receipts, staying close to the books.

With MTD for Income Tax, that work becomes mission-critical.

• You know the software better.
• You’re closer to the client’s operations.
• And now, you’re central to legal tax compliance.

Working together: How MTD for Income Tax changes the game

Quarterly updates are not tax returns. They’re summaries. No adjustments are required. No tax calculations. Just clean data. That’s bookkeeping work.

Instead of one chaotic year-end crunch, MTD for Income Tax offers four structured opportunities a year to check in with a client (if you haven’t already), course-correct, and proactively support clients.

And thanks to Multiple Agent Access within the Agent Services Account, the system finally supports you.

You can have multiple supporting agents. They can submit the quarterly updates, maintain the data, and still leave the final return to the main agent.

Ami Copeland

What does Multiple Agent Access mean in practice?

In the language of MTD for Income Tax, bookkeepers become “supporting agents” who manage regular updates and ensure data accuracy. Accountants retain oversight as “main agents” and handle the final year end filings.

Here’s how the individual duties might split out for an average client:

Bookkeeper	Accountant
Capture and categorise transactions	Analyse data trends
Maintain real time records	Offer strategic tax advice
Submit quarterly updates	Finalise year end filings

This isn’t theory. This division of labour is already being tested in the MTD for Income Tax beta programme. And it works.

Communication: Your competitive advantage

With MTD for Income Tax, your most significant threat to efficiency isn’t the complexity of the rules. It’s a breakdown in communication between bookkeepers and accountants.

One of the biggest blockers is miscommunication—not capability.

Ami Copeland

Too often, bookkeepers and accountants do the following:

• Work separately.
• Relay messages through the client.
• Duplicate work or chase the same missing info.

Fix that now. Own your process. Set expectations and communicate them directly.

Here’s a checklist for smoother collaboration:

• Use shared cloud software like Sage for Accountants and Sage Accounting to ensure everyone sees the same data and can access it in real time.

• Agree on naming conventions to reduce categorisation, reconciliation, and reporting errors.

• Define reconciliation ownership early—know who’s responsible for what, before deadlines hit.

• Automate nudges and reminders using tools like Sage Copilot to stay on track without manual chasing.

• Set communication roles—agree who contacts the client, when, and how, to avoid duplication, confusion, or irritation.

• Build in pre-submission review checklists so nothing slips through the cracks before quarterly updates.

• Hold quick quarterly syncs (even just 15 minutes) to align on data, progress, and upcoming actions.

Client relationships: Lead your way

Managing MTD for Income Tax is about taking control of your client base, your pricing, and your value.

This is your chance to focus on the clients who value you—and move away from those who don’t.

Ami Copeland

Now’s the time to decide:

• Who do you want to work with?
• What services do you want to offer?
• What boundaries will you set?

Here are examples of how you might want to set up your services.

Do it for me—fully-managed bookkeeping

What you could include:

• Complete transaction capture and categorisation.
• Daily bank reconciliation and receipt management.
• Real time data maintenance and error correction.
• Preparing and organising quarterly data for MTD for Income Tax submissions.
• Client communication about record-keeping requirements and deadlines.
• Liaison with accountants to ensure submission-ready data.

Typical clients for this level of service are busy sole traders, landlords with multiple properties, and clients who prefer a hands-off approach.

The pricing model is a higher monthly retainer reflecting comprehensive daily involvement.

The value proposition is complete peace of mind on day-to-day finances, with the accountant receiving clean data for submissions.

Do it with me—collaborative bookkeeping

What you could include:

• Initial transaction entry and categorisation support.
• Client reviews and approval of entries with your guidance.
• Joint monthly review meetings (virtual or in-person).
• Shared access to cloud accounting software with training.
• Basic financial reporting and cash flow insights via reporting tools.
• Quarterly data preparation meetings before accountant submissions.

Typical clients for this service could be engaged small business owners who want some control, and growing businesses building internal capability.

The pricing model is a mid-tier monthly fee plus consultation time.

The value proposition is cost savings with maintained oversight, gradual skill transfer, while supporting the accountant workflow.

Show me how—guidance and setup

What you could include:

• Initial software setup and chart of accounts configuration.
• Training sessions on transaction recording and categorisation.
• Template creation for common transactions and reconciliation processes.
• Monthly check-ins to review data quality before quarterly submissions.
• On demand support for complex transactions or reconciliation issues.
• Preparation guidance for accountant meetings.

Typical clients might be tech-savvy sole traders, small businesses with admin capacity, and cost-conscious clients.

The pricing model is built around setup fee, plus lower ongoing support retainer.

The value proposition is built around maximum cost efficiency—the client builds internal competence while maintaining professional support for accountant collaboration.

You don’t have to work twice as hard to make twice the profit. Focus on higher-value services.

Ami Copeland

Start now: Join the MTD for Income Tax beta and test your model

Another message from Accountex London 2025 was that participation equals preparation.

If you’re not testing, how will you prepare your workflows, pricing, or tech setup?

Ami Copeland

If you want to be ready for MTD for Income Tax by April 2026, don’t wait for the deadline. Start testing now.

The current beta programme is your best chance to build confidence and refine your model before MTD for Income Tax becomes mandatory.

Use it to:

• Refine joint workflows: establish clear roles between accountants and bookkeepers—who updates what, and when.

• Stress test communication: trial real time syncs, shared software, and AI tools like Sage Copilot.

• Adjust pricing and responsibilities: use real workload data to shape new service tiers or retainer models.

See what breaks, and fix it early, Remember: clients in the beta won’t face penalties. So, this is your safe space to get it right.

Final thoughts: What to do now

Bookkeepers are essential to MTD for Income Tax.

You’ve always been doing the work. Now the system recognises and values it.

With clear boundaries, the right tech, and stronger collaboration, MTD for Income Tax becomes your platform to elevate your small business services.

There’s a beautiful middle ground where the client is the biggest winner. That’s the sweet spot of collaboration.

Ami Copeland

Here’s what to do next:

• Review your client list—who values your work?
• Define your service model—full-service, collaborative, or training-led?
• Talk to your accountant partners—don’t wait until 2026.
• Join the MTD beta—test workflows and pricing now.
• Visit the Sage Advice MTD hub for checklists, templates, and support.