The first quarterly deadline for Making Tax Digital for Income Tax has come and gone. 

For accountants and bookkeepers, 7 August was more than another compliance deadline. It was the first real test of how MTD would work in practice, not just technically, but operationally. 

After months of preparation, firms have now had the opportunity to see what happens when hundreds of clients need to maintain digital records, provide information more regularly and complete quarterly updates within the same reporting cycle. 

And one lesson is becoming increasingly difficult to ignore: 

MTD isn’t just changing how tax is submitted. It’s changing how practices work with their clients. 

The real challenge may not be the submission 

The mechanics of submitting a quarterly update are only one part of the MTD process. 

The bigger operational challenge for many practices is everything that happens around the submission. 

Clients need to understand what information they need to provide. Records need to be maintained throughout the year. Missing information needs to be chased. Teams need to monitor progress across multiple clients. 

And then there is the communication. 

“Have you sent my records?” 

“Do you still need anything from me?” 

“Has my quarterly update been submitted?” 

These are perfectly reasonable questions from clients, but when they are repeated across hundreds of client relationships, they create another layer of administrative work for practices that are already operating under capacity pressures. 

The first deadline has therefore provided an important opportunity to look beyond compliance and consider a broader question: 

How can practices make the entire MTD workflow more efficient? 

From annual information gathering to continuous collaboration 

One of the biggest changes brought by MTD is the move away from an annual cycle of information gathering. 

Traditionally, a client might send their records to their accountant once a year. Under MTD, that relationship becomes much more continuous. 

Records need to be maintained digitally and quarterly updates mean practices have more regular touchpoints with clients. 

That creates an opportunity. 

Instead of viewing this simply as more work, practices can look at how technology can turn more frequent interaction into better collaboration. 

If clients can capture receipts and invoices as they receive them, for example, information doesn’t need to accumulate in a drawer or inbox until someone remembers to send it. 

If clients can stay connected with their accountant through a mobile app, communication doesn’t have to rely entirely on emails and phone calls. 

The objective is not to eliminate communication. It is to make communication part of the workflow rather than something that sits around it. 

Why client collaboration matters 

The first MTD deadline has also highlighted something that can be easy to overlook when discussing accounting technology. 

The client is part of the workflow. 

An accounting practice can have sophisticated software and well-designed internal processes, but if clients are still sending photographs of receipts by email, forgetting to provide bank statements or waiting until the last minute to submit records, the process will inevitably involve manual intervention. 

This is where client-facing technology becomes increasingly important. 

Tools such as mobile apps can give clients a simple way to participate in the accounting process themselves. 

For example, Capium 365 allows clients to capture and send receipts, invoices and bank statements in real time, helping accountants collect information as part of the normal course of business rather than relying on periodic requests. 

It can also help keep clients connected with their accountant and informed about their submissions. 

For practices, that can mean less time spent chasing information and more visibility over what has been received. 

For clients, it can mean a simpler way to interact with their accountant. 

That’s an important distinction. 

Good technology shouldn’t simply make the accountant’s job easier. It should make the client’s role easier too. 

The next question: is your practice organised for MTD? 

Client collaboration is only one side of the equation. 

The first deadline has also given practices a chance to examine what happens internally. 

• Where are client tasks being tracked?
• How easily can teams see what needs to be done?
• Are workflows consistent?
• Can managers see which clients are ready for submission and which still require attention?
• And how much information is being moved manually between different systems?

These questions become increasingly important as the number of clients affected by MTD grows. 

A process that works perfectly well for 20 clients can become considerably more difficult to manage when it needs to be repeated across 200 or 500. 

Scale exposes inefficiency. 

This is why practice management is becoming more closely connected to the MTD conversation. 

The challenge isn’t simply having software that can submit to HMRC. It is having processes that allow the practice to manage the work surrounding those submissions efficiently. 

The post-deadline review 

Perhaps one of the most useful exercises practices can undertake now is a simple post-deadline review. 

Rather than immediately moving on to the next deadline, take the time to ask: 

Where did we spend the most time? 

• Was it onboarding? 
• Client authorisations? 
• Collecting records? 
• Reconciling information? 
• Answering questions? 
• Chasing clients? 
• Preparing submissions? 
• Or managing the workflow internally? 

Then ask: 

Which of those tasks could be improved before the next quarterly update? 

The answers will be different for every practice. 

Some firms may need to start client onboarding earlier. Others may need to segment clients according to their needs and introduce different workflows. 

Some may need to invest more time in client education. 

Others may find that better client-facing technology could remove some of the repetitive chasing that absorbed time during the first quarter. 

There is no single solution for every firm. 

But there is value in identifying where the friction actually occurred. 

The opportunity beyond compliance 

There is a tendency to view MTD primarily through the lens of compliance. 

Understandably, the deadlines, rules and requirements have dominated much of the conversation. 

But there is another way to look at it. 

MTD is forcing practices to reconsider how information flows between clients, accountants, software and internal teams. 

That could ultimately create practices that are more connected and proactive. 

Regular digital records can provide accountants with better visibility. 

More frequent client interaction can create opportunities for advice. 

Automated workflows can reduce repetitive administration. 

And better practice management can make it easier for teams to understand what needs attention. 

The firms that benefit most may therefore be those that stop asking: 

“How do we comply with MTD?” 

and start asking: 

“How can MTD help us build a better way of working?” 

It’s time to get the practice organised 

The first deadline has given practices something they couldn’t get from a webinar, guidance document or software demonstration: 

real-world experience. 

Now is the time to use it. 

Review the processes that caused friction. Look at where clients needed the most support. Identify the tasks that consumed the most time and consider whether technology could remove some of that administrative burden. 

For some practices, that may mean improving client collaboration. 

For others, it may mean strengthening practice management. 

For many, it will be a combination of both. 

The next quarterly deadline will arrive with another opportunity to improve. 

The goal shouldn’t simply be to get through it. 

It should be to make it easier than the first one. 

A more connected approach to MTD 

Capium is helping practices bring more of the MTD workflow together, from digital record keeping and quarterly submissions to client collaboration and practice management. 

Capium 365 gives clients a simple way to capture and send financial records from their mobile device, helping accountants reduce the need for manual chasing and keep information flowing throughout the year. 

Capium Practice Management helps practices organise clients, workflows and day-to-day activity, while Capium MTD for Income Tax supports the digital record-keeping and quarterly submission process. 

For practices reviewing their technology stack after the first MTD deadline, bringing these elements together could be an opportunity to create a more connected workflow. 

Get your practice ready for the next phase 

To help practices strengthen their MTD setup, Capium is currently offering: 

Get 5 Capium 365 licences, MTD for Income Tax FREE, plus 50% off Practice Management for one year. 

The offer is available until 30 September 2026. 

Speak to Capium to find out more 

The first deadline was the test. The next one is the opportunity to do it better.

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