If you’ve been in the game as long as I have, you’ll know that the goalposts for the accountancy profession in the UK don't just move, they occasionally get dug up and replanted in a different stadium. Right now, in June 2026, we are standing in the middle of one of the biggest structural shifts our industry has ever seen: MTD for ITSA (Making Tax Digital for Income Tax Self Assessment).
For some, it’s a source of constant "compliance-induced" headaches. For others, particularly those looking at a practice sale or planning their retirement, it’s actually a golden opportunity to bolster their accountancy practice valuation.
I’ve spent the last few weeks speaking with dozens of firm owners, from sole practitioners to partners in multi-office firms, and the sentiment is clear: MTD for ITSA isn't just about software; it’s about the future saleability of your life’s work.
Whether you are looking to sell your practice this year or you're a retiring accountant eyeing a phased exit over the next three years, here is what you need to know about the current MTD landscape and how it’s affecting the market for accountancy practices for sale.
The MTD ITSA Roadmap: Where are we now?
As of April 2026, the first wave of MTD for ITSA is officially live. If your clients have a total self-employment and/or property income over £50,000, they are now required to keep digital records and provide quarterly updates to HMRC.
The next big milestone is fast approaching:
- From 6 April 2027: Individuals with income between £30,000 and £50,000 will enter the fold.
- The "Under £30k" Crowd: While currently out of scope, the government continues to review this, and most accountancy practice buyers are already pricing in the assumption that everyone will be digital eventually.
For a deeper dive into the technical requirements, the official GOV.UK guidance remains the gold standard, but the real story for us isn't in the tax code, it’s in the ledger.
Why MTD is a Valuation Event, Not Just a Compliance Task
In the world of accountancy mergers & acquisitions, buyers don't just buy your past profits; they buy your future stability. When I carry out an accountancy practice valuation, I’m looking at how much "friction" exists in your client base.
Pre-MTD, a firm with a lot of "paper bag" clients (those who drop off a literal bag of receipts in January) could still be valued decently if the recurring fees were high. But in 2026, the market has changed.
The "Digital Premium"
Accountancy practice buyers are now paying a premium for "MTD-Ready" firms. If your clients are already on Xero, QuickBooks, or FreeAgent, and your team is already managing quarterly submissions without breaking a sweat, your firm is infinitely more attractive.
Conversely, if you are looking to sell accountancy practice assets that are still heavily manual, you might find that buyers either walk away or demand a significant "discount" to cover the cost of the digital transition they’ll have to manage themselves.
If you're browsing sites like Retiring Accountant or looking at listings on Vivian Sram, you'll notice that the most successful accountancy mergers involve firms that have already embraced this digital shift.
From Annual Compliance to Recurring Revenue
One of the best things about MTD for ITSA, if we can look past the implementation stress, is what it does to your fee structure.
The old model was: One big bill after the January deadline.
The MTD model is: Monthly or quarterly fees for ongoing digital support.
For anyone looking at practice acquisition, a firm with a high percentage of recurring fees paid via monthly direct debit is the holy grail. It creates a predictable cash flow that makes the acquisition much easier to finance. If you’re a retiring accountant, moving your clients to a monthly subscription model today could add 10-20% to your final sale price.
The Personal Touch: Dealing with the "MTD Burnout"
I recently had a conversation with a practitioner who was absolutely exhausted. Between the new quarterly deadlines and trying to educate stubborn clients, he felt like he was running on a treadmill that was slowly speeding up.
His first thought was: "I just want to get out. I'll take any offer."
My advice to him, and to you, is simple: Don't sell in a panic.
Yes, MTD is a lot of work. But a rushed practice sale is usually an undervalued one. As an accountancy broker, my job is to take that pressure off your shoulders. We can find accountancy practice buyers who actually want the challenge of the transition because they have the systems in place to handle it. You don’t have to solve every MTD problem before you sell; you just need a clear map of where the problems are.
5 Steps to Prep Your Practice for an Exit in the MTD Era
If you’re thinking about your exit strategy or a practice merger UK-wide, here’s my checklist for 2026:
- Segment Your Clients: Who is in scope for 2026? Who is in for 2027? A buyer will ask for this data on day one of due diligence.
- Standardise Your Tech: Don't support five different bookkeeping apps. Pick one or two and stick to them. It makes your firm much easier to integrate during a practice acquisition.
- Update Your Engagement Letters: Ensure they cover the additional work of quarterly submissions. This protects your margins and shows a buyer you’ve got your house in order.
- Review Your Bookkeeping Business for Sale Potential: If you have a separate bookkeeping arm, it might be worth more as a standalone or as a highly integrated part of the main firm.
- Get a Real Valuation: Don’t rely on "rule of thumb" multiples from five years ago. Get a market-based Accountancy Practice Valuation that reflects the current 2026 climate.
How I Can Help
I know the UK accountancy market inside out. Unlike the large corporate brokers, I don’t operate a call centre. When you call Bains Watts, you speak to me, Peter Watson.
Whether you’re looking for a bookkeeping business for sale, curious about accountancy practice merger opportunities, or simply want to know what your "life’s work" is worth in this new MTD world, I’m here to give you honest, confidential, and experienced advice.
The market for accountancy practices for sale UK wide is still very active. Buyers are hungry for well-managed, digitally-capable firms. If you’ve done the hard work of getting your clients MTD-ready, now is the time to reap the rewards.
Ready for a Confidential Chat?
If you're considering a practice sale or just want to explore your options, let’s have a no-pressure conversation. I've helped countless accountants navigate their way to a successful retirement, and I'd be happy to do the same for you.
Book a confidential 1-to-1 call with me here
The transition to MTD doesn't have to be the end of your tether: it can be the beginning of your next chapter.
Cheers,
Peter Watson
Director, Bains Watts Ltd
