MTD for Income Tax: how to manage difficult client conversations

As April 2026 fast approaches, Making Tax Digital (MTD) for Income Tax is no longer a distant plan, but a new reality for many UK practices and their clients. Here’s how to lead difficult MTD conversations and transition your clients to a digital-first world with confidence.

1. Acknowledge the digital friction 

Switching from paper or spreadsheets to accounting software isn’t just a change in workflow, it’s an emotional shift. For many clients, their current method represents familiarity, and stepping away from it can feel like giving up control. In this sense, digitalisation may feel like a loss rather than a gain. 

The solution: Validate their feelings, but take some time to explain the benefits. While it may be tempting to lead with “HMRC says you have to”, try reframing the conversation: “I know you value your paper system, but MTD gives you a real-time view of your cashflow that paper simply can’t provide.”

2. The “accountant’s fault” fallacy

One of the most common reactions to MTD for Income Tax is defensiveness. Clients can feel targeted by new regulations, leading to the familiar “Why are you doing this to me?” conversation. It’s important to shift that perspective early. Compliance isn’t a burden you are imposing - it’s a standard you’re helping them navigate and make the most of.

The solution: Be the guide, not the gatekeeper. You are their protector against penalties, rather than the person creating extra work. Accounting software can provide a safety net and add peace of mind thanks to automation. When chatting with your clients, explain how improved visibility can also open the door to better decision-making and new opportunities for growth.

3. Making clients take action 

Educating your clients is the foundation, but implementation is the finish line. Many clients understand the new rules yet struggle to change their day-to-day habits. 

Here are three key steps to encourage your clients to take action. 

Step 1: Prepare your clients

Help your clients familiarise themselves with accounting software by addressing any concerns about digital tools. A quick chat with you can reassure them of how easy and intuitive it is to use.

Step 2: Digitalise your clients

If your clients use FreeAgent, focus on three essential milestones:

1. Connecting bank feeds

2. Downloading the mobile app

3. Creating a first invoice.

These steps will give your clients first-hand experience with using accounting software. It’s also a chance to see how straightforward digital tools can be.

Step 3: Help your clients develop good habits

Once onboarding is complete, encourage consistent use of the software to build familiarity and confidence. 

Many FreeAgent practices find that encouraging regular app use significantly reduces future training time. 

4. Segmenting and matching the client to the right tech 

Getting clients to embrace digitalisation might be easier said than done. A “one-size-fits-all” software approach rarely works. Your client base likely ranges from tech-savvy landlords to traditional sole traders.

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.

An example of how to segment and match your clients to the right software is dividing them up by digital readiness.

  • Level 1 (paper/manual): needs simple, mobile-first tools with receipt-scanning features, similar to FreeAgent’s Smart Capture
  • Level 2 (spreadsheets): needs a user-friendly and easy-to-use software transition
  • Level 3 (already digital): needs advanced features or advisory-level insights

However, that’s not the only way to do it! For additional strategies on how to segment your clients for MTD for Income Tax, check out our guide.

5. Honest and direct communication 

If managing the human side of MTD feels harder than the technical side, you aren’t alone. From ‘spreadsheet-only’ landlords to evolving compliance timelines, the barriers to a smooth transition are real. Finding the right words and the right moment to reach out is one of the main challenges practices are facing at the moment.

No matter your preferred method of communication, there are a few things to keep in mind.

  • Provide a clear roadmap: transparency is your best tool for reducing client friction. Be clear about the “what” and the “when”, including any immediate next steps. You might find our ready-to-use MTD email templates useful!
  • Lead with value: highlight how real-time data and digital accuracy can actually save your clients money in the long run. To lower the barrier to entry, consider “early bird” incentives like complimentary software training for those who migrate ahead of the curve.
  • Set clear expectations: update your Letters of Engagement now to reflect the digital reality. 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.

But that’s not all! Check out our guide for more tips on how to communicate with your clients about the MTD for Income Tax transition. 

Need help preparing for MTD for Income Tax? Let’s chat! Schedule a free action plan meeting with one of our experts and get a plan tailored specifically for your practice.

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