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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].