If you are a UK Accounting Practice looking to improve the way you manage the extreme peaks of work when helping your clients with their personal tax situation, and preparing their annual Self-Assessment Tax Returns (‘SATRs’), you should consider outsourcing to a supplier such as Initor Global.
Many accountants do not know where to start when considering options for outsourcing personal tax services, including the preparation of SATRs. This blog attempts to break down some of the barriers accountants perceive when considering outsourcing while providing examples of the many benefits which can be secured.
- What does outsourcing personal tax services mean for a UK Accounting Practice?
- Why should a UK Accounting Practice outsourcing personal tax services?
- When is the best time to outsource personal tax services?
- What should I look for in an outsourcing partner?
- Which personal tax services can be outsourced by an Accounting Practice?
- Main features of Initor Global personal tax services
What does outsourcing personal tax services mean for a UK Accounting Practice?
Outsourcing means a specialist supplier (or ‘partner’) will take responsibility for preparing your clients’ SATR. Most Practices decide to outsource the preparation of returns when they have high volumes to prepare over the peak HMRC submission period between October and January each year.
The outsourced services will usually be provided offshore from jurisdictions such as India or Asia, and will need to be fully compliant with HMRC’s rules surrounding personal tax and other data protection requirements. As a UK Accounting Practice, you will need assurance the outsourcing partner has sufficient capacity, including qualified and experienced tax specialists and accountants familiar with the UK’s personal tax regime, to ensure a fully compliant service is provided.
At a minimum, you should seek an outsourced supplier who is GDPR and ISO 27001 compliant and who can provide assurances over client data security. You should also enquire about the professional tax and accounting qualifications, and accounting software accreditations the individuals providing your outsourced services hold.
Most outsourcing partners will have experience of cloud based tax and accounting software and will provide services seamlessly to your Practice. Integrating outsourced services with the operating framework of internal controls, systems and performance reporting already used by a Practice is essential to ensure the quality of services provided.
Outsource partners can use your customer relationship management (CRM) systems to contact clients to progress work and resolve any matters arising, though some Practices prefer to retain this responsibility.
Why should a UK Accounting Practice outsourcing personal tax services?
The following paragraphs provide some insight to the benefits a UK Accounting Practice can secure from outsourcing personal tax services.
Professional services provide a better client experience
UK Accounting Practices recognise that it can be difficult to prepare their clients’ to meet HMRC’s deadlines for submitting an SATR each year. By nature, clients will want to put off submitting information to HMRC which results in a tax liability, and will want to delay paying HMRC any tax due until the last possible moment on 31 January each year.
In addition, many clients are simply not interested in the detailed work accountants need to complete to ensure the SATR is prepared accurately and on time. Practices outsourcing the SATR preparation process find they have more time to spend with their clients discussing their personal tax situation and engaging them in the process, with the opportunity to upsell high value advisory services.
With an outsourced solution, Practices will have access to a team of tax specialists who will provide assurance SATRs are prepared accurately and on time, and that experts are available to provide any other services commissioned, such as the preparation of sole trader accounts or amendments to prior year submissions.
Reduced costs and increased quality
The cost of outsourcing tax and accounting services is typically 50% less when compared to the equivalent services provided in-house. The outsourced partner will usually price their services based on the complexity of an SATR. With an outsourced solution, there is no need to maintain a large in-house team of tax specialists. When implementing an outsourced solution, UK Accounting Practices often find the review of internal systems and processes needed secures wider efficiencies, such as the automation of tasks and more effective document management.
With an outsourced partner focused on delivering the tasks and processes an Accounting Practice needs, the quality and accuracy of SATRs is improved, with an increase in the quality of services to your clients.
Clients can access more services
Using an outsourced solution allows an Accounting Practice to scale up and confidently offer personal tax and advisory services to meet clients’ needs. It also ensures a Practice has the capacity to deliver growth in revenues, and that clients have access to all of the services they need as their personal tax situation changes.
Reduced risk of service failure
Many UK Accounting Practices rely on a small team of accountants working tirelessly throughout peak periods to achieve HMRC’s deadlines for filing SATRs. Reliance on a small number of experienced tax specialists presents a high risk of service failure should individuals leave a Practice at short notice, and if you cannot access a suitably qualified or experienced replacement in time. With an outsourced solution, an Accounting Practice has access to a large team of experienced personal tax specialists who can provide the continuity of service needed.
Data Protection assured
Most outsource partners will have experience of all major cloud based bookkeeping and accounting software, which can be accessed from their own secure servers. They can also access your Practice server using secure remote login arrangements. Outsource partners can provide evidence they are GDPR and ISO 27001 compliant, and that client data is always secure and cannot be downloaded.
Removing recurring tasks helps develop people
Some UK Accounting Practices are nervous about outsourcing any service because of the perceived negative reaction among their people. However, the removal of deadline driven tasks from the day to day workload of accountants means they have more time to spend understanding the needs of clients and upselling services. Less time is spent on tasks such as contacting clients for missing information and data management, allowing individuals to focus on their continuing professional development and building the skills needed for the future growth of an Accounting Practice.
When is the best time to outsource personal tax services?
Accounting Practices will need to consider carefully the skills and expertise available to deliver personal tax services, particularly when preparing plans for growth or extending the scope of services offered to clients. The impact of regulatory changes, such as the government’s plans to implement Making Tax Digital for Income Tax Self-Assessment from April 2026, should also be considered.
Not all Accounting Practices will have sufficient capacity to meet the severe peak of work when HMRC’s submission deadlines are approaching. Some Practices see a rapid increase in the backlog of personal tax work between October and January each year, increasing the risk of fines and penalties from HMRC for missing deadlines. Practices should consider outsourcing at key stages in their business planning cycle, when taking on new clients or when a peak of work is expected each tax year.
What should I look for in an outsourcing partner?
UK Accounting Practices will need an outsourcing partner with the skills, capacity and experience to deliver effective personal tax services. Practices should look for a partner with a strong track record of serving the types of clients they engage, particularly where a personal tax situation is complex. You will need to ensure you have access to operational managers responsible for preparing SATRs to discuss any matters affecting your service and to seek opportunities to outsource other recurring tasks for your Practice.
Most importantly, Practices will need assurance the services are provided by professionally qualified and experienced tax specialists and accountants. Seeking references from existing customers of your outsourcing partner is essential to provide an indication of how your relationship will work.
Which personal tax services can be outsourced by an Accounting Practice?
The end to end process of preparing an SATR can be outsourced, including the preparation of Form SA100 for individuals, Form SA800 for partnerships and Form SA303 to reduce payments on account. Amendments to SATRs from prior tax years can also be outsourced.
Main features of Initor Global personal tax services
UK Accounting Practices gain many advantages by outsourcing personal tax services to Initor Global, leveling the playing field with larger competitors and freeing capacity to work on upselling services. We understand the complexities involved in preparing an SATR for your self-employed or company director clients requires dedicated, professional resources. Ensuring compliance with HMRC’s rules can be daunting, and penalties can be excessive if an SATR deadline is missed or incorrect information submitted to HMRC.
Our team of qualified tax specialists and accountants provide the SATR preparation services your clients need, with our rates typically 50% less than the equivalent service in the UK. All services are delivered to the highest professional and quality standards your Practice expects. Many of our accountants and tax specialists trained and worked for Practices in the UK.
We price our SATR preparation services based on the complexity of the work involved, from simple SATRs involving salary and dividends, through to the most complex where specialist tax advice, such as capital gains or foreign income, may be needed. Our services are completely flexible and can be scaled to meet your Practice growth plans or peaks of work.
If you are looking to take your Accounting Practice to the next level, and provide effective personal tax services while reducing costs, you can arrange a free consultation with our expert team.
We offer a free, no-obligation trial of our personal tax services.
Please contact us on hello@initor-global.co.uk or visit our website at initor-global.co.uk.
You can also call us on 0203 519 2121.