Communicating with your clients

Communicating change to clients is rarely straightforward, especially when the rules are complex, the timelines are evolving, and each client has a different level of digital readiness. If you’ve been wondering how to get started, when to reach out, or even what formats to use, you’re not alone. Many accountants are facing the same challenges.

HMRC have started reaching out to taxpayers to let them know that MTD for Income Tax is coming, so it’s important to be proactive and demonstrate you’re on top of the new rules. Now is the time to take control of the conversation - this guide will show you how.

Before you reach out, make sure you’ve spent some time segmenting your clients into groups, as outlined earlier in the guide.

You might want to start with a general update to all of your sole trader and landlord clients. This will help raise awareness of MTD and catch anyone whose circumstances may have changed over the past year, making them newly eligible for the first threshold. From there, you can use your client segments to develop a targeted follow-up plan, sharing more specific details and next steps to help guide them through the process.

Whether you prefer a face-to-face chat, a phone call, or a well-crafted email, there are a few things to keep in mind.

• Give clarity. Communicate what’s changing and when, how this will affect the way you work together, and how you plan on supporting them during the transition.

• Lead with the positives. Instead of dwelling on the ‘burden’ of change, highlight the benefits: the potential for improved accuracy, real-time insights, and streamlined financial management. You could even sweeten the deal with incentives for early adopters, like discounted training or priority support. A positive spin can really ease any anxieties and make clients more open to the transition.

• Set clear expectations. Update your Letters of Engagement to reflect the changes brought about by MTD. Clearly outline how your services will evolve, what is expected from the client, and the associated timelines. Being proactive here will save you headaches down the line and build a stronger, more collaborative relationship.

You’re likely to get questions about next steps, so it’s important to consider how you’re going to build momentum and educate your clients beyond the introductory conversation. Investing in client education is an investment in your own practice. You could host workshops, webinars, or offer one-on-one training.

If that feels like a lot to manage, look to your software providers, who should be able to provide you with support. FreeAgent Partners have access to a whole library of resources - from detailed guides to introductory videos - that can be shared with clients to get them started. Plus, clients can get personalised training from our specialist team to help them get set up on the software and up to speed with MTD, which takes a big load off your shoulders.

We’ve also put together a series of handy email templates for you to get your initial MTD conversations started. Simply copy, paste and adjust to your specific needs.