Tag: MTD IT 2026

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Deliver MTD for Income Tax without Increasing Headcount: The Advantages of Outsourcing

Making Tax Digital for Income Tax (MTD IT) is reshaping how UK accountants deliver services for their self-employed and landlord clients. With regular digital record-keeping, quarterly submissions to HMRC and increased client expectations, many accountants are facing increased demand for accounting services.
While any increase in demand is welcome, some accountants are struggling to find resources to deliver these services effectively.
This is where outsourcing work can offer a powerful strategic advantage.

Why MTD for Income Tax Is Creating Additional Pressure For Accountants

MTD IT is not just a simple compliance operation to be delivered by accountants. For affected landlords and self-employed clients, it introduces significant responsibilities for the first time, including:
  • Digital record-keeping
  • Quarterly submissions to HMRC 
  • Mandatory MTD-compatible software 
  • Higher volumes of data 
  • Greater uncertainty and support needs.
For many Practices, this means more work for bookkeepers and accountants, and investment in enhanced IT systems, workflows, and support functions. Hiring additional resources to cope with this additional work may seem logical, but it’s rarely the most efficient solution and can create additional risks.

Additional costs and risks of hiring resources

In a hot recruitment market and with increasing costs of employment, taking on new staff can create additional risks for any accountant. For smaller Practices without dedicated HR teams, managing recruitment, performance reviews, payroll, leave, and employee disputes can be a major drain on time.
Recruiting new staff is expensive and time-consuming. Specialist recruitment fees can reach up to 25% of a new employee’s salary, with onboarding costs adding further strain. The elapsed time between advertising a role and filling it with a suitable candidate can be protracted, creating backlogs of work before a post is filled. When appointed, new staff require onboarding and investment in continuing professional development. In-house employees also come with pensions, paid holidays, and other benefits that can exceed 20% of base salary.

As MTD IT client numbers grow, these factors can quickly affect the efficient operation of a Practice.

Outsourcing: A Smarter Way to Deliver MTD IT

Outsourcing allows accountants to deliver MTD IT services without the risk and expense of recruitment while securing many advantages.

1. Instant Access to MTD IT Expertise

Outsourcing provides specialists in bookkeeping and accounting who are fully trained and understand:
  • HMRC MTD IT requirements
  • How to operate MTD-compatible software and bridging tools
  • API integrations and digital record keeping
  • UK data security and compliance standards.
Outsourcing opens the door to expertise worldwide, bridging skills gaps quickly without long training periods. Accountants can leverage digital bookkeeping, personal tax calculations, and efficient accounts preparation while client-facing staff deliver personalised services.

2. Scalable Support

MTD IT work is recurring and predictable by nature. By outsourcing, accountants can:

  • Scale support up when deadlines are looming
  • Scale down during quieter periods
  • Pay only for the work required.
Outsourcing converts the rising costs of employment into predictable, fixed expenses, helping accountants plan cash flow with confidence.

3. Reduced Operational Costs

Compared to employing in-house staff, outsourcing typically offers:
  • Fixed monthly or pay as you go pricing
  • No recruitment fees or employment overheads
  • Clear budgeting and cost control.
Outsourcing provides access to highly skilled accountants at typically 50% lower costs than UK rates. This means accountants can improve productivity and service quality without inflating their payroll.

4. Better Client Experience

Some clients will remain resistant to their new MTD IT responsibilities and are hard to reach by nature. These clients will need additional support with:
  • Software setup and onboarding
  • Maintaining digital records
  • Correcting submission errors
  • Understanding quarterly reporting obligations.
Outsourced helpdesks and support teams ensure faster responses, smoother processes a better client experience overall.

5. Accountants Stay Focused on Advisory Work

When MTD IT workflows are handled externally, the onshore team can focus on:

  • Client advice
  • Tax planning
  • Business growth.

Outsourcing routine tasks such as bookkeeping and quarterly submissions allows in-house accountants to focus on supporting clients. This reduces stress, prevents burnout, and increases job satisfaction. Outsourcing also offers a cost-effective way for accountants to communicate with clients while making the best use of any direct, human contact needed.

MTD IT Services to Outsource

Accountants usually seek to outsource recurring bookkeeping and accounting work, including:

Benefits of Outsourcing MTD IT Work

Outsourcing MTD IT work to Unison Globus offers many benefits to UK accountants through:
  • Helping clients comply with HMRC requirements.
  • Reduced risk of penalties for late/missing submissions
  • Reduced costs and overheads
  • Access to talent and resources
  • Increased quality and consistency of work
  • Better turnaround times
  • improved client experience
  • Data security assurance.

Free trial offer

If you want to learn more about how outsourcing can simplify MTD IT, explore our Making Tax Digital for Income Tax hub and book a free 10-hour trial with Unison Globus UK. We promise to turn your trial work around within 72 hours. You can book a video call with a Unison Globus expert advisors using this link or send an email to [email protected].

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Get your Practice Ready for 2026 with a Strategic Outsourcing Solution

Accountants across the UK are working through the most challenging and transformative period of recent years. Between regulatory reform, client expectations, and ongoing recruitment challenges, accountants are reassessing how they operate. For many accountants, strategic outsourcing has become a critical tool for protecting margins, improving service delivery, and future-proofing their Practice.

2026: A Challenging Landscape for Accountants

A number of challenges are shaping the operational plans of accountants across the UK for 2026 and beyond.

Rising compliance burden

The implementation of Making Tax Digital for Income Tax from April 2026 means many accountants need to introduce new ways of working for affected clients. The shift to digital record keeping requires additional resources to deliver systematic bookkeeping, accounting and tax services for clients who previously had no need for regular contact.
The UK audit landscape is also changing, with an increased focus on audit quality, underpinned by revisions to International Auditing Standards. Audit Firms must be even more vigilant about the assignments they take on and the expertise of auditors to deliver compliant work.
Anti-Money Laundering (AML) arrangements will also undergo significant changes in 2026, with updates to existing AML regulations and the UK Corporate Transparency Act requiring additional checks and record keeping.
With an increasing regulatory burden, accountants need suitably qualified resources, more efficient systems, and robust quality processes to navigate these changes.

Continuing talent shortages

For many UK accountants, the current recruitment market is both costly and time-consuming. Many firms cannot scale their teams fast enough to meet client demand, especially during peak periods such as year-end accounts preparation or personal tax season. With increased competition for skilled professionals, more accountants are turning to outsourcing as a strategic solution. By working with offshore partners, UK accountants can access experienced professionals without the overheads of a full-time appointment.

Increased price sensitivity among clients

Small and medium-sized businesses expect fixed fees, digital-first service, and faster turnaround times. Accountants unable to deliver efficiently risk losing clients or reduced profitability. Using an offshore accountant means prices can be fixed for the duration of a contract, allowing accountants to offer monthly subscription models and guaranteed service levels to clients. The onshore team can spend more time with the most complex clients, understanding client needs, building long-term relationships, and offering additional services.

Technology acceleration

AI-driven automation, cloud accounting, and workflow platforms are reshaping the way services are delivered. Accountants need time, capacity, and specialist support to adopt new technology effectively.
Systems and processes to complete work offshore are highly efficient with rapid turnaround times. The best outsource partner can prepare records and transfer data in real-time using cloud accounting software, increasing confidence in the accuracy of financial reporting. By outsourcing, accountants can access the latest technology for bookkeeping, financial reporting, and payroll without paying for licences, updates, or IT support.

Why Strategic Outsourcing Is Essential

Outsourcing has evolved significantly over the last decade. Accountants no longer confine outsourced work to recurring, transactional work and require a more collaborative, dynamic model. When implemented effectively, outsourcing delivers positive outcomes.

Reliable and scalable capacity

Scaling a practice up or down takes time when services are delivered by full-time staff. Investment in technologies such as AI, cloud accounting and automation of tasks means accountants can scale and grow without taking on the additional risk and costs of direct employment. Where a Practice is looking to downsize, contracts with an outsourced supplier can be terminated in a matter of weeks and in a structured way. There is no need to implement redundancy processes or statutory consultation with employees.
Accountants can also choose to access offshore capacity as and when they need it by using a pay as you go service. This maximises the flexibility to use an offshore option at peak periods or where a backlog of work needs to be cleared. This flexibility enables practices to grow without the long-term cost and risk of extra headcount.

Improved profitability

With the additional capacity outsourcing brings, accountants can focus on core business objectives, whether that involves increasing client numbers or offering a wider range of services to existing clients. Accountants find that outsourcing recurring tasks such as bookkeeping, payroll or accounts preparation frees up time to help clients and understand their business needs, offering scope to deliver high margin advisory services when clients need them most.

Quality and compliance

UK tax and accounting compliance can be complex and is constantly changing. Outsourced professionals understand UK Company Tax and Personal Tax rules and the requirements of HMRC and Companies House. Helping clients stay on top of their responsibilities to file information in line with statutory deadlines ensures fines and penalties are avoided.

Greater operational flexibility

Offshore suppliers can help fill roles across all types of accounting work. Accountants have flexibility to commission resources when they need them on an ad-hoc (pay as you go), half time equivalent or full-time equivalent basis. There is no need to enter into a long-term contract, and the risks of overstaffing are avoided.
As accountants shift priorities towards advisory work, clients expect deeper insights, not just compliance. Outsourcing recurring tasks gives accountants more time to focus on client relationships, strategic advice, and business development.

Preparing for 2026: Essential Steps for Accountants Looking to Outsource

For accountants ready to strengthen their operational strategy for 2026, here are some basic steps to take.

Define clear objectives and research the outsourcing market

Many accountants begin outsourcing work with the single objective of reducing costs. However, outsourcing work also helps build strategic capacity, enables access to specialised skills and professionals, improves service delivery, and strengthens resilience to regulatory changes. Aligning potential offshore partners to onshore priorities, will help accountants make the most of a new outsourcing partnership.
Before entering into any outsourcing agreement, accountants need to research the market, check industry reputations, and track records, obtain client testimonials, and understand the scope of services offered offshore.

Start small and measure progress

Accountants can test the outsourcing process with a small amount of work, such as digital bookkeeping, VAT return preparation, or year-end accounts preparation. Outcomes can be evaluated for quality, technical accuracy, and turnaround against performance consistent with in-house targets. Many offshore suppliers, including Unison Globus, offer a free-trial period, where accountants can test the service before entering into a contract. Accountants can also choose to access offshore capacity as and when they need it by using a pay as you go service. This maximises the flexibility to use an offshore option at peak periods or when an unexpected backlog of work occurs.

Review data security arrangements

There are many ways to share data securely with an offshore accountant – whether through a secure file transfer protocol server, by granting remote access to your server, or sharing files via cloud systems. Regardless of arrangements, the onshore accountant needs to be confident in the offshore IT and physical safeguards, such as anti-virus software, secure VPN connections and 24/7 surveillance.

Assess capacity gaps

During busy seasons, the volume of client work can change quickly. From processing periodic payrolls and tax returns to management reporting and statutory filings, deadlines can quickly converge at key points in the accounting year.

Outsourcing offers a scalable, flexible solution that allows accountants to quickly increase capacity without the overheads and administrative burden of temporary appointments. Outsourcing work enables accountants to stay agile, efficient, and competitive throughout the year.

Map tasks suitable for outsourcing

Most end-to-end accounting tasks – such as digital bookkeeping, VAT returns, year-end accounts, company tax, and personal tax – can be outsourced to trusted providers. Thanks to cloud accounting and digital systems, outsourced teams can seamlessly integrate into daily workflows with minimal disruption.

Strengthen technology

Technology such as Artificial Intelligence, automation, and cloud accounting is helping firms to streamline some processes. But clients still expect personal service, timely advice, and proactive financial insight.
Systems and processes to complete work offshore are highly efficient with rapid turnaround times. The best outsource partner can prepare records and transfer data in real-time using cloud accounting software, increasing confidence in the accuracy of financial reporting. By outsourcing, accountants can access the latest technology for bookkeeping, financial reporting, and payroll without paying for licences, updates, or IT support.

Choose a partner to integrate seamlessly with the onshore team

Choosing between outsourcing and building an in-house team is a key strategic decision for accountants. With rising costs, and the need for real-time information, the right choice can make the difference between a Practice that struggles to keep up and one that runs efficiently and profitably.
For many accountants, the optimal model involves using in-house resources to focus on business growth while outsourcing recurring and deadline driven work. Outsourcing reduces costs, increases flexibility, and allows accountants to focus on growth and remaining resilient to competition.

Conclusion

As the accounting profession prepares for 2026, firms can no longer rely on traditional staffing models alone. The pressures of regulation, changing technology, and client expectations demand a more flexible, scalable, and cost-effective operational strategy.

Outsourcing work means accountants have the capacity to deliver high-quality work, strengthen profitability, and remain competitive in a rapidly changing landscape.

With the right outsourcing partner in place, accountants can deliver their 2026 objectives with confidence.

How do I find out more?

At Unison Globus, we have been providing offshore services to accountants since 2006. Our customers include sole proprietors, as well as small and medium sized UK Accountancy Practices. Our outsourced tax, accounting and payroll services are suitable for all client engagements – from sole traders and micro businesses to SMEs and large companies.

We provide a free trial of up to 10 hours of accountant time, with turnaround in 72 hours. If you’re looking to outsource services for the first time, increase margins, and help your clients thrive, you can book a video call with one of our expert advisors or email us at [email protected]
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Use Outsourcing to Deliver Making Tax Digital for Income Tax Services

The implementation of Making Tax Digital for Income Tax (MTD IT) is reshaping how many UK accountants deliver services from April 2026. With regular digital record keeping and fully online quarterly submissions to HMRC now mandated, and increased contact with clients essential, accountants need to find additional capacity at a time when resources are already stretched.
For many UK accountants, outsourcing bookkeeping and accounting work provides the perfect solution to deliver effective MTD IT services without increasing the permanent establishment of a Practice.

The Resource Challenge

For accountants with self-employed and landlord clients, MTD IT presents an immediate challenge to deliver higher volumes of work every month. For each qualifying business or income source, clients will need to maintain complete, digital records of income and expenses and submit a summary online each quarter to HMRC. While some clients may feel comfortable maintaining their own digital records, many will expect their accountant to deliver these services while minimising any increase in fees.
Compared to the annual Self-Assessment process, accountants must now ensure clients:
  • Maintain complete digital bookkeeping records throughout the year
  • Submit an accurate statement of income and expenses online to HMRC at the end of each quarter using commercial software
  • Finalise the year-end position of each affected business
  • Submit a full self-assessment tax return to HMRC covering all sources of income and allowances by 31 January.
Hiring additional resources may seem like the obvious response to support clients. However, for many UK accountants, the current recruitment market presents a number of challenges, including:
  • Skills shortages: Qualified bookkeepers and accountants are in high demand, and many accountants find it difficult to attract the right candidates
  • Rising recruitment costs: Advertising roles, preparing a candidate shortlist, undertaking interviews, and using agencies all incur costs quickly
  • Training and development: When appointed, new staff require onboarding and continuing professional development
  • Employment risks: From compliance with UK employment law to managing contracts, employee benefits, and HR issues, firms carry the full responsibility
  • Staff turnover: If a team member leaves, the entire cycle starts again, incurring more costs and reducing productivity.
As MTD IT client numbers grow, these factors can quickly affect the profitability and effective operation of a Practice.

Outsourcing: A Scalable Alternative to Recruitment

Outsourcing gives UK accountants access to a broad range of qualified professionals without the risks of a permanent appointment. Most end-to-end accounting tasks – such as digital bookkeeping, VAT returns, year-end accounts, company tax, and personal tax – can be outsourced easily to trusted providers.
When structured correctly, outsourcing works as an extension of the onshore team – aligned to existing processes, software, systems, and quality standards. By working with a specialist outsourcing partner, accountants can:
  • Access talent immediately: Offshore accountants are already professionally qualified, proficient in commercial accounting software and are ready to start immediately
  • Avoid recruitment costs and HR management: The outsource provider handles contracts, salaries, and employee benefits
  • Leverage UK accounting expertise: Offshore professionals are trained in UK accounting, tax, and compliance requirements and will be up to date on the detailed requirements of MTD IT
  • Scale flexibly: Add capacity as demand grows without the risk of recruitment delays. Where demand falls, services can be scaled down without any exit costs.

Which Services Can Be Outsourced Under MTD IT?

Accountants usually seek to outsource recurring bookkeeping and accounting work, including:
Outsourcing offers a cost-effective way for accountants to support clients while making the most effective use of any direct contact needed by the onshore team.
Key Benefits of Outsourcing MTD IT Tasks
Outsourcing MTD IT work to Unison Globus UK offers many benefits to UK accountants through:
  • Helping clients comply with HMRC requirements.
  • Reduced risk of penalties for late/missing submissions
  • Reduced costs and overheads
  • Access to talent and resources
  • Increased quality and consistency of work
  • Better turnaround times
  • improved client experience
  • Data security assurance.

Free trial offer

If you want to learn more about how outsourcing can simplify MTD IT, explore our Making Tax Digital for Income Tax hub and book a free 10-hour trial with Unison Globus UK. We promise to turn your trial work around within 72 hours. You can book a video call with one of our expert advisors using this link or send an email to [email protected].