Key takeaways
- MTD for Income Tax reaches sole traders and landlords with qualifying income over £30,000 from April 2027 and over £20,000 from April 2028, so most practices will move clients across in waves.
- Per-client software fees grow with every client you sign up, which squeezes margins on low-fee sole trader and landlord work.
- Per-practice pricing fixes the software cost, so adding the next client does not add to the bill.
- Segment your client list by MTD start date, VAT status and record-keeping habits before you choose software or set fees.
- HMRC requires an agent services account and a client authorisation before you can sign clients up, and you can act as a main or supporting agent.
For most practices, Making Tax Digital for Income Tax is not a single project. It is a rolling migration. The first clients joined on 6 April 2026, more join in April 2027 and a larger group follows in April 2028. Each one needs digital records, four quarterly updates and a tax return filed through compatible software.
That raises a practical question for every firm: who pays for the software, and how does that cost behave as your client list grows? This guide sets out a step-by-step approach to moving your whole client list onto MTD, with a close look at software pricing models and how to run the numbers for your own practice.
Why per-client software pricing becomes a problem under MTD
Many accounting software products for accountants charge a monthly fee for each client. With a handful of VAT clients, that is manageable. MTD for Income Tax changes the scale. Sole trader and landlord clients have often paid modest annual fees for a Self Assessment return, and now each one needs software all year round.
The pressure comes from two directions. If you pass the software cost on, low-complexity clients may push back on a higher bill for what they see as the same service. If you absorb it, your margin on each client shrinks. Either way, the cost rises with every client you sign up, so the most successful migration is also the most expensive.
Per-practice pricing turns that around. You pay one predictable fee for your client base, and the cost per client falls as more of your list moves across. It makes it easier to bring every in-scope client onto the same platform, rather than leaving the smallest ones on spreadsheets because the software does not pay its way.
Step 1: Segment your client list by MTD start date
Before choosing software or quoting new fees, sort your clients into groups. The first split is the MTD start date. HMRC bases it on qualifying income, which is the combined gross income from self-employment and property before expenses, as shown on the tax return for an earlier year. Clients over £50,000 in 2024 to 2025 started on 6 April 2026. Those over £30,000 in 2025 to 2026 start on 6 April 2027, and those over £20,000 in 2026 to 2027 start on 6 April 2028. HMRC’s agent toolkit sets out the full timetable.
Within each group, it helps to note three more things. First, whether the client is VAT registered, as this affects which software plan they need. Second, how they keep records today, whether that is software, spreadsheets, a shoebox of receipts or a notebook. Third, who will do the bookkeeping, whether the client keeps their own records and you review, or your practice does the lot. These details shape both your software choice and how you price the service. Our guide to who needs MTD includes worked examples you can share with clients who are unsure where they stand.
Step 2: Get your agent services account ready
To act for clients under MTD for Income Tax, HMRC says you need an agent services account, which is separate from the HMRC online services for agents account you may use for Self Assessment. You also need authorisation from each client before you can sign them up.
If you already act for clients under Self Assessment, you can add those existing authorisations to your agent services account. HMRC treats you as the main agent for those clients, but adding authorisations does not sign anyone up. You, or the client, still need to complete the sign-up for each person and authorise the software.
It is also worth deciding which role you will take for each client. HMRC allows a client to have one main agent and one or more supporting agents for MTD for Income Tax. A main agent can manage almost everything, including submitting the tax return. A supporting agent has more limited access. They can help with digital records and quarterly updates but cannot submit the tax return. HMRC’s guidance on main and supporting agents sets out exactly who can do what. This matters where a bookkeeper handles the quarterly work and another firm prepares the year-end return.
Step 3: Choose MTD software for accountants that fits your client mix
Once you know the shape of your client list, you can judge software on more than price. Here is what to look for.
One view of every client
Good accounting software for accountants should show every client in one dashboard, with who has filed, who is behind and what is due next. With four quarterly deadlines each year (7 August, 7 November, 7 February and 7 May for clients on standard update periods), a clear view of deadlines across the whole practice saves a lot of checking.
MTD for Income Tax and VAT in one place
Many clients will need both. If the same software handles MTD for VAT returns and MTD for Income Tax, you avoid running two systems for one client. Check that the software is on HMRC’s list for both.
Client access that suits each client
Some clients will keep their own records and want simple software they can use on their phone. Others will hand everything to you. The software should support both without extra cost each time a client logs in.
Practice features and support
Accountancy practice software is more than a filing tool. Look at onboarding help, bulk tools, software for your own practice books, training and how quickly you can reach a person who knows the product. Some firms also use dedicated accounting practice management software for jobs, time and billing. If you do, check how well your client accounting software fits alongside it.
A pricing model that scales
Compare per-client and per-practice pricing against your own numbers, not a sample practice. The right model depends on how many clients you have, how many are VAT registered and how quickly your list will grow as the thresholds fall.
Step 4: Run the numbers on your own client list
To show how pricing models play out, here are some worked examples using the Clear Books unlimited MTD pricing for practices. At the time of writing, practices can pay £3 a month per non-VAT client or £9 a month per VAT-registered client, move to £50 a month for unlimited non-VAT clients, or pay £100 a month for the whole practice, with VAT-registered clients included. Check the live page for current prices before you budget.
A practice with 30 non-VAT clients and 10 VAT-registered clients would pay £180 a month on a per-client basis. Moving the non-VAT clients to the £50 unlimited option, plus £9 for each VAT client, brings that to £140. The whole-practice plan covers everything for £100.
The break-even points are easy to work out. The £50 unlimited option costs less than paying per client once you have 17 non-VAT clients. If you already pay £50 for unlimited non-VAT clients, the whole-practice plan becomes the cheaper route once you have six or more VAT-registered clients. A small practice with eight non-VAT clients would simply pay per client, at £24 a month. A practice with 120 MTD clients on the whole-practice plan pays the same £100 as one with 40, which brings the software cost per client below £1 a month.
Step 5: Onboard clients in waves
Moving a whole client list at once is rarely practical. Working in waves keeps the workload steady and lets you refine your process on the first group. A simple plan looks like this:
- Start with clients already in scope. Anyone mandated from April 2026 needs digital records and quarterly updates now, even though there are no penalty points for late quarterly updates in the 2026 to 2027 tax year.
- Prepare the April 2027 group next. Sign them up, connect their software and agree who keeps the records before the new tax year starts.
- Bring records in digitally. Import existing data rather than retyping it, and set up categories in line with the Self Assessment boxes from day one.
- Review the first quarterly update closely. It shows up gaps in records and categories while they are still easy to fix.
- Book the quarterly deadlines into your workflow. Plan reviews a few weeks ahead of each deadline rather than in the final days.
Step 6: Package and price your MTD service
With software costs fixed, you can price MTD on the work involved, not on what each client’s software costs. Many practices build their MTD service around who keeps the records. A review-only service suits clients who keep their own records in software and want you to check each quarterly update and handle the tax return. A full-service option suits clients who would rather hand everything over, including bookkeeping.
Whichever model you choose, explain the change in plain terms. Clients are more likely to accept a quarterly fee when they can see what they get each quarter, such as a check of their figures, an estimate of their tax bill and a reminder before each deadline. Our guide for accountants and bookkeepers on MTD covers more of the practical detail.
How Clear Books supports accountants and bookkeepers
Clear Books has been building UK accounting software since 2008. It is on HMRC’s recognised software list for both MTD for VAT and MTD for Income Tax, and is registered with the Financial Conduct Authority (firm reference 843585). You can read more on our HMRC recognised software page.
The partner programme is free to join, with no minimum number of clients and no commission on referrals. Active partners get a free practice licence for their own books, a single client portal showing every client in one dashboard, a named account manager and a UK partner support line. There are free weekly webinars on MTD and Clear Books, and clients get between 15% and 35% off list price, depending on your partner tier, for the lifetime of their subscription. If you are moving clients from another accounting system, you can bring their data into Clear Books, and the UK partner team can help you get set up.
For MTD for Income Tax, the unlimited pricing means your software bill stays the same however many clients you bring across. Clients below the threshold, or those who keep their own records, can also use the free MTD plans for sole traders and landlords. The accountants full feature list sets out the practice tools in detail.
Ready to bring your whole client list across? Explore the partner programme.
Frequently asked questions
What is the best MTD software for accountants?
The best option is HMRC recognised for MTD for Income Tax and VAT, shows every client in one place, suits both clients who keep their own records and those you manage fully, and has a pricing model that works for your client mix. See how the Clear Books partner programme is set up for practices.
Is per-practice pricing cheaper than per-client pricing?
It depends on the size and mix of your client list. Per-client pricing suits a small list, while per-practice pricing usually works out cheaper as the list grows. You can compare both models with your own numbers on the unlimited MTD pricing page.
Do I need an agent services account for MTD for Income Tax?
Yes. HMRC requires an agent services account and an authorisation from each client before you can sign them up. You can add existing Self Assessment authorisations to it. Our guide for accountants and bookkeepers explains the wider process.
Can my clients keep using spreadsheets?
They can, if their spreadsheets are digitally linked to bridging software. For many clients, moving to full MTD software is simpler and avoids broken links. Our guide to MTD bridging software compares the two routes.
Can I file VAT returns and MTD for Income Tax in the same software?
Yes, if the software is recognised for both. Clear Books covers MTD for VAT and MTD for Income Tax, and the whole-practice plan includes VAT-registered clients. Read more in our guide to MTD for VAT.
What about clients below the MTD threshold?
They do not need to use MTD for Income Tax yet, but moving them early can make the switch smoother when the threshold falls. Clients can use the free MTD software plans to start keeping digital records at no cost.
