Get ready for MTD IT and deliver more effective personal tax services by outsourcing
Accountants have been working hard to identify taxpayers affected by Making Tax Digital for Income Tax (‘MTD IT’) and communicate the government’s requirements to them. However, many are not taking the opportunity to look critically at the way personal tax work is delivered now (and in 2025) to make the most of the new MTD world.
Accountants with self-employed and landlord clients who do not maintain digital records will need to invest time and resources in getting them up to speed with the government’s requirements, ensuring they are prepared for HMRC’s implementation deadline of April 2026. Taking time to introduce such clients to simple bookkeeping or accounting software to record income and expenses in advance of April 2026 will help prepare for MTD IT, though challenges may remain to ensure records are maintained accurately and on time.
As accountants contact clients to progress personal tax work, it is worthwhile encouraging them to become fully digital well in advance of April 2026.
Get your Practice ready for MTD ITSA
With MTD workflows in place for submitting VAT returns each quarter, accountants can start testing those workflows for MTD IT clients. In the lead up to April 2026, accountants can remind clients of the importance of maintaining records using appropriate software and identify any clients struggling to comply with the new MTD IT regime. Such clients may require additional services such as bookkeeping or advice to ensure information is up to date and accurate.
Accountants can also support clients by offering online learning tools or ‘how to’ guides to ease the transition to the new MTD world.
Of course, providing additional services requires a review of fees and pricing. Accountants may seek to introduce monthly subscription-based fees for clients to spread the cost of personal tax work throughout the tax year.
How outsourcing can help
The accounting profession is undergoing significant changes, driven by advancements in technology and shifts in client expectations. Accountants are expected to provide more value-added services beyond traditional bookkeeping and tax work. The new world of MTD offers opportunities for accountants to provide real-time insights, tax forecasting, and strategic advice to affected clients. To meet these changing needs, accountants need to be agile and innovative.
This is where outsourcing comes into play. By leveraging the capabilities of outsourcing partners, you can streamline and augment your services, make your operations more efficient, and make sure you stay competitive. Whether it’s accessing a global talent pool, reducing overhead costs, widening the scope of services you offer to clients, or improving turnaround times, outsourcing presents many opportunities for growth and innovation.
By Robert Grant FCCA
Robert Grant is Head of Customer Experience at Initor Global UK, one of Capium’s strategic partners. Initor Global provides outsourced services to over 100 UK accountants and businesses. If you are an accountant looking to outsource services, you can book a video call with one of Initor Global’s expert advisors using this link or send an email to hello@initor-global.co.uk.
Initor Global offer a free trial of up to 10 hours of accountant time or completion of two self-assessment tax returns regardless of complexity and promise to turn your trial work around within 72 hours.
