Making Tax Digital — Partnership Pitch 2026

MTD-Approved
Software

4M+ Businesses Affected
£5B Tax Gap to Close
Apr 2026 ITSA Goes Live
35% Your Revenue Share
00 Today's Agenda
01

What is MTD?

The UK Government mandate explained

02

Who is it for?

Businesses, sole traders, landlords

03

Market Size

How big is the opportunity?

04

The Software

What we're building & how it works

05

Financials

Revenue projections, pricing, profitability

06

The Partnership

What you bring, what we bring, how we split

07

Next Steps

Timeline, milestones & call to action

01 What is Making Tax Digital (MTD)?

MTD is the UK Government's initiative to make tax administration fully digital — replacing paper records and annual returns with real-time digital reporting.

!
Mandated by HMRC — not optional
Businesses must keep digital records throughout the year
File quarterly updates via HMRC-approved software
Replaces the annual Self Assessment & VAT returns
Reduces the £5bn annual tax gap from avoidable errors
£5 Billion
Annual tax gap MTD aims to close
3 Phases
VAT → Income Tax Self Assessment → Corporation Tax
April 2026
MTD for ITSA goes live (>£50k income)
MTD Rollout Timeline
2019
MTD for VAT
VAT-registered businesses with turnover >£85k
2022
MTD for VAT
Extended to all VAT-registered businesses
Apr 2026
MTD for ITSA
Self-employed & landlords with income >£50k
Our Opportunity
Apr 2027
MTD for ITSA
Expanded to income >£30k — even bigger wave
Our Opportunity

Why This Matters Now

With MTD for ITSA launching April 2026, over 4 million self-employed individuals and landlords will be legally required to use HMRC-approved MTD software. This is a compliance mandate — the market is not optional.

02 Who is This For? — Target Audience
👷 ~3.1M

Self-Employed Sole Traders

Freelancers, contractors, tradespeople with income above £30k. Legally required from April 2026/27. Most currently unprepared for digital recordkeeping.

🏠 ~2.7M

Private Landlords

Property owners with rental income. Many still rely on spreadsheets or accountants for annual returns. All will need approved software.

🏪 ~5.5M

Small Businesses

Limited companies and partnerships. Already in MTD for VAT; Income Tax Self Assessment and Corporation Tax are next in the rollout.

📊 ~30k

Accounting Firms

Accountants and bookkeepers managing client filings — your natural referral and reseller channel. The Accountant Plan is built for them.

Primary focus: Self-employed sole traders & landlords — the first wave of legal obligation starting April 2026.

03 Market Size & Opportunity
TAM
11.3M
Total Addressable Market
All UK businesses & sole traders required to use MTD software
SAM
4.0M
Serviceable Available Market
Self-employed + landlords in first 2 ITSA phases (>£30k income)
SOM
200K
Serviceable Obtainable Market
Realistic 5-year target (5% of SAM) with accountant partnerships

Revenue Potential at Different Penetration Levels

£2M
1%
(40k users)
£6M
3%
(120k users)
£10M
5%
(200k users)
£20M
10%
(400k users)

Based on £50/year average subscription per user

04 The Software — What We're Building
📱

Cloud-Based Platform

Web & mobile app. Works on any device. Auto-saves records in real time. No software to install.

🔗

HMRC API Integration

Direct MTD-compliant submission to HMRC via official APIs. Fully automated quarterly filing.

📂

Digital Record Keeping

Invoice uploads, bank feed imports, automatic categorisation engine. Say goodbye to shoeboxes.

📊

Quarterly Reporting

Auto-generates and submits quarterly income/expense reports. Replaces the annual return.

🤝

Accountant Portal

Multi-client dashboard for accountants to manage all clients, view submissions, and file on their behalf.

🔒

HMRC Recognition

Fully approved and listed on HMRC's recognised software list. Legally compliant from day one.

05a Business Model & Pricing
Starter
£4.99
per month
or £49.99/year
  • Digital record keeping
  • Quarterly MTD submissions
  • HMRC direct filing
  • Email support
  • 1 user
Most Popular
Professional
£9.99
per month
or £99.99/year
  • Everything in Starter
  • Bank feed integration
  • Invoice auto-capture (OCR)
  • Phone & chat support
  • Up to 3 users
  • Accountant portal access
Accountant Plan
£29.99
per month
or £299.99/year
  • Unlimited clients
  • White-label option
  • Bulk quarterly submissions
  • Dedicated account manager
  • API access
  • Revenue share eligible

Additional Revenue: Setup fees £50–£150 · Add-on tax advice modules · Referral commissions from partner accountants

05b Financial Projections (5-Year)

Revenue vs. Costs Trajectory

Note: Cost is not relevent to Accountant , All expenses is the responsibility of Technology Partner (US)

£5M £3.5M £2M £0.5M Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Revenue Costs
Metric Year 1 Year 2 Year 3 Year 5
Users2,0007,50018,00083,000
Revenue£120k£450k£1.1M£5.0M
Costs£20k£25k£30k£40k
Net Profit £100k £425k £1.07M £4.96M
Month 1–2
Break-Even
£150–£300
LTV per User
<£30
CAC Target
06 The Partnership — Who Brings What
🖥 Technology Partner (Us)
Software development & maintenance
HMRC API integration & compliance
Cloud infrastructure & hosting
User interface — web & mobile app
HMRC recognition & certification
Ongoing feature development
Customer data security & GDPR
Technical support infrastructure
+
🧾 Tax Expert Partner (You)
Tax & MTD compliance expertise
HMRC relationship & credibility
Existing client base (warm leads)
Referral & sales network to accountants
Professional guidance on software features
Help desk for tax-specific queries
Co-marketing to accounting community
Beta testing & feedback loops
06b Revenue Split & Equity Structure
PROPOSED PARTNERSHIP STRUCTURE (Open to Negotiation)
65%
Technology Partner
Software ownership, infrastructure costs, dev team
65% / 35% Revenue Split
35%
Tax Expert Partner
Client referrals, compliance oversight, co-marketing
This percentage is when users coming from your way (10% otherwise)

What this means in real numbers:

Scenario Total Revenue Tech Partner (65%) Your Share (35%)
Year 2 (conservative)£450,000£292,500£157,500
Year 3 (moderate)£1,100,000£715,000£385,000
Year 5 (optimistic)£5,000,000£3,250,000£1,750,000
06c Your Role as Tax Expert Partner
📋

Compliance Oversight

Ensure our software meets MTD requirements. Review feature specs against HMRC rules. Advise on edge cases and updates as legislation evolves.

👥

Client Referrals

Introduce your existing clients to the platform. Each referral earns commission AND grows your equity-worth revenue share over time.

🤝

Accountant Network

Introduce us to other accountants and bookkeepers. The Accountant Plan generates £300/yr per firm — a high-value, recurring revenue stream.

📣

Brand Credibility

Co-market under your professional name. Your credentials add trust that no marketing spend can buy.

💡

Product Feedback

Beta test features, report real-world issues, and shape the product roadmap based on what your clients actually need.

📞

Tax Helpdesk (Optional)

Offer a tax advice add-on to premium subscribers. Direct revenue line — 100% yours to keep.

Competitive Landscape & Our Advantage
What's out there already
QuickBooks
£14–£35/mo
Established brand
Expensive, complex for sole traders
Xero
£16–£47/mo
Strong accounting features
Overkill & overpriced for MTD-only
FreeAgent
£14.50/mo
Simple UI
Limited MTD-specific workflow
Sage
£12–£40/mo
Corporate features
Not built for sole traders/landlords

Our Advantage

MTD-only focus — not a bloated accounting suite
Built specifically for sole traders & landlords
Priced 40–70% cheaper than all major rivals
Expert accountant co-branding & credibility
UK-first, HMRC-native design & experience
Accountant referral network as distribution moat
Simple onboarding — under 10 minutes to first filing
07 Next Steps — Let's Build Something Big Together
01
Week 1

Incorporate, MVP Testing

Formalise equity, roles, NDA, Incorporate the joint venture, Reviewing and improving the MVP

02
Week 2

Product Testing

Testing the Product with uploading some users

03
Week 3

HMRC Recognition

Submit for HMRC software recognition. Get listed on the approved software register.

04
Week 5

Beta Launch

Your existing clients as first users. Collect real-world data, fix issues, refine UX.

05
Week 6

Public Launch

Full marketing push . Scale via your network.

⏰ April 2026 Deadline = Our Launch Window  ·  Every month delayed is market share lost

The Opportunity is Real.
The Timing is Now.

4 million+ businesses will need MTD software by 2027. With your expertise and our technology, we can capture a meaningful slice of this mandated market.

This pitch is a starting point. All figures, splits, and structures are open to discussion. What matters is building something together before the window closes.