Strategically Package Your MTD for IT Services

Making Tax Digital (MTD) for Income Tax Self-Assessment (ITSA) is no longer a distant concept—it’s a fundamental shift in the accounting landscape. The move from one annual tax return to five submissions per client is more than a compliance hurdle; it’s a catalyst for change.

For forward-thinking firms, this is a golden opportunity to move beyond the traditional compliance model. Instead of absorbing the significant extra workload, you can repackage your offerings, redefine your value, and strengthen your client relationships.

Here’s how to turn the MTD challenge into a strategic advantage for your practice.

Why You Can’t Afford to Ignore Service Packaging

The shift to quarterly reporting means more touchpoints, more data, and more time per client. Simply adding these tasks to your existing fee structure is a recipe for eroding your profit margins.

Strategic service packaging is the answer. It allows you to:

  • Avoid Scope Creep: Clearly defined packages ensure clients know exactly what they are paying for, preventing confusion and requests for unpaid work.
  • Demonstrate Clear Value: Instead of billing for more “compliance hours,” you’re offering a structured solution that provides tangible benefits.
  • Build Trust Through Transparency: Proactively explaining why your services are changing and how the new packages are designed to help clients navigate MTD builds confidence and strengthens your partnership.

Building Your MTD Service Tiers: From Essentials to Advisory

A one-size-fits-all approach won’t work. Your clients have different needs, varying levels of digital readiness, and unique business complexities. Building flexible service tiers allows you to cater to everyone effectively.

Consider a three-tiered structure:

1. MTD Essentials (The Compliance Foundation)
This core bundle is for the client who needs to meet their obligations with minimal fuss. It should include:

  • Client Onboarding: Setting up software and ensuring they understand the new process.
  • Quarterly Submissions: Managing the four quarterly updates required by HMRC.
  • Ongoing Compliance Support: Basic support for MTD-related queries.

2. MTD Business (The Visibility Package)
This tier is for clients who want to leverage their data for better insights. It includes everything in Essentials, plus:

  • Digital Record-Keeping Tools: Providing and supporting the software they need.
  • Quarterly Performance Snapshots: A brief report with key metrics after each submission.
  • Proactive Tax Planning: Basic advice on tax efficiency based on quarterly data.

3. MTD Strategic (The Advisory Partnership)
This premium package is for clients seeking a true financial partner. It includes everything in Business, plus:

  • Monthly Management Reports: Deeper analysis of financial performance.
  • Regular Strategy Check-ins: Proactive meetings to discuss business goals and financial health.
  • Full-Service Advisory: Cash flow forecasting, budgeting, and strategic guidance.

By giving your packages defined names and focusing on outcomes—like “improved visibility” or “strategic growth”—you transform them from a list of tasks into powerful solutions.

The Engine Behind Your Packages: The Role of Technology

Offering these structured services efficiently is impossible if you’re bogged down by manual processes. The promise of MTD—greater efficiency and reduced errors—can only be realised with a strong technology foundation.

This is where automation becomes your firm’s most valuable asset. The right software platform should:

  • Eliminate Manual Data Entry: Your team’s time is too valuable to be spent keying in data from bills, receipts, and bank statements. A document-led system like Acxite extracts this data automatically, preparing transactions in the background.
  • Streamline Submissions: Your MTD software should handle quarterly submissions seamlessly, allowing you to manage your entire client portfolio without disruption.
  • Free Your Team for Higher-Value Work: When technology handles the compliance burden, your team can focus on what truly matters: analysing data, advising clients, and building relationships.

MTD for ITSA isn’t just a new set of rules; it’s a mandate to modernise. By strategically packaging your services and underpinning them with powerful automation, you can turn a regulatory obligation into your firm’s greatest driver of growth and a competitive advantage that attracts and retains high-value clients.

Ready to build MTD services that scale? Discover how Acxite’s automation-first approach can power your new packages and eliminate the burden of manual data entry. Learn More about Acxite