{"id":198431,"date":"2025-04-22T09:59:26","date_gmt":"2025-04-22T09:59:26","guid":{"rendered":"https:\/\/peraltafinancing.com\/accounting\/survey-reveals-that-making-tax-digital-is-both-the-biggest-challenge-and-opportunity-for-accountants-in-2025\/"},"modified":"2025-04-22T09:59:26","modified_gmt":"2025-04-22T09:59:26","slug":"survey-reveals-that-making-tax-digital-is-both-the-biggest-challenge-and-opportunity-for-accountants-in-2025","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=198431","title":{"rendered":"Survey Reveals That Making Tax Digital Is Both the Biggest Challenge and Opportunity for Accountants in 2025"},"content":{"rendered":"<p> <br \/>\n<\/p>\n<div>\n<p><span style=\"font-weight: 400;\">Making Tax Digital (MTD) for income tax is set to redefine the accountancy sector in the UK this year \u2013 not just as a regulatory requirement but as both the profession\u2019s most pressing challenge and its greatest opportunity.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A recent <\/span><a href=\"https:\/\/www.accountex.co.uk\/london\/\"><span style=\"font-weight: 400;\">Accountex<\/span><\/a><span style=\"font-weight: 400;\"> survey has highlighted how accountants view the digitalisation of tax and Self-Assessment, revealing mixed reactions as they prepare for a more client-focused way of working.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Commenting on the survey, Caroline Hobden, Portfolio Event Director of <\/span><a href=\"https:\/\/www.accountex.co.uk\/\"><span style=\"font-weight: 400;\">Accountex<\/span><\/a><span style=\"font-weight: 400;\"> said, \u201cMTD ranking so highly as both a challenge and an opportunity highlights how distinct this transition period will be for many in the industry.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cAs we have seen with MTD for VAT, preparation is key, and accounting professionals at all levels should be spending this year researching the software available and understanding how their role will change with digitalisation.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cOne of the most effective ways to do this is to engage with people in the industry. Whether that\u2019s in person or online, adapting to a new way of working will be a smoother process by learning from and sharing insights with others.\u201d<\/span><\/p>\n<h2 id=\"the-biggest-challenges-of-2025\" class=\"rb-heading-index-0\"><b>The Biggest Challenges of 2025<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">When accountants were asked about the most significant challenges facing the industry in 2025, <\/span><b>MTD topped the list by far, with 81.70%<\/b><span style=\"font-weight: 400;\"> citing it as their primary concern. The top five issues highlighted were:<\/span><\/p>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">MTD (81.70%)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Tax changes (44.44%)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">AI adoption (38.56%)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Client servicing (33.33%)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Recruitment (20.26%)<\/span><\/li>\n<\/ol>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-12282 size-full\" src=\"https:\/\/www.accountex.co.uk\/insight\/wp-content\/uploads\/sites\/4\/2025\/04\/Biggest-challenges-for-2025.png\" alt=\"\" width=\"1024\" height=\"768\" srcset=\"https:\/\/www.accountex.co.uk\/insight\/wp-content\/uploads\/sites\/4\/2025\/04\/Biggest-challenges-for-2025.png 1024w, https:\/\/www.accountex.co.uk\/insight\/wp-content\/uploads\/sites\/4\/2025\/04\/Biggest-challenges-for-2025-300x225.png 300w, https:\/\/www.accountex.co.uk\/insight\/wp-content\/uploads\/sites\/4\/2025\/04\/Biggest-challenges-for-2025-768x576.png 768w, https:\/\/www.accountex.co.uk\/insight\/wp-content\/uploads\/sites\/4\/2025\/04\/Biggest-challenges-for-2025-860x645.png 860w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><\/p>\n<p><span style=\"font-weight: 400;\">Eriona Bajrakutaj, founder of <\/span><a href=\"https:\/\/voltdigital.ai\/\"><span style=\"font-weight: 400;\">Volt Digital Transformation<\/span><\/a><span style=\"font-weight: 400;\">, explains that MTD implementation will require further communication with clients, potentially requiring firms to hire more accountants:<\/span><\/p>\n<p><i><span style=\"font-weight: 400;\">\u201cIf you do not implement digital systems, you will need the extra capacity because we\u2019re now going to see clients five times a year. I think managing client expectations will be a big challenge because it means clients will need to reframe their business model to ensure it can report in a digital format.<\/span><\/i><\/p>\n<p><i><span style=\"font-weight: 400;\">But clients can actually be trained quite easily. The biggest push back to be aware of is from your team. If they don\u2019t want to go on the digital journey, it will hinder how fast you get there and how well you can service your clients. Try to involve your teams during every step of the process so they can see what you\u2019re trying to achieve and know their opinion matters as you transition.\u201d<\/span><\/i><\/p>\n<h2 id=\"the-biggest-opportunities-of-2025\" class=\"rb-heading-index-1\"><b>The Biggest Opportunities of 2025<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Despite the challenges, <\/span><b>79.08% of accountants also see MTD as a huge opportunity<\/b><span style=\"font-weight: 400;\">, with the following top five opportunities identified:\u00a0<\/span><\/p>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">MTD (79.08%)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">AI (46.41%)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Tax changes (46.41%)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Client servicing (41.83%)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">New business acquisition (21.57%)<\/span><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">MTD requires more frequent communication, meaning that accountants will have greater visibility into clients\u2019 businesses, paving the way for upselling, deeper client relationships, and broader advisory services.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">While digitalisation and MTD will require a new way of working for accountants and bookkeepers, many are already seeing AI as a means to streamline processes, improve client servicing and win new business.<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-12283 size-full\" src=\"https:\/\/www.accountex.co.uk\/insight\/wp-content\/uploads\/sites\/4\/2025\/04\/Biggest-opportunities-2025.png\" alt=\"\" width=\"1024\" height=\"768\" srcset=\"https:\/\/www.accountex.co.uk\/insight\/wp-content\/uploads\/sites\/4\/2025\/04\/Biggest-opportunities-2025.png 1024w, https:\/\/www.accountex.co.uk\/insight\/wp-content\/uploads\/sites\/4\/2025\/04\/Biggest-opportunities-2025-300x225.png 300w, https:\/\/www.accountex.co.uk\/insight\/wp-content\/uploads\/sites\/4\/2025\/04\/Biggest-opportunities-2025-768x576.png 768w, https:\/\/www.accountex.co.uk\/insight\/wp-content\/uploads\/sites\/4\/2025\/04\/Biggest-opportunities-2025-860x645.png 860w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><\/p>\n<p>\u00a0<\/p>\n<h2 id=\"1-in-3-accountants-not-yet-prepared-for-mtd\" class=\"rb-heading-index-2\"><b>1 in 3 Accountants Not Yet Prepared for MTD<\/b><\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-12286 size-full\" src=\"https:\/\/www.accountex.co.uk\/insight\/wp-content\/uploads\/sites\/4\/2025\/04\/Prepared-for-MTD.png\" alt=\"\" width=\"1024\" height=\"768\" srcset=\"https:\/\/www.accountex.co.uk\/insight\/wp-content\/uploads\/sites\/4\/2025\/04\/Prepared-for-MTD.png 1024w, https:\/\/www.accountex.co.uk\/insight\/wp-content\/uploads\/sites\/4\/2025\/04\/Prepared-for-MTD-300x225.png 300w, https:\/\/www.accountex.co.uk\/insight\/wp-content\/uploads\/sites\/4\/2025\/04\/Prepared-for-MTD-768x576.png 768w, https:\/\/www.accountex.co.uk\/insight\/wp-content\/uploads\/sites\/4\/2025\/04\/Prepared-for-MTD-860x645.png 860w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><\/p>\n<p><span style=\"font-weight: 400;\">A significant <\/span><b>34% of accountants say they are unprepared<\/b><span style=\"font-weight: 400;\"> for MTD for income tax, which comes into effect in April 2026 for sole traders and landlords with qualifying income from self-employment and property over \u00a350,000. Despite previous mandates in 2019 and 2022 seeing 90%+ of businesses prepare adequately, many agents (<\/span><b>11.15%)\u00a0 are still using the HMRC platform to file<\/b><span style=\"font-weight: 400;\"> returns, which will no longer be an option for SA returns over the \u00a350,000 threshold in 2026.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Yet the benefits of MTD are already being realised, according to figures from HMRC:<\/span><\/p>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">45% of businesses report saving time (up to 40 hours per year)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">40% say it improved their operations and finances<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">20% say it pushed them towards digital transformation.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The <\/span><b>total estimated value of time saved is between \u00a3603m and \u00a3915m<\/b><span style=\"font-weight: 400;\"> annually.<\/span><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">Clive Barnett, External Readiness Lead, HMRC:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cJoining our MTD for Income Tax testing phase now gives businesses and agents hands-on experience before April 2026. Participants can prepare for this significant change with benefits such as dedicated support and penalty-free quarterly submissions.\u201d<\/span><\/p>\n<p><i><span style=\"font-weight: 400;\">\u201cHMRC is making sure our marketing, communications and product launches all align to ensure there\u2019s a package of support around during the testing period and the long-term adoption to help people make the right choices for their business and clients.\u201d<\/span><\/i><\/p>\n<p><span style=\"font-weight: 400;\">The key changes under MTD for Income Tax include digital record-keeping, using MTD-compatible software and submitting quarterly summaries of income and expenses to HMRC.<\/span><\/p>\n<h2 id=\"20-of-clients-affected-8211-education-is-important\" class=\"rb-heading-index-3\"><b>20% of Clients Affected \u2013 Education is Important<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Many accountants believe that the latest MTD threshold will <\/span><b>only impact 20% of their clients<\/b><span style=\"font-weight: 400;\">, but that number will rise significantly with further phases in April 2027 for those with qualifying income over \u00a330,000 and in April 2028 for those with qualifying income of over \u00a320,000.<\/span><\/p>\n<h3 id=\"what-percentage-of-your-clients-will-be-affected-by-the-mtd-deadline-in-2026\" class=\"rb-heading-index-4\"><b>What percentage of your clients will be affected by the MTD deadline in 2026?<\/b><\/h3>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-12284 size-full\" src=\"https:\/\/www.accountex.co.uk\/insight\/wp-content\/uploads\/sites\/4\/2025\/04\/Clients-affected.png\" alt=\"\" width=\"1024\" height=\"768\" srcset=\"https:\/\/www.accountex.co.uk\/insight\/wp-content\/uploads\/sites\/4\/2025\/04\/Clients-affected.png 1024w, https:\/\/www.accountex.co.uk\/insight\/wp-content\/uploads\/sites\/4\/2025\/04\/Clients-affected-300x225.png 300w, https:\/\/www.accountex.co.uk\/insight\/wp-content\/uploads\/sites\/4\/2025\/04\/Clients-affected-768x576.png 768w, https:\/\/www.accountex.co.uk\/insight\/wp-content\/uploads\/sites\/4\/2025\/04\/Clients-affected-860x645.png 860w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><\/p>\n<h3 id=\"what-percentage-of-your-clients-have-you-spoken-to-about-mtd-in-the-last-six-months\" class=\"rb-heading-index-5\"><b>What percentage of your clients have you spoken to about MTD in the last six months?<\/b><\/h3>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-12285 size-full\" src=\"https:\/\/www.accountex.co.uk\/insight\/wp-content\/uploads\/sites\/4\/2025\/04\/Clients-spoken-to.png\" alt=\"\" width=\"1024\" height=\"768\" srcset=\"https:\/\/www.accountex.co.uk\/insight\/wp-content\/uploads\/sites\/4\/2025\/04\/Clients-spoken-to.png 1024w, https:\/\/www.accountex.co.uk\/insight\/wp-content\/uploads\/sites\/4\/2025\/04\/Clients-spoken-to-300x225.png 300w, https:\/\/www.accountex.co.uk\/insight\/wp-content\/uploads\/sites\/4\/2025\/04\/Clients-spoken-to-768x576.png 768w, https:\/\/www.accountex.co.uk\/insight\/wp-content\/uploads\/sites\/4\/2025\/04\/Clients-spoken-to-860x645.png 860w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><\/p>\n<p><span style=\"font-weight: 400;\">Craig Ogilvie, HMRC, Director of Making Tax Digital said:<\/span><\/p>\n<p><i><span style=\"font-weight: 400;\">\u201cWith April 2026 on the horizon, agents should now be reviewing if any of their clients have income over \u00a350,000 from self-employment or property. We are issuing letters to customers we believe will be mandated, outlining specific requirements and timelines. We urge those who meet the mandation criteria to join our testing programme on GOV.UK now to help shape the final service and make your transition smoother.\u201d<\/span><\/i><\/p>\n<h2 id=\"mtd-8211-rising-to-the-challenge\" class=\"rb-heading-index-6\"><b>MTD \u2013 Rising to the Challenge<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">While <\/span><b>81.70% of accountants see it as a challenge<\/b><span style=\"font-weight: 400;\">, <\/span><b>79.08% also welcome the growth MTD can bring<\/b><span style=\"font-weight: 400;\">. With MTD and digitalisation as a wider project promising better data, stronger client relationships, and the potential for new revenue streams, there will be countless ways for accountants to engage with the tools in the next 12 months.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, the challenge is not just about software or compliance, but a culture change around the digitalisation of tax and Self-Assessment. With early preparation, client education, and internal team buy-in, accountancy firms can position themselves to thrive in the digital shift.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For more information on Making Tax Digital for Income Tax, including how to sign up for the testing programme and access free guides, visit GOV.UK and search \u201cMTD for Income Tax\u201d.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Meet the teams from HMRC, Sage and Volt Digital Transformation at Accountex London, taking place at Excel London on the 14-15 May, 2025, where MTD, digitalisation and AI are expected to be widely-discussed topics.<\/span><\/p>\n<p><a href=\"https:\/\/eventdata.uk\/Visitor\/AccountexLondon2025.aspx?TrackingCode=ACX423\"><b>You can register for your free ticket here.<\/b><\/a><span style=\"font-weight: 400;\">\u00a0<\/span><\/p>\n<\/div>\n\n","protected":false},"excerpt":{"rendered":"<p>Making Tax Digital (MTD) for income tax is set to redefine the accountancy sector in the UK this year \u2013 not just as a regulatory requirement but as both the profession\u2019s most pressing challenge and its greatest opportunity.\u00a0 A recent Accountex survey has highlighted how accountants view the digitalisation of tax and Self-Assessment, revealing mixed [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":198432,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11759],"tags":[12717,13380,4027,824,2167,16186,13640,7344,7356],"dealstore":[],"offerexpiration":[],"class_list":["post-198431","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-accounting","tag-accountants","tag-biggest","tag-challenge","tag-digital","tag-making","tag-opportunity","tag-reveals","tag-survey","tag-tax"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.4 - 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