Skip to main content Navigating MTD for Income Tax with your clients
How to segment your client base
With MTD for Income Tax on the horizon, your clients will need tailored support, not just with staying compliant but with getting set up using digital tools.
Getting clients to embrace digitalisation might be easier said than done. After all, no client is exactly the same. They come in all shapes and sizes, and how tech-savvy they are varies wildly. To effectively support them, you’ll need to understand their unique requirements and digital readiness and tailor your approach accordingly.
A good place to start is by splitting them into groups - segmenting your clients helps you identify what support they need and when. It allows you to focus your time and energy where it matters most - and avoid a last-minute scramble when the 2026 deadline rolls around.
Here’s how to approach it.
1. Gather essential client information
To segment effectively, you need up-to-date data. A quick client call, survey or CRM review can help you gather key details like:
- Business type (self-employed or landlord)
- Annual income bracket
- Current use of digital tools (e.g. accounting software, banking apps)
- Preferred communication method
The more accurate your data, the easier it is to group and prioritise clients.
“We did a lot of data mining work to understand the make-up of our landlord client base. We found that we had a very diverse set, ranging from accidental or reluctant landlords who had inherited property to professional landlords who generated income from several properties. We knew we needed to tackle these segments differently as they not only had different needs when it came to MTD, but different attitudes as well.”
- Nick Heawood-Ferriter, Digital Account Specialist at Wright Vigar
2. Identify who needs to comply
Once you’re confident your client information is up to date, identify the clients that will be directly affected by the April 2026 changes:
- Self-employed individuals with a qualifying income over £50,000.
- Landlords with a qualifying income over £50,000.
These clients will be the first cohort required to keep digital records and submit quarterly updates to HMRC via compatible software. Getting a clear view of this group gives you a solid starting point for your MTD strategy.
It’s also worth noting that the scope will expand in future:
- From April 2027: self-employed individuals with a qualifying income over £30,000
- From April 2028: self-employed individuals with a qualifying income over £20,000
These clients might not be affected just yet, but identifying them now means you can start preparing them early, offering gentle nudges, introducing new tools, or simply keeping them in the loop. That way, when their time comes, they’re not caught off guard (and neither are you!).
3. Assess digital readiness
Once you know who’s affected and when, the next step is working out how ready they are to transition - not every client will greet MTD for Income Tax with open arms! To support them effectively, you can segment further by placing clients into one of three broad categories:
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Digital natives: these clients might already using software, apps or cloud-based tools. They’ll be well-positioned to make the move - and might even enjoy the process.
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Willing but uncertain: these clients might be open to change but need guidance. They’ll send the occasional ‘just checking I’m doing this right’ email for reassurance and need some training along the way.
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Resistant to change: still fond of pen and paper and nervous about anything tech. These clients may need a more gradual approach - and extra patience.
You could even consider assigning clients a digital readiness score to help you prioritise. Someone already using cloud accounting, mobile apps and online banking? High score. A client who prefers paper invoices and keeps receipts in a biscuit tin? Lower score - and more support required.
“By understanding where each client stands, you can tailor your support and make the MTD transition feel less like a mandate. If you’d like help evaluating your client base, you can book a free MTD consultation with us and we’ll be happy to assist!”
- Tony Stevenson FCA, Senior Digital Enablement Manager at FreeAgent
4. Use your digital natives as a starting point
Within your MTD-affected group, start with the digitally confident ones. These clients can act as your test group, helping you:
- Trial your onboarding process
- Refine your messaging
- Build internal confidence
- Spot common client questions before rolling out the rest
Working with these clients first means smoother sailing as you move on to clients who need more support.
You could also consider working with clients who are already VAT-registered or who already use accounting software. These groups are likely to have a higher baseline understanding of digital record-keeping and can be transitioned more efficiently.
5. Tailor your rollout for each group
Once your initial rollout is underway, you’ll want to think about the kind of support each segment will need. A one-size-fits-all approach won’t cut it - so consider tailoring your plan depending on their confidence level:
- Digital natives: share guides and automated reminders
- Willing but uncertain: offer webinars, share articles or organise 1:1 check-ins
- Resistant to change: focus on personal outreach and step-by-step walkthroughs
By mapping out your support strategy in advance, you can manage your time more effectively and make sure no one gets left behind. We’ll dive deeper into effective communication strategies later in the guide, but first, let’s take a look at why it’s important to first team up with the right tech.
