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Outsourcing Making Tax Digital for Income Tax: A Practical Guide for Accountants

What Is Making Tax Digital for Income Tax?

Making Tax Digital for Income Tax (MTD IT) will come into effect in April 2026. Accountants are preparing their clients for their new responsibilities, including maintaining digital records and submitting information online to HMRC each quarter. Many accountants are exploring how outsourcing can help deliver the services needed to comply with MTD IT.
This guide provides a practical approach to navigating the MTD IT landscape and shows how outsourcing with Unison Globus UK can strengthen your service offering.

Who Is Affected by MTD IT from April 2026?

MTD IT will apply to individuals who are UK taxpayers with total income from self-employment or property (including foreign property) exceeding £50,000. This means:

  • Both income sources are counted to determine eligibility.
  • From April 2027, the threshold reduces to £30,000.
  • From April 2028, it further reduces to £20,000.

Income from employment or from a limited company is not included in MTD IT.

HMRC will use information from the 2024/25 self-assessment tax return to determine entry into the MTD IT regime. Individuals with relevant income exceeding £50,000 will need to comply from April 2026 and remain in the regime for three years.

Key Compliance Requirements

Individuals will need to:

  1. Maintain complete digital records of income and expenses for each qualifying business or income source.
  2. Submit a summary online each quarter to HMRC.
  3. Use software for bookkeeping, accounting, and quarterly submissions. HMRC-compatible software is needed for the quarterly submissions.
  4. Provide a final submission by 31 January following the tax year, covering both MTD IT qualifying and other income sources.
The recurring nature of this work makes it ideal for outsourcing.

Why Accountants Should Consider Outsourcing MTD IT Work

Many accountants already outsource routine tasks such as bookkeeping or year-end accounts. Outsourcing MTD IT tasks can help:

  • Reduce the burden of monthly bookkeeping and quarterly submissions.
  • Ensure accuracy and compliance with HMRC requirements.
  • Free onshore accountants to focus on other services and priorities.

Examples of MTD Tasks Suitable for Outsourcing

The following table illustrates the recurring MTD tasks that can be outsourced and the benefits of using an offshore accountant.
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

Step-by-Step: Implementing an Outsourced MTD IT Solution

1. Research Potential Partners

  • Check reputation, track record, client testimonials, and scope of services.
  • Ensure they understand your firm’s specific needs.
  • Review thought leadership and service development relevant to MTD IT.

2. Set Clear Goals

  • Define what you want to achieve: compliance, cost reduction, access to expertise, or improved service delivery.
  • Clear objectives help measure success.

3. Prepare for Outsourcing

  • Review internal resources against MTD IT workload.
  • Pilot outsourcing with a small amount of work (e.g. bookkeeping for sole traders or landlords).
  • Use a free trial if offered by your chosen offshore partner.
  • Evaluate quality, accuracy, and turnaround against in-house benchmarks.

4. Integrate Outsourcing into Your Onshore Workflows

  • Update workflows to track outsourced work in progress.
  • Ensure client data is shared securely (using remote login, secure portals).
  • Encourage offshore teams to help improve record keeping and working papers.

Managing Your Team and Internal Processes

The offshore accountant can manage routine client communication on the progress of work, enabling the onshore team to focus on relationships. Outsourcing allows accountants to:
  • Shift focus from repetitive tasks to advisory and value-added work.
  • Engage with clients systematically, particularly around quarterly deadlines.

Data Security and Compliance Considerations

  • Ensure secure transmission of client data via remote login or encrypted file-sharing.
  • Verify GDPR compliance and data security credentials of the offshore supplier.
  • Update internal policies to cover outsourced tasks and data access.
  • Decide whether offshore staff require full or limited/anonymised access to client data.
  • Include offshore teams in data security training and procedures.

Key Benefits of Outsourcing MTD IT Tasks

Outsourcing MTD IT work offers UK accountants:
  • Compliance with HMRC requirements.
  • Reduced risk of penalties.
  • Cost savings and lower overheads.
  • Access to skilled resources.
  • Improved quality, consistency, and turnaround times.
  • Enhanced client experience.

Why Choose Unison Globus UK for MTD IT Services?

Unison Globus UK provides:

  • Expert support for MTD IT compliance.
  • MTD IT services tailored to the needs of UK accountants and their clients.
  • Flexible resources and fixed pricing.
  • Rapid turnaround times.
  • Seamless integration with your practice.

How do I find out more?

We provide a free trial of up to 10 hours of accountant time, with turnaround work in 72 hours. If you’re looking to outsource services for the first time, increase margins, and help your clients meet MTD IT responsibilities, you can book a video call with one of our expert advisors or email us at [email protected]