WEEKLY EDITION BY MARINA MOUKA

Welcome to your latest Accountancy Age’s Weekend Digest, your go-to source for the week’s top insights and updates tailored for accountants.

➡ Still treating resource management as admin? It might be costing your firm its margins.

➡ MTD anxiety spikes as over 1 million HMRC calls go unanswered, leaving the self-employed scrambling for support

➡ Tax bodies caution against 'nil' MTD filings - quarterly updates must reflect reality, not placeholders.

INSIGHTS

The profitability engine accountancy firms are overlooking

Many accountancy firms are overlooking a key driver of profitability: resource management. A new report by Dayshape and RMI finds that while firms acknowledge its importance, they often fail to connect it to financial performance. Most firms lack real-time visibility, financial alignment, and streamlined systems—leading to missed opportunities and preventable losses. Embedding resource management into strategic and financial planning, supported by modern tools, can help firms boost margins, reduce inefficiencies, and scale more sustainably.

NEWS

1.1 million unanswered HMRC calls as MTD panic sets in

HMRC’s helplines are buckling under the pressure of Making Tax Digital (MTD) queries, with over 1.1 million calls going unanswered in early 2025. New data from RIFT shows surging online searches for MTD guidance as the self-employed scramble to prepare for the 2026 Income Tax Self Assessment (ITSA) rollout. Long wait times and missed calls highlight HMRC’s capacity issues, prompting experts to urge individuals to seek external advice. With penalties looming, the clock is ticking on one of the UK’s most ambitious tax reforms.

NEWS

New guidance warns against ‘nil’ MTD submissions

Tax professionals have been warned against submitting “nil” figures in Making Tax Digital (MTD) quarterly updates unless accurate and supported by HMRC guidance. New interim guidance from the UK’s leading tax bodies clarifies how Professional Conduct in Relation to Taxation (PCRT) should be applied ahead of the April 2026 mandate. The document outlines ten key FAQs, stressing the need for accuracy, professional judgement, and transparency—even in early submissions. All staff involved in MTD services, not just tax-qualified members, are expected to follow the updated standards.

What’s the most urgent priority for UK accountancy firms this quarter?