The first quarterly filing deadline under Making Tax Digital (MTD) for Income Tax has now passed, marking a major milestone in the UK's move towards a fully digital tax system.
For TaxAssist Accountants, the first mandatory reporting cycle has also provided valuable insight into how small businesses are adapting to the new requirements – and the importance of early preparation and professional support.
Across the TaxAssist network, 174 practices have submitted at least one quarterly update, covering 1,162 client businesses.
Data from Intuit QuickBooks shows that 1,385 quarterly updates have been submitted through the platform by TaxAssist firms, with 95% filed by practices on behalf of their clients.
Jo Nockels, Head of Practice Development at TaxAssist Accountants, said: "The first quarterly submission deadline is an important milestone for both accountants and the UK's small-business community. After years of discussion and preparation, businesses are now experiencing what Making Tax Digital looks like in practice.
"What the data from Intuit highlights, is that our clients are preferring a do-it-with-me or do-it-for me approach. The regulatory change itself has not been the biggest challenge. Establishing good habits around regular, robust, digital record keeping and the presence of bank feeds has been far more important."
The experience has also reinforced TaxAssist's view that MTD represents more than simply a change to tax reporting. More frequent financial information can create opportunities for accountants to have more regular conversations with clients and provide support throughout the year.
It could also change one of the most familiar features of the UK tax calendar: the traditional January rush. With clients maintaining records and providing information throughout the year, it will be interesting to see whether MTD reduces the volume of work traditionally concentrated around the Self-Assessment deadline. The impact of the first MTD cycle on the January workload will be closely watched by accountants as the new system becomes established.
Carl Burton, Intuit Franchise Key Account Manager, said: “The TaxAssist network's performance throughout the first MTD filing period has been extremely encouraging. What stands out is how effectively practices have guided clients through the process, with 95% of submissions being completed by firms on behalf of their clients.
"The data shows that once businesses are set up correctly, adoption follows quickly. Around 85% of clients who have completed the setup process have gone on to file successfully, highlighting the importance of preparation, advisor engagement and the right technology. This also shows the sound approach of getting clients to adopt digital record keeping before they’re mandated to."
TaxAssist invested heavily in preparing its network and clients for MTD throughout 2025 and 2026, including nationwide roadshows, technical webinars, client education campaigns and collaboration with software providers including Intuit QuickBooks, Xero, Dext and Hammock.
Attention is now turning to the next phase of the rollout. From April 2027, the qualifying income threshold will reduce from £50,000 to £30,000, bringing many more sole traders and landlords into scope.
Based on TaxAssist client data, more than a third of affected clients fall within the £30,000 to £50,000 income band, meaning a significant number of businesses across the network will need to prepare for the next stage of MTD.
Jo Nockels added: "The first quarterly deadline is a major achievement, but it is also the first milestone in a much longer journey. The threshold reductions planned for 2027 and beyond will bring many more businesses into the regime.
"The lessons we've learned from this first filing cycle put our network in a strong position to continue supporting clients, helping them prepare well ahead of the next wave and making the most of the opportunities that more regular financial information can create."
August 2026
