Making Tax Digital for Income Tax (‘MTD IT’) will be implemented in April 2026. While accountants understand the new requirements and are taking steps to get their Practice and clients ready, many Initor Global customers have asked how we can help them transition to the new regime using our offshore bookkeeping, tax and accounting services.
By taking early action to understand which clients may struggle with digital record keeping and require additional support, accountants will be able to resource work appropriately. Moving clients to a monthly subscription fee for the costs of software and accounting services can help them understand the full cost of meeting MTD IT responsibilities. Client will then understand the importance of accurate record keeping and conversations about any increase in fees can be completed transparently.
At an Initor Global webinar for accountants on 27 March 2025, we asked how Practices would use software to deliver monthly bookkeeping services and the submission of data to HMRC each quarter. The results were as follows:
• 21% felt clients should maintain records using any bookkeeping software they choose, and their Practice would file quarterly returns using commercial software
• 60% were planning to provide bookkeeping and quarterly filing services in-house using commercial software
• 19% of the audience were thinking about outsourcing bookkeeping and / or quarterly filing work.
With most accountants looking to provide services in-house and others relying on clients to maintain accurate records, accountants will need to decide how these additional services will be delivered. Accountants could offer online learning tools or ‘how to’ guides to help clients who wish to maintain their own digital records, though this may not be suitable for all engagement. Outsourcing bookkeeping and quarterly filing of returns to HMRC provides a cost-effective way to make a successful transition to MTD IT and serve clients efficiently.
We also asked webinar attendees about setting fees for clients requiring additional software and MTD services. Our audience responded as follows:
• 20% of the audience were not planning any fee increase at all
• 51% of the audience were planning to increase fees by up to 50%
• 25% of the audience were planning to increase fees by 51% to 100%
• 4% of the audience were planning to increase fees by over 100%.
With 80% of accountants looking to increase fees, early engagement with affected clients is essential. Many accountants provided feedback that outsourcing would offer an effective solution to reduce the impact of any increase in fees on clients.
MTD IT services you can outsource now
Accountants can start outsourcing tasks and responsibilities now to prepare for MTD IT, as shown below.
Task Responsibility Benefits
Monthly data collection and bookkeeping – any software Outsourced bookkeeper Manage workflows effectively, compliance and quality assured
Update HMRC compatible software quarterly Outsourced bookkeeper Timely and accurate record keeping, early warning of issues
File summary information each quarter using HMRC compatible software Outsourced accountant Deadlines met, data quality assured
Prepare final returns Outsourced accountant Manage peak of work, compliance, and quality assured
File final returns Onshore accountant Capacity to deliver tax advice and support based on offshore accountant work
Accountex London 2025 – meet the Initor Global team!
Initor Global is exhibiting at Accountex London on 14th and 15th May 2025. You can find us at stand 1354 and can book a meeting with our team on either day if you are attending. Our Head of Customer Experience (Robert Grant) is hosting a session at the Practice Excellence Theatre at 5pm on 14th May about outsourcing MTD IT services.
If you are an accountant looking to outsource services for the first time, increase margins and help your client’s meet their MTD IT responsibilities, you can book a video call with one of our expert advisors using this link or send an email to [email protected]. We offer a free trial of up to 10 hours of accountant time and we promise to turn your trial work around within 72 hours.
Initor Global are exhibiting at Accountex London on 14 and 15 May 2025.
