If you’re an accountant working with landlords or sole traders, April 2026 marks a major milestone. Making Tax Digital for Income Tax (MTD IT) will become a legal requirement for clients earning over £50,000 a year.
They’ll need to keep digital records, use compatible software, send quarterly updates, and complete a final declaration. By 2027, this includes those earning over £30,000, and the threshold is planned to drop to £20,000 by 2028.
It is really a big shift. And it’s not just about compliance, it’s about how your firm works, how your clients rely on you, and how prepared you are for what’s next.
What does MTD IT mean for accountants?
In the past, your clients typically sent everything once a year. You filed their tax return, and that was that.
Now? It’s more hands-on.
You’ll have to:
- Keep in touch more often
- Help clients record income and expenses digitally
- Make sure they meet four deadlines every year
- Handle more admin tasks on top of what you’re already doing
It’s a lot, and if you’re already busy, this might feel overwhelming.
Feeling the pressure of MTD IT changes? You’re not alone
At Stellaripe, we work with accountants across the UK. Most of them are saying the same thing:
“We want to help our clients, but we don’t have the time.”
“Some clients still use paper — how do we make that digital?”
“We’d love to grow, but MTD is making things harder.”
This change is huge. And feeling stressed about it is completely normal.
That’s why we’re here — to help you through it.
What are the key MTD deadlines?
Your clients will need to send a quarterly update to HMRC, and the deadline is always one month after each quarter ends.
Here’s what that looks like:
|
Quarter |
Period Covered |
Deadline |
|
Q1 |
6 April – 5 July |
5 August |
|
Q2 |
6 July – 5 October |
5 November |
|
Q3 |
6 October – 5 January |
5 February |
|
Q4 |
6 January – 5 April |
5 May |
Meeting these deadlines is critical. Each missed quarterly update or final declaration equals one penalty point. Reaching 4 points triggers a £200 fixed penalty, and additional missed deadlines result in further £200 fines.
Points remain valid for two years unless the taxpayer achieves 12 months of perfect compliance and catches up on missing filings to reset to zero.
So, staying on track is important, and outsourcing can help.
What does HMRC now expect from your clients?
The way clients report their income to HMRC is changing, and it’s becoming more detailed, more frequent, and fully digital.
Here’s a quick breakdown:
- Clients must use HMRC-recognised software to keep their financial records and submit them.
- Every quarter, they need to report their actual income and expenses, not just estimates.
- If they have more than one income stream, like running a business and renting out a property, they’ll need to send separate updates for each.
- At the end of the year, they’ll need to submit a final summary to confirm everything is accurate, including any reliefs or adjustments.
This new process is more hands-on than the old once-a-year tax return. And for firms managing many clients, staying compliant could quickly become overwhelming — unless you plan ahead and get the right support.
What steps should you take right now?
Waiting until 2026 to get started could cause a mad rush. Instead, take small steps now. Here’s how:
Step 1: Check which clients are affected
Look at your client list. Who earned over £50,000 last year from self-employment or property? Start there.
Step 2: Talk to clients early
Don’t wait for HMRC to send letters. Let clients know what’s coming. The sooner they hear it from you, the better.
Step 3: Get them using software
Encourage clients to switch to MTD-friendly software now. Or, better yet, let Stellaripe do the bookkeeping for them. Of course, we use MTD-compliance software already.
Step 4: Automate what you can
Use tools to send reminders, collect records, and chase missing info. It saves time and keeps clients on track.
Step 5: Let Stellaripe handle the heavy work
From quarterly updates to year-end summaries, we can manage the process so you don’t have to.
What are the benefits of starting early?
Some accountants may think, “Why bother until 2026?”
Here’s why that’s risky:
- You can sign clients up now voluntarily — it’s a great way to test the process early
- You’ll know which clients need more help
- You’ll avoid the stress of last-minute changes
- You’ll have more time to choose the right software and update your workflows
- You’ll show clients that you’re proactive and prepared
And let’s be honest — that peace of mind? Worth everything.
Need a trusted partner to manage your MTD?
Instead of trying to do everything yourself, you can outsource the day-to-day MTD work to Stellaripe. We act like an extended part of your team.
Here’s what we take care of:
|
MTD tasks |
How does Stellaripe help? |
|
Organising income/expense data |
We handle digital bookkeeping in line with MTD rules |
|
Quarterly updates to HMRC |
We check and submit the correct figures on time |
|
Year-end tax summary |
We prepare the final declaration for you to review |
|
Client reminders |
We help automate follow-ups so nothing gets missed |
No hiring, no stress, no chasing paperwork at the last minute. Just solid support, every step of the way.
How does Stellaripe make MTD IT simple?
We’ve helped many UK accountants transition to digital bookkeeping and reporting, and MTD IT is just another step on that journey.
What makes Stellaripe different?
- We understand UK tax rules inside and out.
- We work with your systems — no need to change everything.
- We’re reliable, affordable, and trained in MTD processes.
- We let you stay focused on advising clients and growing your firm.
You don’t have to do everything yourself. You just have to choose the right partner.
Accounting practices prioritise data security because they handle sensitive client information. Outsourcing companies like Stellaripe understand this concern and prioritise data protection at their facilities, which includes implementing robust measures to safeguard data.
Conclusion
MTD IT is a big deal, but it doesn’t have to be a big problem. The best way to stay ahead is to start now, communicate with your clients, and ask for help where it matters.
At Stellaripe, we’re not just here to tick boxes. We’re here to support your growth, protect your time, and help you deliver top-tier service without the overwhelm.
From digital record-keeping to quarterly updates and final declarations, our expert outsourcing team is ready to support your firm through the MTD IT transition.
Contact us today to get started and make MTD IT simple, sustainable, and stress-free for you and your clients.
