Why MDT IT is a great opportunity to win new clients
Making Tax Digital for Income Tax (MTD IT) calls for large numbers of businesses to digitise financial records for the first time — adding new complex requirements. Under this new mandate, businesses “must keep digital records and use third-party software to submit their tax returns to HM Revenue and Customs”. They will also need to keep digital records of their income and expenditure, and send a quarterly report and an end-of-year report using MTD compatible software.
From April 2026, MTD IT will require sole traders and landlords with annual income above £50,000 to report their income and expenses quarterly through compatible software. By 2027, the threshold will lower to £30,000 and the government will extend this to those with income above £20,000 by the end of this parliament.
At Dext, we know this new mandate presents complexities for accountants and bookkeepers needing to use HMRC-approved software, compiling quarterly reports and getting more regular information from clients. But, we also know that with the right technology foundations in place, this is a huge opportunity to grow your client base, expand advisory service offerings, and increase revenues.
In this blog, we’ll explore how you can get the most out of MDT IT and how tools like Dext Solo are critical for navigating the future of digital record-keeping.
The opportunity presented by MTD IT
This change opens the door to a vast pool of clients who will need the right tools and expertise to transition to digital record-keeping and ensure MDT IT compliance. For bookkeepers and accountants, this translates to millions of potential client relationships. In particular, sole traders and unincorporated landlords will need reliable financial advisors to help them face steep challenges under MDT IT:
- Effective compliance: Navigating new rules and ensuring data accuracy.
- Quarterly digital reporting: Staying on top of income and expense tracking on a regular basis.
- Limited technological familiarity: Adopting software solutions that are both user-friendly and MDT IT-compliant.
These challenges provide an entry point for professionals offering digital bookkeeping services and competency in HMRC-approved software. Moving to quarterly reporting creates an opportunity to shift away from annual billing and instead towards quarterly billing for a steady, predictable cash flow. This improves your ability to maintain steady cash flow as a bookkeeper or accountant throughout the year.
So, what further opportunities are on offer?
How MTD IT opens the door to value-added services
With MTD IT enforcing quarterly digital reporting, businesses need regular, up-to-date data to meet compliance requirements. The most effective way to achieve this is through real-time data collection powered by bookkeeping automation. This approach not only ensures compliance but also enables you to offer a range of tailored advisory services, leveraging the latest insights to support their clients’ financial success.
Real-time access to financial data allows you to deliver high-value services, including:
- Cash flow forecasting and management: Help clients maintain financial stability by offering clear projections and identifying potential shortfalls before they become critical issues.
- Tax planning and optimisation: Provide ongoing guidance to minimise tax liabilities throughout the year, avoiding the rush to prepare at year-end.
- Budgeting and expense tracking: Develop accurate, up-to-date budgets that reflect real-time financial performance, enabling better control over spending.
- Profitability analysis: Offer insights into which areas of the business are most profitable and where improvements can be made to maximise revenue.
- Scenario planning and financial modelling: Use current data to simulate potential business decisions, helping clients make informed choices about investments, expansions, or cost-cutting measures.
- Compliance reviews: Regularly review and ensure clients are meeting their financial and regulatory obligations, providing peace of mind.
By focusing on these areas, you can go beyond compliance work to become a trusted advisor, helping clients make smarter decisions that drive growth and resilience. This shift not only strengthens client relationships but also opens the door to new revenue opportunities and a more predictable cash flow for your practice. So, how can you achieve this?
If you want to learn more about client advisory services, check out our new article - Expanding Your Services as a Bookkeeper.
How to capture the MTD IT market
To fully capitalise on the opportunities MTD IT presents, you need to focus on two key areas: having the right technology to deliver real-time bookkeeping to match client demand, and a marketing outreach plan to attract new clients.
Technological capabilities: Dext Solo is your competitive edge
To deliver digital reporting on a regular basis under MTD IT, you need HMRC-compatible software. To efficiently meet the requirements of MTD IT, you need real-time capabilities — and this is where Dext Solo shines.
Built on the trusted Dext Prepare platform, Dext Solo is a record-keeping solution specifically designed for sole traders and landlords that qualify for MTD IT. With flexible reporting and submission methods, you can work with your clients to choose the model that works best for their needs. Dext Solo gives you back control and visibility on how to best support your self-employed and landlord clients, generating significant efficiencies through:
- Receipt scanning and auto-categorisation: Dext Solo saves clients time by automatically digitising and categorising expenses, providing you with accurate and up-to-date receipts at pace. This enables you to focus on adding value for your clients through additional services.
- Income tracking: Add and organise multiple income data sources seamlessly with a single account, ensuring your clients stay on top of their finances and can meet MTD IT demands of quarterly reporting
- Communication features: Built-in tools make it easy for you to collaborate with your clients and gather missing information.
- Tax reporting: Generate detailed tax reports to simplify the process of completing tax returns for you and your clients.
By using Dext Solo, you can deliver the real-time bookkeeping your clients need — making your life easier and enabling you to focus on providing advisory services in this digital-first tax era.
Marketing outreach: winning new clients
Once equipped with the right tools, the next step is growing your client base. Effective marketing is essential, and one of the best ways to win new clients is word-of-mouth referrals. Satisfied clients are the best advocates for your services, so prioritise delivering excellent service to your current clients to increase your chance of referral. Happy clients are usually happy to refer, so just ask!
Other strategies include:
- Networking: Attend local business events or industry conferences to build connections.
- Leveraging social media: Use platforms like LinkedIn to share insights about MTD IT and demonstrate your expertise, positioning you as a knowledgeable financial partner.
- Partnerships: Collaborate with complementary service providers to expand your reach.
Suggested reading: If you want to learn more about expanding your client base, check out our recent blog on the Top 10 ways to win new clients as an accountant or bookkeeper
Seize the MDT IT opportunity in 2025
The 2025/26 tax year is pivotal for businesses, meaning it’s pivotal for you.
Don’t get caught out with the 2026/27 reporting. Be proactive in connecting with clients now, onboarding them and establishing digital workflows well before the quarterly submissions in 2026. By offering tailored services backed by technology like Dext Solo, you can position yourself as an essential partner for navigating MDT IT.
Take advantage of the increased demand for real-time bookkeeping services ahead of others and save not only yourself from being overwhelmed as the deadline approaches, but your clients too. And we know that happy clients only mean good things for your business.
So, the time to act is now. Educate your clients, adopt the right tools, and prepare your practice for a thriving future under MTD IT.
