There’s loads of confusion out there about Making Tax Digital for Income Tax. Let’s cut through it.
Here’s what’s true, what’s rubbish – and what actually matters for you and your business.
Be sure to head over to our Making Tax Digital hub, full of guides, software reviews, important dates and more.
❌ Myth 1: “This is just a software sales ploy.”
📢 Reality: It’s an HMRC thing.
MTD is a government initiative – not something dreamed up by software companies. The goal is to modernise the tax system so it’s digital, accurate, and easier to manage. Software just helps you get there.
❌ Myth 2: “It means four times more work.”
📆 Reality: It spreads the load.
Yes, quarterly updates are new – but they replace the one big tax return scramble in January. Done right, MTD means fewer late nights and less chaos at year-end.
❌ Myth 3: “Only accountants should handle everything.”
🤝 Reality: It’s a team effort.
Modern software lets clients log their own expenses, track income, and keep records tidy – while accountants oversee, guide, and step in when needed.
❌ Myth 4: “There’s no real benefit for clients.”
🔍 Reality: Real-time visibility = better decisions.
Seeing up-to-date income and expenses means fewer surprises, more control, and no last-minute panic. Plus, you’ll know what tax is coming – before HMRC asks for it.
❌ Myth 5: “MTD will damage client relationships.”
💬 Reality: More touchpoints = stronger relationships.
Quarterly updates mean you’ll check in more often, offer proactive advice, and show your value all year – not just in January.
❌ Myth 6: “This’ll ruin my accountant’s pricing model.”
💸 Reality: Time = money.
If there’s more work involved, pricing can (and should) reflect that. As long as you explain the value clearly, most clients will get it.
❌ Myth 7: “There’s no free software out there.”
🏦 Reality: There is – if you know where to look.
Clients with a business current account from NatWest, RBS, Ulster or Mettle can get FreeAgent for free. Easy to set up, no catch.
❌ Myth 8: “Spreadsheets are just as good.”
🧾 Reality: They’re not.
Spreadsheets can be fiddly, error-prone and don’t meet GDPR standards. MTD software is safer, smarter, and saves hours.
❌ Myth 9: “You can’t share data between systems.”
🔄 Reality: You can.
MTD software handles business and property income. Other stuff (like PAYE or dividends) gets added when you finalise your return. All in one place, all connected.
❌ Myth 10: “There’s no way I’ll be ready in time.”
🚀 Reality: You’ve got time – and help.
April 2026 might sound close, but it’s manageable. We’re already helping clients prep now, so they’re confident and set up well ahead of time.
🎯 TL;DR?
MTD for Income Tax means:
- Using proper software 💻
- Sending quarterly updates 📤
- Submitting a final declaration once a year ✅
And if you’ve got us in your corner? You’re golden.
🔗 Need help getting sorted?
Head to our jargon-free MTD hub for everything you need:
Or just give us a shout – we’ll break it all down for you. No stress, no pressure, no shame (even if your current “filing system” is a Tesco bag).
