Making Tax Digital (MTD) is the government’s latest push to move tax reporting in the UK fully online. For many accountants, that means four times the admin with the same fees. It’s a really big change, and while it makes sense in the long run, it also adds more admin to an already full plate.
That’s why the tools and systems accountants use behind the scenes are about to matter more than ever. In this post, we’ll explain the nuances of MTD client data collection and how dedicated software like Content Snare can make this transition much easier for your accounting practice.
Making Tax Digital, or MTD, is the UK government’s plan to modernise how people and businesses deal with tax. The idea is simple enough: keep the records digitally and send updates to HMRC through approved software. For most sole traders and landlords, this means recording income and expenses digitally, then submitting those figures four times a year.
According to the official MTD instructions, the new system is designed to:
In theory, this should also make it easier to see how businesses are doing before the year’s over, and not just when they finally sit down with their accountant.
The first phase covered VAT, and now MTD for Income Tax is on its way. It will apply to self-employed people and landlords earning above the set threshold. The rollout starts in April 2026 for those earning above £50,000, followed by those earning above £30,000 in April 2027, and finally those earning above £20,000 from 2028.
Over time, more taxes are likely to be brought into the scheme.
While Making Tax Digital sounds straightforward on paper, many firms are finding the reality a tad more complicated. What used to be a single annual return is now four quarterly submissions, plus a final declaration. MTD means:
Certain accountants on forums like AccountingWeb and Reddit describe MTD as “another layer of admin for the same job,” and one practitioner put it bluntly: “I’ll be sending four returns instead of one, but the client won’t want to pay four times the fee.” Plenty of small business owners are voicing their frustrations too:
That’s the crux of it: MTD work is often low-margin, but the reporting demands have gone up. To put it simply, the extra admin time can quickly eat into profits without efficient systems.
And then there’s the biggest challenge of all - getting information from clients. Many accountants are already chasing receipts or explanations about odd transactions, and MTD just multiplies those chases across the year. However, you don’t need to waste hours chasing client data because tools like Content Snare can automate much of the process.
With the extra admin that MTD brings, too many UK accountants are finding it hard to keep track of who’s sent what and which clients still owe information. Content Snare solves this problem.
It’s not accounting or MTD software as such, but rather a client data collection tool for gathering documents and information as painlessly as possible. A recent LinkedIn post from Xero’s Head of Sales also highlights Content Snare as a trusted third-party tool for automating client data collection alongside MTD software:
Content Snare was built with professional firms in mind. Instead of chasing clients through endless email threads or shared drives, you can:
Three features in particular make Content Snare a powerful software to assist with Making Tax Digital:
These tools alone save hours of manual admin every reporting period. In fact, research shows that Content Snare users spend 71% less time collecting information and see a 52% drop in data errors - exactly the kind of efficiency boost accountants need when quarterly reporting becomes the norm.
And let’s not forget that handling tax and financial data comes with serious responsibility. Content Snare is ISO 27001 certified, which means it follows internationally recognised standards for data security. From encryption to access controls and independent audits, every layer of the system is designed to keep client information safe.
In a nutshell, Content Snare takes the stress out of collecting client data for MTD.
Sign up for a free 14-day trial now to see what makes Content Snare the best MTD client collaboration software.
While Content Snare helps accountants manage the workflow side of MTD, you’ll still need core accounting software that can handle the actual digital record-keeping and submissions to HMRC. These tools form the foundation of MTD compliance, and they make life much easier when paired with a data collection platform like Content Snare.
Xero has become one of the go-to platforms for MTD, covering VAT and now preparing for Income Tax submissions. Its built-in tools handle:
For firms already using Xero HQ, features like Tax Manager make it possible to manage quarterly submissions and deadlines in a single dashboard.
QuickBooks is another major MTD-compliant platform, particularly popular with sole traders and small business clients. It does multiple things automatically:
Many accountants combine QuickBooks with Content Snare to collect and verify client data before submission time rolls around.
FreeAgent is a good fit for smaller clients who want a simple accounting solution that’s already MTD-ready. It offers the following features:
The best part is that FreeAgent does it without much setup.
When choosing software to support MTD, it helps to think beyond just compliance.
Each of these accounting systems does a solid job on the tax side. But the firms that will really thrive under MTD are those that combine solid submission software with a smart workflow tool like Content Snare, so the numbers are not only correct, but collected with far less stress.
Making Tax Digital is here to stay, and it’s only going to expand over the next few years. The firms that get ahead now will be the ones that treat MTD as a chance to tighten up their systems. Accountants who build those systems now will save themselves a world of stress later, and keep both their clients and HMRC happy in the process.
Yes, you need special software for MTD compliance. HMRC requires the use of MTD-compatible software to record and submit tax information digitally. For instance, tools like Xero can handle the official submissions, while workflow tools such as Content Snare help gather the client data you’ll need before filing.
You’ll be collecting and checking information more often. That means more communication and deadlines. That’s why a good process for managing requests and documents can save you countless hours.
Using a dedicated tool like Content Snare is the best way to collect client data for Making Tax Digital. The platform lets you automate reminders, set recurring requests, and keep everything organised in one secure portal, which makes collecting client data for MTD far simpler and much faster.
Yes, Content Snare integrates with tools like Xero, so you can connect client data collection with your existing MTD workflow. In addition, With Content Snare's Zapier and Make integrations allow you to integrate with thousands of apps and build automated workflows.
Yes, you can use more than one piece of software for MTD. Most firms already do. Your accounting software handles MTD submissions and calculations, while other tools support the workflow around it, including document collection and task tracking. This combination usually gives the best results.
Dražen Vujović is a journalist and content writer. More importantly, he is a father of two and a long-distance runner.
