Digital readiness checklist

Segment the client base

Sort clients into waves from filed returns HMRC will use: over £50,000 for April 2026, over £30,000 for April 2027, over £20,000 for April 2028, plus exempt or deferred cases. Do not rely on turnover shortcuts — use qualifying income (gross self-employment and property before expenses).

Decide the software pattern

Choose software before sign-up. Confirm support for all relevant income sources, your preferred accounting period, multi-agent working if needed, and the year-end tax return as well as quarterly updates.

If clients use spreadsheets, bridging software remains valid when digitally linked. Once a digital record has been submitted in a quarterly update, it must not be moved by retyping or copy and paste. Linked spreadsheet cells, CSV import/export, automated transfer and API transfer can count as digital links.

Roles, engagement and team prep

Quarterly updates should reflect real records — not placeholders where that would be factually wrong. If more than one firm is involved, define who reviews what and when.

Update engagement letters for MTD scope: digital record keeping, who submits quarterly updates, who handles corrections, and who signs off the year-end tax return. ACCA and the Joint Professional Bodies Engagement Letters Working Party have published MTD-specific schedules firms can adopt.

Ensure the ASA is in place, legacy authorisations are linked, staff have individual logins, and at least two administrators are ready for MFA. Use voluntary sign-up and low-risk trial clients to practise workflows before volume arrives.

First-year deadlines (2026/27 wave)

First quarterly update deadlines: 7 August 2026, 7 November 2026, 7 February 2027, 7 May 2027. Use these operationally for review cycles and client communications, not only as compliance dates.

Related: Client sign-up process · Managing multiple agents