The world of Self Assessment is changing massively. Have you put together your MTD Income Tax Communications Strategy?
From April 2024, taxpayers who have happily remained under the Making Tax Digital radar will have to start filing their tax returns using MTD compatible software and they will be required to file income tax returns five times a year (the fifth submission being the end of period statement or mopping up exercise).
For many small businesses, the self-employed and landlords with annual income over £10,000, MTD for Income Tax (MTD ITSA) will be one of the biggest tax changes (and challenges) they have had to deal with. You need to act now to start the process of educating and training these clients on the new tax system.
So what is your firm going to do to make this transition as easy as possible for them?
Your MTD ITSA communications strategy
As part of your MTD ITSA strategy, there will be three distinct stakeholder groups that you will need to communicate with. They are your:
- staff;
- clients;
- prospective clients.
Staff
Keep your staff up to speed with the latest MTD ITSA statements from HMRC and how these will affect your clients.
Hold regular staff meetings to make them aware of your firm’s strategy for rolling out MTD ITSA to existing clients and what (if any) steps are being taken to use the changes to attract new clients to the practice.
Identify any training needs to get relevant staff up to speed with MTD ITSA compatible software.
Clients
Identify which clients will be affected by MTD ITSA and also any clients who could avoid the new rules by making changes to their business before April 2024.
For those that will be affected, they need to receive regular updates and reminders about the forthcoming change, how it will affect them and what steps they need to start taking in advance of the regulations coming into force.
Identify which MTD compatible software will be best for each client and discuss the options with them. This could be accounting or bookkeeping packages or bridging software.
Where necessary, arrange training with relevant clients on any new MTD software.
Consider organising seminars, webinars and video demonstrations that explain MTD ITSA, what’s involved and what clients need to do.
Provide information to other clients who won’t be affected by MTD ITSA and reassure them they don’t have to worry about the new rules unless their circumstances change and if so, they need to let you know ASAP.
Prospective clients
Promote your firm’s knowledge and expertise of MTD ITSA and how you can help local individuals make sure they are MTD compliant. This can be done on your website, social media, adverts in local/regional publications, radio adverts, editorial in magazines and so on.
Ask existing clients for referrals to their friends and families who will be required to comply with the new rules.
Prospective clients and third-party introducers should also be invited to any events you are organising to explain the MTD changes.
Your MTD ITSA marketing toolbox
With such a massive change about to come into force, it is important that you utilise as many different communication channels as possible to ensure you communicate the MTD ITSA rules and how your firm can help people.
Your marketing and client communication toolbox should therefore consider several of the following activities:
- meetings
- phone calls
- emails and letters
- newsletters
- website – MTD ITSA service page and blogs
- intranet
- social media posts
- leaflets
- posters around the office
- Google AdWords and SEO
- seminars, webinars and other events
- video demonstrations of software
- adverts and or editorial in local magazines and newspapers
- networking opportunities
- trade shows and exhibitions
- and so on.
However, the activities your firm chooses will come down to time, budget, who you want to communicate with and what your objectives are, e.g. to focus on existing clients or to use MTD ITSA as an opportunity to grow your client base. What you must avoid is assuming that if you send one email or letter, that will be sufficient. It won’t. Your stakeholders will need several updates. You will need to use different communication channels to ensure your message is seen and repeated so that your audience contacts you for more information.
For all three stakeholder groups, the most effective way to roll out your MTD ITSA communications plan is by creating a written action plan which identifies what activities will be used, when and who by. In doing so, the process for transitioning your clients across to the new system will be more effective and is likely to not be left until the last minute.
If you would like assistance with your MTD ITSA marketing activities, I’m here to help. Simply email me at vicki@momentumforprofessionals.co.uk or call 01822 833300.
