Have you ever felt that sometimes, big changes feel more like threats than opportunities? Ami Copeland, CEO of the Institute of Certified Bookkeepers (ICB), sees things differently, especially when it comes to the upcoming wave of Making Tax Digital (MTD) for Income Tax.
You might recognise the worry: How am I going to cope with four submissions per client instead of one? But Ami flips this on its head: rather than a burden, MTD for Income Tax is the biggest opportunity bookkeepers and accountants have seen in years.
What exactly is Making Tax Digital for Income Tax?
At its core, MTD for Income Tax isn’t just another compliance headache, it’s a catalyst for change in bookkeeping practices. It’s digital record-keeping, quarterly updates to HMRC, and a big push towards using approved software solutions.
Ami, CEO of the Institute of Certified Bookkeepers (ICB), reminded everyone that this isn’t new territory. Most of you already do your January Self-Assessment digitally, so, what’s really changing? The difference is the frequency and the rigour of digital records, and that’s where bookkeepers can become essential allies.
Why MTD Means Bookkeeping Matters More
Accountants running once-a-year tax return businesses will soon face a crossroads. But instead of despairing, Ami sees this as a golden moment for bookkeepers to step forward:
“HMRC is effectively mandating bookkeeping. This isn’t about tax, it’s about the power of bookkeeping.”
From April 2026, sole traders and landlords with an income above £50,000 must adopt digital record-keeping. Just a year later, this threshold lowers to £30,000, pulling even more businesses into the digital sphere. Ami highlights the stark reality: nearly half of those affected initially aren’t VAT-registered and likely have never used accounting software. Who will help these clients navigate digital bookkeeping?
That’s where you come in.
Collaboration: Your New Competitive Advantage
Ami emphasised a key theme: collaboration. Accountants who usually scramble to collect data once a year will now rely heavily on regular, accurate bookkeeping. This shift opens doors for collaboration or, as Ami puts it, “co-firming”, a term borrowed from colleagues across the pond, meaning accountants and bookkeepers working in close partnership.
Bookkeepers already know the drill, real-time, accurate data is the cornerstone of good business. But for accountants entrenched in annual reporting, this change might feel daunting. Ami’s advice?
“You’ve either got to work like a bookkeeper or work with one.”
Practical Steps for Embracing MTD for Income Tax:
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Segment your client base:
Identify who will be impacted first and tailor your communication. Start conversations early to manage expectations. -
Evaluate your offering:
This isn’t just compliance; it’s a chance to reassess your business model. Do you want to become more advisory, proactive, and engaged? -
Collaborate or outsource:
Consider partnering with a bookkeeper to ensure smooth transitions. Utilise their expertise in systemisation and tech adoption to ease your burden. -
Systemise your workflows:
Bookkeepers are pros at systemisation. Adopt standardised workflows to ensure efficiency, especially when managing multiple quarterly submissions. -
Use technology strategically:
Choose HMRC-approved software that aligns with your firm’s needs and train your team to maximise its potential.
The Future is Collaboration
MTD for Income Tax might feel daunting, but Ami believes this legislative shift will dramatically elevate the role of bookkeepers within accounting practices. Accountants and bookkeepers will no longer be distant relatives; instead, they’ll form close partnerships where bookkeeping excellence ensures accountancy success.
If you’re unsure how to adapt your practice or who to collaborate with, organisations like ICB are stepping up to support. They’re not just advocating the value of bookkeeping, they’re actively growing talent pools, offering guidance, and equipping both accountants and bookkeepers for this digital-first future.
