Skip to main content Insights from FreeAgent’s MTD consultations: surprises, wins and opportunities for your practice
The MTD countdown is well and truly on. In just under a year, the first quarterly submission deadline for Making Tax Digital (MTD) for Income Tax will be here - and April 2026 will mark the start of a fundamental shift in how many sole traders and landlords manage their tax obligations.
At FreeAgent, we’ve spent the past few months deep in conversation with accountants and bookkeepers about what this change means for their practices. From unexpected challenges to emerging opportunities, these consultations have surfaced a rich mix of insights - and we’re sharing them with you now to help you prepare, plan and stay ahead of the curve. Let’s dive in.
MTD for Income Tax: three common concerns
Many accountants and bookkeepers have told us they still feel uncertain about the road ahead. Here are the three areas of concern that come up frequently:
1. MTD for Income Tax thresholds and deadlines
Since we began our consultations, uncertainty around the MTD thresholds and timelines has been a recurring theme. While the phased approach and introduction of thresholds has been mostly well-received, some practices still feel unsure about how they will tackle the transition with their different client segments.
Some practitioners feel comfortable with the £50,000 threshold set for April 2026 as it will likely affect only a small proportion of their existing client base.
However, the £30,000 threshold for 2027 is already triggering some anxiety in firms, as it will bring a lot more clients into scope - and more work to juggle.
2. Client engagement and education
Another sticking point is educating clients about the coming changes. Practices are finding it particularly difficult to reach low-fee or non-digital clients, especially those who only check in during Self Assessment season. These clients are typically the least prepared for MTD but often the most challenging to engage with about the changes.
3. Pricing
How much should you charge for quarterly MTD filing? When and how should you communicate the change to clients who are used to once-a-year check-ins? Pricing has been a major sticking point in our conversations, with many firms feeling extra pressure about how to manage MTD without undercharging or overwhelming clients.
In a recent webinar, Johann Goree (Engager.app), Suzannah Whelan (Sinclair Whelan Bookkeeping) and Amie Wilson (Harold Sharp) discussed strategies for a profitable MTD pricing structure. Watch the recording here.
Key misconceptions about MTD requirements
Even practitioners who feel broadly prepared for MTD often stumble over a few sneaky misconceptions.
The biggest? Not realising that clients with multiple income streams (like being a landlord and a sole trader) will need separate MTD filings for each income type. That’s right - more streams mean more submissions. For instance, if a client is both a sole trader and a landlord, they will need to submit separate quarterly updates for each income type. This could result in at least nine submissions a year.
“Even well-prepared practices are surprised by just how many layers there are to MTD for Income Tax. From handling multiple income types to juggling dual workflows during the transition year, it’s clear that success will depend on planning ahead and having the right systems in place.” - Danielle Lennox, FreeAgent’s Head of Practice Sales
Some firms have underestimated the complexity of managing two systems at once. During 2026, many practices will make quarterly MTD submissions for qualifying clients. At the same time, they’ll be starting work on 2025/26 Self Assessment filing for their other clients.
By understanding these more complex requirements of MTD for Income Tax, practices can put the right workflows and tools in place to prepare effectively and avoid becoming overstretched next year.
Emerging wins for forward-thinking firms
Yes, MTD brings challenges, but it also unlocks opportunities to level up your processes, achieve deeper client engagement and provide more valuable advisory work.
Forward-thinking practices are already making the most of the opportunity by re-evaluating how they work and what they do to support their clients.
Some firms are using MTD as a catalyst to fully digitalise their client base, not just those who fall within the initial scope of MTD for Income Tax. By moving everyone onto compatible systems like FreeAgent, practices are reducing admin, improving data quality and setting themselves up for long-term efficiency.
Other firms are seeing the benefits of more frequent check-ins with clients. In contrast to the traditional once-a-year rush, quarterly updates will create the opportunity for more regular conversations about business performance. This will give accountants a chance to offer timely advice and demonstrate their full value beyond simply supporting compliance.
And many are happy to discover that FreeAgent supports both quarterly updates and final declarations - offering a true end-to-end solution for MTD.
“There’s a growing sense of urgency, but also real opportunity. MTD isn’t just a compliance requirement - it’s a chance for practices to streamline, evolve, and deliver more value to their clients.” - Tony Stevenson, FreeAgent’s Senior Digital Enablement Manager
How FreeAgent can help you feel more confident
With the right tools and support, MTD doesn’t have to be overwhelming. Here’s how FreeAgent is helping accountants and bookkeepers prepare confidently over the next 12 months:
Providing an MTD-ready solution
FreeAgent is already MTD-ready. Our HMRC-recognised solution is fully MTD-compatible and HMRC’s pilot programme is open to our Partners.
Far more than an MTD solution, FreeAgent is also full of smart, easy-to-use features designed to make your practice more efficient, like AI-powered bank transaction explanations and bulk payroll.
Saving practices and clients money
For clients with a Mettle, NatWest, RBS or Ulster Bank account*, FreeAgent is free. This helps you keep MTD-related costs down for your practice while allowing you to navigate pricing conversations more easily with your clients.
When clients connect their bank account to FreeAgent, their transactions flow directly into the software, supporting efficient quarterly submissions with high-quality, accurate data.
Offering expert MTD support
Our MTD experts are dedicated to helping Partners benchmark, troubleshoot and prep their workflows. As a FreeAgent Partner, you can be confident about making the transition, no matter how many clients you have.
And with our comprehensive online resources, you’ll have access to our expert support whenever you need it. Here’s just some of our content to support your MTD preparations:
- Read our in-depth digital guide on MTD for Income Tax to learn more about what’s coming over the next 12 months and how to prepare.
- If you’re starting to think about how MTD will affect your practice, watch our recent webinars, which cover how to support your small business clients and pricing strategies for a new workflow.
- Ready to start a conversation with your clients? We’ve created a client guide that clearly and concisely lays out everything they need to know.
Wherever you are in your MTD journey, FreeAgent is here to support you with the tools, insight and guidance you need to move forward with confidence.
Ready to feel more confident about MTD?
With less than a year to go, now is the time to get MTD-ready. Book a free consultation with one of our MTD experts today.
*For as long as they retain their account or make Mettle their primary business account in FreeAgent. Optional add-ons may be chargeable.
