New tax year: 5 healthy habits for a thriving practice

This new tax year, with the deadline for MTD for Income Tax just a year away, offers a great opportunity to cultivate a well-structured and efficient practice. Think of it as tending a zen garden: by carefully raking away inefficiencies, nurturing team harmony, and consistently maintaining client records, you can create a space of calm productivity. 

Here are five essential habits to help you achieve your 2025 goals and navigate upcoming legislation changes with ease.

1. Nurture client relationships with digital tools

MTD for Income Tax brings a unique set of challenges when it comes to client relationships. It’s all about behavioural change: helping clients adjust to how they manage their financial data and guiding them in adopting digital tools.

A good starting point is to identify clients who will need to transition to MTD submissions first. Consider the number of clients and the complexity of their businesses. This will help you set realistic timelines and prioritise your efforts. The more clients you have affected by the first MTD deadline, the earlier you need to start the conversation.

The digital transition, especially for those clients who are a bit tech-averse, doesn’t have to be painful and stressful. It’s important to position technology as a solution, not just another problem.

As Andy Thomas at Abacus Jack mentioned in our recent webinar: “When clients come to us as their accountants, they want solutions. They want to focus on running their business and they want us to focus on keeping them compliant. So the tech element will really become vital in achieving this, to help clients with their submissions. […] If clients are not already on software, we’ve got twelve months now to start that process, recommending solutions.”

2. Balance workload with agile digital processes

A well-established practice tech stack lets technology take care of the heavy lifting in the background, leaving you free to focus on what really matters: nurturing valuable client relationships. 

Automated tools and integrations that are tailored to the needs of your practice and clients can be a real asset during the MTD transition. This also includes selecting the right accounting software. In general, you should look for software that is:

• user-friendly - so both you and your clients can navigate it with ease
• HMRC-compliant - guaranteeing that your submissions meet all regulatory standards
• reliable and supporting - providing peace of mind and access to help when you need it

3. Tend to client digital record-keeping habits

Cultivating positive digital record-keeping habits requires a proactive and supportive approach. Introduce clients to the ease of mobile apps (like FreeAgent’s), highlighting how they allow for immediate data entry and reduce the need for delayed admin tasks, including tools like Smart Capture. 

Build a standardised process that clearly outlines data requirements, submission deadlines, and preferred formats, prioritising client convenience. Here are some thought-starters to help you get started with a strategy.

• What are you going to ask for?  
• When are you going to ask for it?
• What format do you want it in? 
• What works best for them?
• What’s going to make life easier?

You can also take a strategic view towards future compliance: ”How would I want to be operating in 2030, when all my clients that are over £20,000 need to be compliant and adopt MTD for Income Tax?”. Use this as a guide to implement streamlined processes and corrective measures today, positioning both your practice and your clients for success.

“It’s a case of finding out what you need to do, so that you can get processes in place to then be able to go to the client and say: ‘We need to talk about the steps to get you to where you need to be in the next year’.” - Stephen Franklin (Galloways)

4. Cultivate a happy and engaged team

Clients will need extra guidance during this transition, so it’s essential your team also feels prepared and supported. A transparent, realistic approach to navigating client challenges will help improve team retention and satisfaction. Investing in dedicated training and fostering a culture of continuous learning will empower your staff and increase their confidence. 

To streamline the MTD transition, clearly communicate your expectations for managing challenging client relationships with your team. For example, emphasise the importance of prioritising clients who are resistant to digital methods (such as those still using pen, paper, and spreadsheets). Addressing these clients early on will lead to more efficient workflows and an overall happier team.

5. Find your centre for long-term growth

While change can feel daunting, it also unlocks opportunities. Embracing this shift allows you to move beyond simply fulfilling compliance requirements and instead become a true partner in your clients’ financial journey. 

This added value fosters stronger client relationships, boosts retention, and generates valuable referrals, ultimately fuelling your practice’s growth and success. It’s about finding that centre where efficiency and client empowerment intersect.

For more tips about kick-starting your digital habits ahead of the new tax year and MTD, watch this webinar recording.