Accountants are already bracing themselves for the inevitable surge in self-assessment work between October and January. Some are already thinking about what lessons have been learned in previous years to ensure this year’s workload is manageable and the risk of fines or penalties for clients avoided. Regardless of the action taken to smooth the flow of information from clients and to streamline accountants’ work, many will find themselves working long and unsocial hours in the lead up to 31 January.
With workloads spiking and resources stretched, and the introduction of Making Tax Digital for Income Tax, it’s no surprise that many accountants are turning to outsourcing to help manage this extreme peak of work.
Here are the top reasons accountants are making the switch.
Reduced costs and improved margins
The cost of outsourcing tax and accounting services is typically 50% less when compared to the equivalent provided in-house. With an outsourced solution there are no direct costs of employment and additional resources can be brought in immediately as deadlines are looming. Accountants only pay for the services they need and there is no need to negotiate with staff to work additional hours.
Outsourced accountants will usually offer fixed prices for the duration of the personal tax season, supporting variable pricing strategies and delivering better margins as HMRCs 31 January deadline approaches. This makes outsourcing services a cost-effective solution.
Access to UK Tax Specialists
With an outsourced solution, there is no need to maintain a large in-house team of tax specialists. Expertise in HMRC rules and self-assessment requirements is provided by the offshore accountant who is focused on delivering personal tax work. This helps improve the accuracy of tax calculations, with an increase in the quality of work and better turnaround times.
Many accountants rely on a small team working tirelessly to achieve HMRC’s deadlines for filing tax returns. Reliance on a small number of in-house specialists presents a high risk of service failure should individuals leave at short notice, and if a suitably qualified or experienced replacement cannot be found. With an outsourced solution, accountants have access to a team of experienced personal tax specialists who can provide the continuity of service needed.
Scale Up or Down Easily
Scaling personal tax work up or down takes time when full-time accountants deliver services. Investment in technologies such as Artificial Intelligence, cloud accounting and automation of tasks means accountants can outsource personal tax work quickly without taking on the additional risk and costs of direct employment. When the peak of work is over, contracts with an outsourced supplier can be ended in a structured way.
Accountants can also choose to access offshore capacity as and when they need it by using a fixed price per return 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 cost and risk of employing temporary accountants.
Free Up Time for Tax Advisory Work
One of the biggest benefits from outsourcing personal tax work is time. By outsourcing routine tasks to prepare self-assessment returns, accountants can focus on strategy, client relationships, and growing the business. Undertaking a critical review of internal resources and comparing to the capacity needed to deliver personal tax services to support future growth will quickly identify shortfalls which need to be managed.
Scale Up or Down Easily
Scaling a practice up or down takes time when services are delivered by full-time staff. Investment in technologies such as Artificial Intelligence, 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.
Free Up Time for Tax Advisory Work
One of the biggest benefits from outsourcing personal tax work is time. By outsourcing routine tasks to prepare self-assessment returns, accountants can focus on strategy, client relationships, and growing the business. Undertaking a critical review of internal resources and comparing to the capacity needed to deliver personal tax services to support future growth will quickly identify shortfalls which need to be managed.
Access to Advanced Tax Technology
Many outsourcing companies invest in specialist tax software and offer secure online platforms for document sharing and tracking. Onshore accountants benefit from these tools without having to bear the upfront cost. The best outsource partner can prepare records and transfer data in real-time using cloud -based tax software, increasing confidence in the accuracy of tax calculations.
Improve Client Experience
Accountants often seek to increase the number of personal tax clients through competitive pricing, though overlook opportunities to provide deeper insight and advice. By outsourcing the preparation of self-assessment tax returns, accountants can create additional capacity for more direct contact which adds value to the client relationship.
With faster turnaround times and additional support, accountants can respond to client queries more quickly and deliver tax returns well ahead of deadlines – boosting client trust and satisfaction.
Final Thoughts
Making Tax Digital for Income Tax will be implemented from April 2026. Many accountants are reviewing the way they contact clients and collect information in advance of the deadline. Working with an outsourcing partner can help build the capacity needed to spend more time with clients and prepare them for this major regulatory change.
Initor Global: Your Offshore Accounting Partner
While outsourcing personal tax work usually secures immediate cost-saving benefits, many accountants discover broader value – from scalability and access to talent, to improved service delivery.
At Initor Global, we specialise in helping accountants streamline operations and scale through professional, affordable offshore accounting solutions. Our experts deliver high-quality:
- Self-assessment tax return services
- Making Tax Digital (MTD) for Income Tax solutions
- Tax Professionals on demand.
We offer a free trial of our self-assessment tax return services. We will prepare two returns within 72 hours before entering into any contract.
Whether you’re just exploring outsourcing or looking to expand your offshore strategy, we’re here to help.
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