Making Tax Digital – A revolution or just more admin?

Making Tax Digital (MTD) – the initiative that has every accountant either pulling their hair out or cautiously optimistic about the future.

On paper, it sounds great. A fully digital tax system that streamlines reporting, reduces errors and improves efficiency.

However, it often feels like HM Revenue & Customs (HMRC) is handing accountants a never-ending list of extra work, with tight deadlines and clunky compliance rules.

The promise vs the reality

MTD was pitched as a way to make tax reporting seamless.

Less paperwork, fewer mistakes, and more time for the ‘big picture’ stuff.

However, MTD comes with its own issues.

Clients struggling with new software, incomplete data, and the pressure of keeping up with new reporting rules are just a few of the problems.

Where accountants are feeling the strain

• More frequent reporting – Gone are the days of sorting it all at year-end. Now, accountants need to ensure quarterly updates are accurate, which means more client chasing and more real-time data handling.
• Software headaches – Sure, MTD-compatible software is essential. But when clients refuse to let go of their spreadsheets or pick the wrong tools, accountants are left cleaning up the mess.
• Data accuracy struggles – MTD was meant to reduce errors, but when clients input data incorrectly or don’t keep up with submissions, accountants are left fixing mistakes—sometimes more than before.
• Court case delays and policy uncertainty – MTD for Income Tax Self Assessment (ITSA) has already faced delays and tweaks. So while firms scramble to comply, there’s still uncertainty around what’s next.

So, is MTD a burden or an opportunity?

It depends. Some accountants see MTD as an opportunity to bring in better systems, improve client education, and future-proof their firm.

Others see it as yet another HMRC initiative that adds complexity without real benefit.

One thing for sure is having the right processes in place is key. That means software that does not just tick the compliance box, but makes accountants’ lives easier.

Our working paper software keeps everything in one place, makes tracking and reviewing tax submissions easier, and reduces errors before they become a problem.

Less chasing, fewer headaches, and more confidence in your reporting.

Ready to make MTD work for you, rather than against you? Get in touch today!