MTD for ITSA - UK Accountants: Go Digital with Affinity Outsourcing
As the 2026 rollout of Making Tax Digital for Income Tax Self-Assessment (MTD for ITSA) approaches, accountancy firms across the UK are preparing for a fundamental shift in how they support self-employed clients and landlords. But while compliance is a top priority, many firms are asking an important strategic question:
How can we meet the demands of MTD for ITSA, without increasing internal pressure, hiring costs, or operational complexity?
For many, the answer lies in outsourcing.
What Is MTD for ITSA?
MTD for ITSA is HMRC’s next major step in its digital transformation agenda. From April 2026, self-employed individuals and landlords with income over £50,000 will need to:
- Maintain digital records
- Submit quarterly income and expense updates via MTD-compliant software
- File an annual End of Period Statement and Final Declaration
From April 2027, the threshold will lower to £30,000.
What Challenges Will Accountants Face?
MTD for ITSA represents a significant workload increase, not just in volume, but in frequency and complexity.
Quarterly Submissions = More Frequent Deadlines
Most accountants are used to annual cycles. MTD shifts this to a 5-report-per-year model per client, meaning hundreds (or thousands) of extra deadlines annually.
Digital Transformation Pressure
Even tech-savvy firms will need to spend time:
- Helping clients move to MTD-compliant cloud software
- Educating them on new processes
- Ensuring ongoing digital record-keeping
Increased Admin, Reduced Bandwidth
The time required to monitor submissions, provide support, and manage tech issues can drain in-house resources, especially for firms trying to scale or retain advisory focus.
Why Outsourcing Is a Smart Move for MTD
Outsourcing doesn’t just help manage extra volume; it allows practices to scale efficiently while keeping overheads lean.
Scale Without Hiring
Outsourcing provides instant access to trained bookkeeping and tax support staff, no recruitment, onboarding, or payroll costs involved.
Improve Turnaround Times
With a dedicated outsourced team handling MTD-related tasks (like record-keeping, submission prep, and reconciliations), firms can reduce delays and focus more on advisory.
Reduce Overhead, Increase Capacity
Rather than overstretch internal teams or bring on costly headcount, outsourcing allows you to expand capacity on demand and only pay for what you need.
What Can You Outsource for MTD for ITSA?
Here are some of the key services UK firms are now outsourcing ahead of 2026:
| Outsourced Service | Benefit |
|---|---|
| Digital Bookkeeping | Stay MTD-compliant without straining internal staff |
| Quarterly Submission Support | Reduce admin burden and avoid deadline pressure |
| Cloud Software Setup | Get clients quickly set up with MTD-ready tools |
| Client Support & Communication | Offload routine support and focus on value-added work |
Why Work with Affinity Outsourcing?
As an established outsourcing partner for UK accountancy firms, Affinity offers:
- UK-trained bookkeeping and tax professionals
- Seamless cloud integration (QuickBooks, Xero, FreeAgent, etc.)
- Flexible packages to match your MTD client volume
- Transparent pricing, dedicated resource, and 100% data security
Whether you're preparing for 2026 or already adjusting to earlier phases of MTD, we help you scale up without scaling your team.
MTD for ITSA is a major operational shift — and with the right outsourcing partner, it’s also an opportunity: to grow, to adapt, and to modernise how you deliver value.
Let’s Make Tax Digital, without the headache.