Use Outsourcing to Implement Making Tax Digital for Income Tax (MTD IT)

Are accountants ready for MTD IT?

We asked webinar participants how prepared they felt to deliver MTD IT services. The results revealed a concerning lack of readiness:

• 54% were currently preparing a plan
• 25% were not ready at all
• 21% were on track to implement their plans
• None of the audience felt completely ready as of 16th July.

With only 1 in 5 accountants on track, many firms may struggle to meet the April 2026 deadline. Now is the ideal time to explore outsourcing options with Initor Global to ensure your firm is ready to serve clients under the new MTD IT regime.

Top Priorities for MTD IT Implementation

We also asked attendees what their biggest MTD IT priority was:

• 38% said pricing services appropriately
• 30% said finding appropriate software and technology
• 25% said client management
• 7% said capacity to deliver.

Outsourcing can help address all four priorities, especially when it comes to capacity and cost-effective service delivery. Proactively identifying clients who may struggle with digital record-keeping, and introducing a monthly subscription model, can ease client conversations about pricing and compliance.

Key Implementation Challenges for Accountants

MTD IT requires affected businesses to use compatible digital software to record income and expenses. Accountants involved in HMRC’s closed beta testing report that clients not using proper software need considerable support. To address this, accountants can use a number of strategies:

✅ Early onboarding of clients to basic cloud accounting or bookkeeping tools
✅ Educational support to explain digital compliance responsibilities
✅ Explaining the benefits of commercial software to support real-time information.

How Are Accountants Planning to Charge for MTD IT?

We asked accountants attending our webinar how they were planning to set fees for clients requiring MTD IT services. Our audience responded as follows:

• 14% – No fee increases planned
• 44% – Planning to increase fees up to 50%
• 28% – Planning increases of 51% to 100%
• 14% – Planning increases of over 100%.

With 86% of accountants planning fee increases, outsourcing is an effective way to manage costs and maintain service quality. Outsourced MTD support can help firms adopt a fixed-price or subscription model without overburdening internal resources.

Key Benefits of Outsourcing MTD IT Tasks

Partnering with an offshore accounting provider like Initor Global delivers many benefits:

✅ Compliance with HMRC requirements
✅ Reduced risk of penalties for late or incorrect submissions
✅ Lower operating costs and overhead
✅ Access to qualified professionals and skilled teams
✅ Consistent service quality and faster turnaround times
✅ Improved client satisfaction and retention