Making Tax Digital for Income Tax (‘MTD IT’) will be implemented from April 2026. HMRC is already contacting agents and affected individuals to let them know how to prepare for their new responsibilities to maintain digital records and submit information online each quarter. While most accountants understand the new requirements and are taking steps to get their Practice and clients ready, many are wondering how to find the resources needed to support clients with their new digital record keeping responsibilities.
The following Frequently Asked Questions (FAQs) may help accountants make a successful transition to the new MTD IT world by outsourcing work.
Can I outsource the regular maintenance of digital records?
Yes. Accountants can engage an outsource partner to maintain client records digitally in real time using cloud-based bookkeeping or accounting software. If clients have only manual records (such as paper or bank statements) the outsource partner can convert these to digital and update software as necessary.
Can I outsource the submission of records to HMRC?
Yes. When a quarterly deadline is due, the outsourced accountant can use the onshore accountants software to submit information if it is HMRC compatible.
Can I outsource any part of the sign-up process?
Yes. Obtaining information from clients can be problematic and resource intensive. An outsource partner can use an accountants’ Customer Relationship Management system or email to contact clients for missing information and ensure this is available to enable an efficient sign-up.
Can I outsource other personal tax work?
Yes. HMRC expects around 2 million taxpayers will use the MTD IT service by 2027. This means another 10 million taxpayers will still need to submit self-assessment tax returns in the usual way by 31 January after tax year-end. An outsource partner can help prepare returns and supporting records and calculate tax due.
Can outsourcing help with peaks of work when quarterly submissions are due?
Accountants currently manage severe peaks of work each month when clients require bookkeeping or payroll processing, each quarter when VAT returns need to be filed and when year-end accounts need to be prepared at popular accounting period ends such as 31 March and 31 December. They also need to manage high levels of self-assessment tax return work between October and January each year.
With the additional workload expected from MTD IT, accountants should look to outsource recurring work such as bookkeeping, payroll processing, VAT return preparation, year-end accounts preparation and self-assessment tax return preparation. This will free up capacity to help clients who may need additional support or complex tax advice as the MTD IT arrangements bed in.
What if I only need to outsource MTD IT work periodically?
Initor Global provides offshore accountancy services paid for by the hour, half-time equivalent or full-time equivalent basis. Services are completely flexible and can be used to clear backlogs of work or meet an unexpected peak in demand for services.
How much does it cost to outsource MTD IT work?
Initor Global rates for bookkeepers and qualified accountants are typically 50% less than the cost of employing a professional based in the UK. Our prices are fixed each year and support incremental and flexible pricing models now used by most UK accountants.
How do I find out more about outsourcing MTD IT services?
Initor Global’s outsourced bookkeeping, accounting and tax services are suitable for MTD IT client engagements. 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.
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 Initor Global’s expert advisors using this link or send an email to [email protected].
Initor Global is exhibiting at Accountex London on 14 and 15 May 2025. You can find us at stand 1354 and can book a meeting with the team on either day if you are attending, or in a video call if you prefer.
