Making Tax Digital for Income Tax is set to become mandatory for many taxpayers from April 2026, but one in five accountants in the UK say they are not aware of the regulation
LONDON–(BUSINESS WIRE)–New research from Wolters Kluwer Tax & Accounting shows that the majority of accountants (68%) in the UK are feeling positive about the upcoming Making Tax Digital (MTD) for Income Tax regulations, which will require digital record keeping for many taxpayers. However, concerns still remain with two in five accountants (42%) saying that more than half of their clients are still not submitting tax data digitally or using accounting software.
“April 2026 is fast approaching, and both accountants and taxpayers need to be ready for the rollout of Making Tax Digital for Income Tax in the UK. Our research shows that accountants largely view MTD as a beneficial step forward—one that promises greater efficiency, improved financial forecasting, and valuable time savings,” said Bas Kniphorst, EVP and Managing Director Wolters Kluwer Tax & Accounting Europe.
“For many accounting firms and finance departments, identifying the right solution to support the transition to digital-first tax returns is the biggest challenge. Early preparation, ensuring the right technology and software is in place will be critical to guarantee a smooth transition—especially as a significant number of businesses still rely on non-digital records, such as paper receipts,” said Dorcas Mbwiti, Senior Product Manager, Wolters Kluwer Tax & Accounting UK.
From 6 April 2026, self-employed individuals such as sole traders and landlords with a gross income of over £50,000 – made during the 2024-25 tax year – will need to meet MTD requirements. There is broad awareness of the changes, with 80% of accountants reporting that they are aware of its existence and 71% saying that they understand the requirements well. However, almost one in five accountants (20%) say that they have not heard of the regulation. A similar proportion (22%) say that they ‘just about’ understand the requirements, with 7% saying they understand them ‘not well’ or ‘poorly.’
Finding the right software is the main concern for accountants
The majority of professionals working in accounting practices or finance departments (68%) believe that MTD is beneficial for their business, and more than half (58%) think it’s a positive for their clients. Only 5% think the regulation will have a negative impact on their business. More than half of those surveyed think that MTD will bring increased bookkeeping efficiency (66%), easier financial forecasting and data analysis (57%), and save time (51%). Many (50%) also think that clients will benefit from easier reporting and two in five (41%) see it as an opportunity to build relationships with clients. However, only 29% think that MTD will unlock new revenue streams for their practice.
When it comes to concerns around MTD, the main worry is finding the right software (50%) followed by non-compliance, penalties, or fines (42%). More than one in three are also concerned about clients being unhappy with change (37%) and not understanding the rules (34%).
Non-digitalised clients are a challenge for accountants
A challenge accountants are currently facing is onboarding clients to MTD when they don’t use digital methods, such as accounting software or digital records. Many UK accountants (42%) say that over half of their clients are currently non-digitalized, which means that they are still keeping non-digital records, such as paper receipts.
Accounting practices and finance departments are already making plans to overcome this hurdle. Two in five accountants (40%) say they will work with clients to help them adopt digital bookkeeping and onboard them to the right software. A third (31%) say they will offer hybrid services—digitalizing key items but still inputting some information manually—while some of them (19%) will continue manual or non-digital methods, submitting the information on their behalf of their customers. Very few (6%) will ask clients to self-train on the software and almost none (1%) will stop servicing non-digital clients or charge additional fees for manual handling.
Lack of tech literacy is a barrier to digital record keeping for clients
For clients, the main barriers for using digital record keeping according to UK accountants center around feeling comfortable using the technology. In fact, half of them quote clients’ lack of digital skills or tech literacy as an issue while a very similar proportion (47%) cited client resistance and cost of software or migration as other important barriers. Accountants also say that the complexity of their clients’ jobs (31%), worries about confidentiality (29%), time or resource constraints (22%) and regulatory and compatibility issues with client systems (17%) are an issue.
The future of tax returns is digital, and research shows that the tax and accounting industry is feeling positive about it. While there may be an initial set-up period on the horizon, it seems that professionals are excited for this new beginning of efficiencies through digitalization.
Notes to Editors
Wolters Kluwer surveyed 100 UK accountants from accounting firms and finance departments on the 12th August 2025 on a variety of questions related to how tax and accounting professionals across the UK are adapting to the upcoming Making Tax Digital (MTD) for Income Tax requirements, and what their view on the mandatory regulation is.
About Wolters Kluwer
Wolters Kluwer (EURONEXT: WKL) is a global leader in information, software solutions and services for professionals in healthcare; tax and accounting; financial and corporate compliance; legal and regulatory; corporate performance and ESG. We help our customers make critical decisions every day by providing expert solutions that combine deep domain knowledge with technology and services.
Wolters Kluwer reported 2024 annual revenues of €5.9 billion. The group serves customers in over 180 countries, maintains operations in over 40 countries, and employs approximately 21,600 people worldwide. The company is headquartered in Alphen aan den Rijn, the Netherlands.
For more information, visit www.wolterskluwer.com and follow us on LinkedIn, Facebook, YouTube and Instagram.
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Tax and Accounting
Wolters Kluwer Tax & Accounting
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Wolters Kluwer
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