For many accountants and bookkeepers, Making Tax Digital (MTD) once meant software migrations and deadline anxiety. But in 2025, the conversation has evolved. MTD is no longer just a compliance requirement — it’s a test of trust.
- Trust in your data.
- Trust in your processes.
- Trust in your firm’s ability to adapt when regulations evolve.
During a recent HMRC webinar, Lenny Barry, one of HMRC’s MTD External Engagement Team, made this point crystal clear:
“Testing shouldn’t be seen as a last-minute exercise. It’s how firms can demonstrate their readiness as a practice, and to their clients; and help HMRC ensure smoother digital filing experiences for all.”
That’s the foundation of true MTD readiness — not just filing on time but being able to show that your systems work reliably before the filing happens.
Why Testing Builds Confidence, Not Caution
At CPDStore, we’ve worked with hundreds of accounting and bookkeeping professionals transitioning to digital tax processes. The firms that thrive under MTD aren’t the ones with the flashiest tools — they’re the ones that test early and test often.
Testing builds confidence in three ways:
- Reduces uncertainty — You spot issues in advance, rather than during a live submission.
- Creates accountability — Each stage of your workflow becomes measurable and reviewable.
- Strengthens relationships — Clients see you’re proactive, not reactive.
Lenny Barry advocates:
“Firms that test early are helping us identify gaps and improve the system for everyone. That collaboration helps HMRC and the profession move forward together. But, more importantly, testing is for the benefit of practices, and being ready for MTD”
Testing, in other words, isn’t bureaucracy — it’s leadership in action.
The Four Layers of MTD Testing
To make testing systematic, we encourage firms to apply a four-layer framework designed to validate every part of the MTD process before go-live.
System Simulation
Run full live submissions through your software platform using real data. Check that your MTD-compatible software correctly connects with HMRC’s APIs and returns valid responses. Record any error codes or mismatches and resolve them early. In Testing, the HMRC MTD Customer Support Team can help you with any issues.
Data Integrity Review
Testing the system is one thing — testing the quality of data is another. Audit VAT or income tax records for missing entries, incorrect client identifiers, or inconsistencies between digital and manual inputs.
Workflow Validation
Every team member involved in the MTD process should have defined responsibilities and testing checkpoints. Who prepares? Who reviews? Who submits?
Testing your workflow ensures your internal controls hold up under pressure.
Client Readiness Testing
Finally, include your clients in the testing process. Run short MTD-readiness sessions with them. Confirm they understand digital recordkeeping and know when their data needs to be updated. This simple step could help eliminate many of the submission errors in the future.
Firms that integrate testing and digital readiness reviews consistently report stronger client loyalty and trust.
Learning From HMRC’s Own Testing Culture
One of the most overlooked lessons from HMRC’s digital transformation is how much they test behind the scenes.
As Lenny Barry noted in the transcript:
“Our teams are testing the MTD systems continuously. We would encourage accountants to mirror that discipline — to test often, report issues, and build shared confidence in the platform.”
By adopting the same iterative mindset as HMRC, firms align themselves with the very principles driving MTD’s success: consistency, verification, and continuous improvement. That’s why at CPDStore, we view testing not as a one-off event but as an ongoing professional habit — a modern extension of your quality control and compliance review.
Embedding Testing into Firm Culture
Here’s how firms can make testing a living part of their culture:
- Schedule regular assurance reviews: Treat quarterly assurance as non-negotiable—covering not just testing, but the process, workflow, review checks, and submission.
- Encourage readiness over penalties: Quarterly submissions are expected, but in Testing HMRC don’t penalise for late or missed submissions. The goal is to help practices prepare, refine their processes, and build confidence in their assurance workflow.
- Document every outcome: Consider keeping digital testing logs to help staff understand the process more deeply and to build a culture of transparency and continuous improvement.
- Share learnings internally: Each test should result in a short debrief — what worked, what failed, what changed.
- Integrate into CPD: Encourage team members to reflect on testing outcomes as part of their professional development.
By embedding testing into the rhythm of your firm, you move from reactive troubleshooting to proactive improvement — and that’s exactly the kind of leadership clients value.
The Role of Testing in Trust and Transparency
Trust is the new currency of the profession.
Testing provides that evidence. It transforms confidence from an assumption into a proof point. In a compliance landscape increasingly defined by automation and scrutiny, that proof is priceless.
Lenny Barry said during the MTD webinar;
“The firms who can show they’ve tested their systems don’t just pass compliance checks — they build reputational capital. That’s what we want to see more of across the industry.”
Our Advice: Testing as Continuous CPD
At CPDStore, we see testing as a form of active learning. Every test — whether it’s a submission in Testing, a workflow review, or a client audit — is an opportunity to refine skills and build resilience. We encourage accountants and bookkeepers to treat testing as part of their annual CPD tracking. Reflect on what was tested, what improved, and what still needs strengthening. Testing doesn’t just ensure compliance — it accelerates competence.
FAQ
Q1. What is the main goal of MTD testing for accounting firms?
A: MTD testing helps firms verify that their systems, data, and workflows meet their own digital requirements and expectations, before filing. It’s how firms demonstrate readiness, reduce submission errors, and build client confidence.
Q2. How often should accountants and bookkeepers test their MTD systems?
A: Quarterly testing is ideal. Treat it like an internal audit — regular checks ensure ongoing compliance and help identify issues before deadlines. Given the comparative shortage of time before MTD goes live, you could look to submit Quarterly Updates monthly, even weekly, to generate those opportunities to learn and refine?
Q3. What should be included in an MTD readiness test?
A: Include system simulation, data integrity checks, workflow validation, and client readiness testing. Together, these confirm that both technology and people are MTD-ready.
Q4. How does testing strengthen client relationships?
A: It builds transparency and trust. When clients see evidence of testing, they gain confidence that their data is safe and submissions are accurate.
From Compliance to Confidence
MTD readiness isn’t a deadline — it’s a discipline. Testing transforms that discipline into confidence. And confidence builds trust — the kind that keeps clients loyal and regulators assured.
At CPDStore, we believe the most future-ready accountants aren’t the ones reacting to HMRC updates — they’re the ones testing for them.
Why Accountants Choose CPDStore
At CPDStore, our goal is simple — to make professional learning practical, accessible, and aligned with the real challenges accountants and bookkeepers face every day.
Our values are built around one promise: your time counts — every minute of it. Accountants and bookkeepers love CPDStore because:
- Per Minute CPD™: Earn CPD by the minute in real time with flexible, trackable learning — no wasted hours, no admin stress.
- Expert-Led Learning: Learn directly from the UK and Ireland’s top accounting and tax experts.
- Unlimited CPD Access: Attend live webinars, on-demand conferences, and deep-dive courses, all included in one flexible membership.
- Team Packages: Manage firm-wide CPD with downloadable reports detailing CPD consumption — plus exclusive discounts for larger teams. Perfect for practices of any size.
- Trusted by Professionals: Designed for accountants, auditors, and bookkeepers who want relevant, practical learning that translates to real results.
Our CPD online platform for accountants and bookkeepers empowers you to test your knowledge, refine your skills, and stay ahead of every compliance change — including MTD.
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The contents of this article are meant as a guide only and are not a substitute for professional advice. The author/s accept no responsibility for any action taken, or refrained from, as a result of the material contained in this document. Specific advice should be obtained before acting or refraining from acting, in connection with the matters dealt with in this article. The information at the time of publishing was accurate and could be subject to final changes.
