The countdown to April 2026 is officially on, and with Making Tax Digital for Income Tax (MTD for Income Tax) just over a year away, accountants and bookkeepers have a prime opportunity to re-engage their clients. Preparing for MTD is about more than ticking compliance boxes – it’s a chance to review your client relationships, ensure they’re ready for the transition, and set fair prices for your services.
In this blog, we’ll explore how you can use MTD for Income Tax as an opportunity to strengthen your client relationships and increase profitability while leveraging tools like GoProposal to make the process seamless.
The MTD timeline and why preparation is key
The April 2026 deadline for MTD for Income Tax applies to self-employed individuals and landlords with total qualifying income above £50,000, with those whose total qualifying income is above £30,000 being brought into scope 12 months later in April 2027. With digital records and quarterly updates transmitted by approved software becoming mandatory, it’s crucial to ensure your clients are onboarded and ready ahead of time.
While HMRC has previously delayed the rollout of MTD for Income Tax, complacency is a risk you shouldn’t be taking. The transition requires more than simply moving clients onto software; you’ll need to ensure they understand their new obligations and are comfortable with the tools they’ll be using. By preparing early, you’ll reduce stress for you and your clients and improve client satisfaction by demonstrating your proactive approach.
Client re-engagement: How to communicate and reprice effectively
Re-engaging clients ahead of MTD for Income Tax is your chance to reset expectations and ensure you’re being fairly compensated for the value you bring. Here’s how to do it effectively:
1. Audit your client base
Identify which clients will fall under the upcoming MTD for Income Tax mandation dates and assess their readiness. Are they already using compliant accounting software? If not, what support will they need to transition, will you need to offer more bookkeeping support or switch them to a more suitable platform?
2. Communicate the changes clearly
Use plain, jargon-free language to explain MTD for Income Tax and how it affects your clients. Regular updates – through emails, webinars, or one-to-one calls – can help clients feel informed and supported.
3. Reprice services fairly
As compliance requirements increase, so does the time and effort required to support your clients. This is the right moment to review your pricing and ensure it reflects the additional work involved in meeting MTD for Income Tax regulations. Be transparent with your clients about why you’re repricing – it’s about providing value while ensuring your business remains sustainable.
4. Update engagement letters
Updated engagement letters are essential for outlining new services and pricing structures. They protect you and your clients by ensuring a clear understanding of what’s included and the fees involved.
Leveraging GoProposal
When it comes to repricing and re-engaging clients, GoProposal is a game-changer. Designed with accountants and bookkeepers in mind, it streamlines processes, enhances transparency, and ensures you’re always charging the right amount for your services.
1. Ease of repricing clients
GoProposal allows you to adjust prices across your entire client base or for specific services with just a few clicks. This flexibility means you can respond quickly to changing demands, such as the additional workload from MTD compliance.
2. Smart engagement letters
Keeping engagement letters up to date can feel like a constant battle, but GoProposal simplifies this with smart engagement letters that automatically align with updates from your professional bodies. These documents protect your practice and ensure your clients have clear visibility of key dates and expectations.
3. Quarterly updates for accuracy
GoProposal is updated quarterly, ensuring that your pricing and engagement letters always reflect the latest guidance from professional bodies. This keeps you compliant and removes the hassle of manual updates.
By using GoProposal, you can eliminate stress from client management and focus on what matters most – growing your practice and supporting your clients.
Turning MTD compliance into an opportunity
MTD for Income Tax doesn’t have to be a burden. By re-engaging your clients and repricing your services now, you can turn compliance into an opportunity for growth. The key is to get ready for MTD – creating a timeline, communicating clearly, and using tools like GoProposal to streamline your processes.