There are few things more challenging and frustrating than disengaged clients –especially after you’ve worked so hard to attract them. Disengaged clients are the ones who were once interested in what you had to say and the services you provide. They were active and responsive, but now… Little or no interest, participation or communication.
This is annoyingly common in the small-business accounting world. After you first attract a new client they seem to be all ears and eyes. But sooner or later, they stop responding as quickly to your calls, messages or emails. They delay or avoid providing you with the information you need and show little enthusiasm for you, your services or processes.
Disengagement is risky, of course. The worse it gets, the greater the chance that you’ll lose a client. Either they end up trying to do more of their tax and accounting tasks or you lose them to a competitor who appears brighter and shinier than you.
Why do clients become disengaged?
In some cases, disengagement is caused by the client’s expectations not being met. Your services just aren’t delivering the value or results they hoped for. Quite possibly, their experience of your services failed to match what was promised in your marketing or sales conversations. Client disengagement can provide difficult but valuable lessons.
Lack of connection or communication can also lead to disengaged clients. They don’t feel seen, understood or valued. However, sometimes it’s not you, it’s them. They’re faced with other pressures and more urgent priorities. Things may have changed for them, possibly significantly. They could have money worries or may not or no longer understand your processes or expectations of them.
Things may not have become that bad so far, but the writing may be on the wall. The great news is disengagement doesn’t necessarily mean you have to go separate ways. There are things that you can do to re-engage your clients, including reaching out to provide real value by aiding their understanding and easing the pain of key challenges they face. In the coming years, for millions of sole traders and landlords, Making Tax Digital for Income Tax is one such challenge.
Making Tax Digital: opportunity knocks
The first phase of Making Tax Digital (MTD) for Income Tax’s introduction will start on 6 April 2026 (not that long off now). The major changes that it will bring to maintaining financial records (that it has to be done digitally and more regularly) and quarterly reporting of tax data to HMRC will first affect about 780,000 UK sole traders and landlords who earn more than £50,000 in gross trading or gross rental income.
A further 970,000 will be affected from 6 April 2027, when MTD for Income Tax is extended to those earning more than £30,000 in gross trading or rental income, with another 900,000 captured when the scope is extended on 6 April 2028 to those earning more than £20,000. That means more than 2.5m sole traders and landlords will be affected by MTD for Income Tax in the next few years and many of your customers could be among them.
Tore-engage with your sole trader and landlord clients, this gives you the perfect opportunity to reach out to tell or remind them about MTD for Income Tax. Many need to know that significant changes to how they must record their income and expenses (i.e. digitally) and report them (i.e. each quarter digitally) to HMRC are soon heading their way. You can play a key role in explaining the MTD for Income Tax process.
Making Tax Digital: classic win-win
You can also reassure them that, with the necessary accounting software, which isn’t expensive, complying with new MTD for Income Tax rules won’t take up that much time or effort. In truth – it will be easy. However, should they prefer, for a relatively small monthly fee, you can take care of it all for them (including the all-important adjustments and final declaration following the fourth quarterly update) and fully take away their MTD for Income Tax pain. A classic win-win and excellent way to re-engage disengaged sole trader and landlord clients.
Created for sole traders, CIS sub-contractors and small private landlords (and their accountants), Coconut is the ideal MTD for Income Tax solution. It’s easy to use and super convenient, accessible via smartphone, tablet, laptop or desktop. It can be connected to 30+ banks and credit cards and it makes tracking and reporting income and expenses much easier. Join our partner programme and receive superb subscription discounts. The more clients you sign up, the cheaper it is.
