MTD Client Readiness Checklist for 2026: What Every Small Practice Needs

Making Tax Digital for Income Tax (MTD ITSA) is now live. Since 6 April 2026, sole traders and landlords with qualifying income over £50,000 must keep digital records and submit quarterly updates to HMRC.

For small practices managing 50–200 clients, the challenge is not understanding MTD — it is tracking which clients are ready and which are not.

Who Needs to Comply Now?

**From April 2026 (NOW):** Sole traders and landlords with total qualifying income over £50,000 in the 2024/25 tax year.

**From April 2027:** Those with income over £30,000.

**From April 2028:** Those with income over £20,000.

The Client Readiness Checklist

For each client, you need to confirm:

1. Income Threshold Assessment - [ ] Total self-employment income calculated - [ ] Total property income calculated - [ ] Combined income checked against current threshold (£50k) - [ ] Client notified of their MTD obligation status

2. Digital Record Keeping - [ ] Client has MTD-compatible software (Xero, QuickBooks, FreeAgent, etc.) - [ ] Software is connected to HMRC - [ ] Client understands quarterly submission requirements - [ ] Digital records are being maintained (not paper)

3. Agent Authorisation - [ ] Agent authorisation submitted to HMRC for MTD ITSA - [ ] Authorisation confirmed and active - [ ] Client's Government Gateway credentials available if needed

4. Missing Information - [ ] Bank statements accessible digitally - [ ] Property income records complete - [ ] Expense receipts digitised - [ ] Mileage logs maintained - [ ] Capital allowances documented

5. Quarterly Submission Schedule - [ ] Q1 submission deadline noted (7 August 2026 for first cohort, covering 6 Apr–5 Jul) - [ ] Q2 submission deadline noted (7 November 2026, covering 6 Jul–5 Oct) - [ ] Q3 submission deadline noted (7 February 2027, covering 6 Oct–5 Jan) - [ ] Q4 submission deadline noted (7 May 2027, covering 6 Jan–5 Apr) - [ ] Final declaration deadline noted (31 January 2028)

The Problem With Spreadsheets

Most small practices track this in Excel or Google Sheets. This works for 10 clients. It breaks down at 50+.

Common problems: - Spreadsheets go stale within days - No automated reminders when deadlines approach - No way for clients to self-serve (upload documents) - No audit trail of what was chased and when - Multiple team members editing creates conflicts

A Better Approach

Instead of maintaining a spreadsheet, consider a dedicated tracking tool that:

1. **Shows status at a glance** — which clients are ready, at risk, or overdue
2. **Sends automated reminders** — so you are not manually chasing every week
3. **Provides upload links** — clients can submit documents without email attachments
4. **Tracks history** — see when reminders were sent and documents received

Getting Started

If you manage a small UK practice and want to stop the manual chase, PracticeNudge offers a free pilot programme specifically for this problem. No tax filing, no HMRC submissions — just clear tracking of who is ready and who needs a nudge.

Join the free pilot →