Making Tax Digital is here - and many accountancy firms are facing huge pressures

Date:
Thu, 02 Apr 2026 09:02:45 +0000

Description:
MTD is right around the corner, but between 50% and 69% of companies still haven't digitalized their books.

FULL STORY ======================================================================Copy link Facebook X Whatsapp Reddit Pinterest Flipboard Threads Email Share this article 0 Join the conversation Follow us Add us as a preferred source on Google Newsletter Tech Radar Pro Are you a pro? Subscribe to our newsletter Sign up to the TechRadar Pro newsletter to get all the top news, opinion, features and guidance your business needs to succeed! Become a Member in Seconds Unlock instant access to exclusive member features. Contact me with news and offers from other Future brands Receive email from us on behalf of our trusted partners or sponsors By submitting your information you agree to the Terms & Conditions and Privacy Policy and are aged 16 or over. You are
now subscribed Your newsletter sign-up was successful Join the club Get full access to premium articles, exclusive features and a growing list of member rewards. Explore An account already exists for this email address, please log in. Subscribe to our newsletter Businesses acknowledge MTD's benefits, they just don't have the time or money to implement it Data is the biggest barrier at the moment, and quarterly reporting could accentuate that Bookkeeping software can be combined with other business tools for cost efficiency With the HMRC's Making Tax Digital (MTD) rules set to be enforced more broadly
this month, new research from Wolters Kluwer claims the challenge is no
longer understanding what's required of businesses it's actually executing MTD at scale.

The data states anywhere between 50% and 69% of income tax clients still haven't even digitalized their books, and there's been no sign of improvement as we edge closer to the deadline. Being that MTD mandates quarterly reporting, Wolters Kluwer worries the first submissions will expose some serious weaknesses in many SMBs' tech stacks and data quality. Article continues below You may like A lot of UK firms still aren't remotely ready
for Making Tax Digital How to choose your perfect MTD accounting software Worried about getting your tax sorted? HSBC and Sage team up ahead of Making Tax Digital deadlines Many businesses still aren't ready for MTD Although readiness is low, confidence in MTD's goals are pretty high 69% agree it
will benefit their business and 56% even see positive impacts on their clients.

"The challenge is no longer whether firms understand whats coming, but
whether they can execute at scale, particularly when so many income tax clients are still not digitally enabled," Associate Director for Product Management Mohammed Sidat explained.

At the moment, the key challenge is of course the foundation data quality
and reconciliation (47%). Client onboarding and migration (44%), client communication (43%) and software integration (43%) are also high on the list.

Wolters Kluwer also notes generational differences, with younger clients aged under 45 seen as most prepared. On the flip side, there's still a preference for paper by 47% of the respondents. Are you a pro? Subscribe to our newsletter Sign up to the TechRadar Pro newsletter to get all the top news, opinion, features and guidance your business needs to succeed! Contact me
with news and offers from other Future brands Receive email from us on behalf of our trusted partners or sponsors By submitting your information you agree to the Terms & Conditions and Privacy Policy and are aged 16 or over.

Looking ahead into the new era of MTD mandates, the report suggests there are clear commercial opportunities for the financial and software sectors.
Bundles compliance and bookkeeping software, workflow automation, and digital migration/onboarding are all services that could be in higher demand with the change.

As for those affected by MTD, the report reminds business owners to remember about the time savings, bookkeeping efficiency and forecasting benefits that come along with MTD, highlighting its longer-term advantages. With 45% also concerned about the costs, businesses are reminded that combining MTD
software with other essential business tools might be more effective than they'd thought. Follow TechRadar on Google News and add us as a preferred source to get our expert news, reviews, and opinion in your feeds. Make sure to click the Follow button!

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Link to news story: https://www.techradar.com/pro/making-tax-digital-is-here-and-many-accountancy- firms-are-facing-huge-pressures


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