There are multiple top accounting outsourcing firms, like Corient, Equallto, and Affinity Outsourcing, that UK accountants and practices can consider for handling the MTD for Income Tax process on their behalf. The right option for you will depend on your bookkeeping needs, quarterly updates, HMRC submissions, software support, or a fully white-label service that works within your existing practice.
Picture yourself handling 120 Self-Assessment clients. Your team is handling the annual tax return cycle, and then MTD for Income Tax arrives. Instead of dealing with qualifying clients mainly at year-end, you are now required to manage digital records and quarterly updates throughout the tax year.
The first quarterly update deadline for the 2026/27 tax year was 7 August 2026, followed by 7 November 2026, 7 February 2027 and 7 May 2027 for standard update periods. That brings considerable workload pressure.
The question for many practices is no longer, “Are we ready for MTD?”
It is:
“Who is going to do all this work?”
You can build the capacity internally, ask clients to manage more of the process themselves, or work with an external provider. For practices already dealing with bookkeeping, VAT, payroll, year-end accounts and Self-Assessment, outsourcing MTD work can provide another way to create capacity without immediately expanding the permanent team.
Why Are Accounting Practices Looking for MTD Filing Support?
With the implementation of MTD for Income Tax, compliance requirements change completely.
Under Making Tax Digital, qualifying sole traders and landlords are required to use compatible software to store their digital records and send quarterly updates covering their income and expenses.
According to the UK Government, for the 2026/27 tax year, MTD applies from 6 April 2026 to individuals whose qualifying income was more than £50,000 in the 2024/25 tax year. The threshold then reduces to more than £30,000 for the 2027/28 tax year and more than £20,000 from 2028/29.
That means the potential workload is set to widen.
For any small accounting practice, four additional submission points per client can become a substantially complex workload.
Your accounting team will need to collect records, check the bookkeeping, resolve missing information, review figures, prepare the quarterly update and manage the process with the client.
That is where MTD outsourcing enters the picture. The cost of MTD outsourcing starts from £10 per client per month for basic fixed-price packages, while comprehensive outsourced bookkeeping and quarterly filing range from £50 to £350+ per month depending on transaction volume and client’s business size. (prices are subject to change)
Which Firms Handle MTD for Income Tax on Behalf of Accountants?
Several UK accounting outsourcing and specialist providers like Corient and Equallto now offer services around MTD for Income Tax, from digital bookkeeping and quarterly update preparation to HMRC submissions. The main difference is how much of the workflow they take on and whether they work as an extension of an accounting practice.
Corient
Corient provides MTD outsourcing specifically for UK accounting practices, covering both VAT and Income Tax. Its MTD service includes digital record-keeping support, quarterly Income Tax updates, HMRC submission support, software integration and ongoing monitoring. The service is delivered on a white-label basis, allowing the accounting practice to remain client-facing.
Corient also combines MTD work with broader bookkeeping, tax and accounting outsourcing. This can be useful when the MTD bottleneck starts with the underlying bookkeeping rather than the submission itself. Its listed software includes Xero, Sage, QuickBooks, FreeAgent, KashFlow, TaxCalc and TaxFiler.
Equallto
Equallto focuses on outsourced accounting and bookkeeping for smaller UK accounting practices. Its published content specifically discusses MTD compliance and says its services can help small practices manage MTD alongside day-to-day accounting work.
Equallto’s bookkeeping outsourcing service works with platforms including Xero, QuickBooks and Sage, while its broader model is designed around flexible capacity rather than requiring a practice to build every function in-house.
For a small practice, this can be particularly relevant where MTD work is creating additional bookkeeping, reconciliation and compliance workload.
Affinity Outsourcing
Affinity Outsourcing, we understand that managing MTD for VAT and ITSA can be time-consuming. Our MTD specialists handle everything: keeping digital records clean, preparing and submitting VAT returns, managing ITSA quarterly updates, and staying fully aligned with HMRC’s latest rules. The result? Smooth compliance without the late nights or last-minute scrambles.
Pacific Global Solutions
Pacific Global Solutions works with all the commonly used HMRC approved MTD compliant cloud software and can assist you in providing a smooth service for your clients throughout the entire process. We can ensure that you maintain complete control at every phase of the process. Our skilled team can help and advice, or even take over your record-keeping.
The Accountancy Partnership
The Accountancy Partnership offers MTD Income Tax quarterly update services as part of its accounting offering. Its published process includes requesting bookkeeping records, preparing quarterly updates and submitting the summaries to HMRC.
It also provides MTD-ready bookkeeping software and bookkeeping checks through its wider accounting packages.
| Provider | MTD for Income Tax / ITSA | MTD Services & Workflow | Accounting Practice Model | Key Strength |
| Corient | Yes | Digital record-keeping, quarterly Income Tax updates, HMRC submission support, software integration and ongoing MTD monitoring | White-label service for UK accountancy practices, with the practice remaining client-facing | MTD combined with bookkeeping, tax and wider accounting outsourcing |
| Equallto | MTD-related support | Bookkeeping, reconciliations, accounting tasks and MTD compliance support | Flexible outsourcing model for smaller UK accounting practices | Flexible capacity for practices managing additional MTD workload |
| Affinity Outsourcing | Yes | MTD-compliant software migration, digital record-keeping, VAT and Income Tax returns, quarterly reporting, digital linking and MTD training | Outsourced accounting services for UK accountants | Dedicated MTD workflow covering both setup and ongoing compliance |
| Pacific Global Solutions | MTD-related support | Works with HMRC-approved MTD-compliant cloud software and can provide record-keeping assistance and accounting support | White-label back-office services for accountants, bookkeepers and tax professionals | Flexible involvement, from advice and assistance to taking over record-keeping |
| The Accountancy Partnership | Yes | Quarterly Income Tax updates, bookkeeping records, preparation and HMRC submission of quarterly summaries | Managed accounting service | MTD-ready bookkeeping and quarterly update service |
What MTD Work Can You Actually Outsource?
You are not required to outsource the entire MTD process. You can divide the work according to where its internal capacity is strongest.
| MTD task | Can External Support Handle It? | What the Practice May Retain |
| Client onboarding | Yes | Client relationship and final decisions |
| Software setup | Yes | Software choice and oversight |
| Digital bookkeeping | Yes | Review and professional judgement |
| Bank reconciliation | Yes | Exception review |
| Record checks | Yes | Final review |
| Quarterly update preparation | Yes | Approval before submission |
| Quarterly HMRC submission | Depending on provider and authorisation | Oversight and client communication |
| Year-end tax preparation | Yes | Tax review and final sign-off |
| Client queries | Depending on agreed model | Technical/advisory conversations |
| MTD workflow monitoring | Yes | Practice-level supervision |
The important point is that outsourcing does not have to mean handing over the client relationship.
HMRC’s guidance confirms that an agent can act on a client’s behalf for MTD for Income Tax, with the agent using compatible software to manage the relevant process. Agents also need the appropriate authorisations and software connection in place.
Your practice can therefore define exactly where the external team’s responsibilities begin and end.
What Should You Check Before Choosing an MTD Provider?
There are multiple factors, such as its understanding of the process, compatibility with your software, offering of white-label service, and so on, that must be taken into consideration before you choose your MTD provider. Let’s understand what you need to check.
Does It Understand UK Accounting Practices?
A provider with an understanding of taxpayers might not be able to operate within an accounting practice. Therefore, ask about their understanding of their workflow, review structure, client ownership, and internal processes.
Can It Work With Your Software?
HMRC has made it compulsory to use compatible software for MTD for income tax. Check whether the provider already works with the platforms used by your clients. This can include Xero, QuickBooks, Sage, FreeAgent, TaxCalc and other relevant systems.
Who Controls The Submission?
This needs to be completely clear. Ask whether the provider prepares the update for your review, submits it on your firm’s behalf, or provides the completed information for your internal team to file.
Is The Service White-Labelled?
If you want the external team to operate as part of your practice, establish how client communication and branding will work.
What Happens When Something Does Not Reconcile?
MTD work rarely runs perfectly across every client. Ask how the provider handles missing records, unusual transactions, software problems and client queries.
How is The Work Checked?
Find out who prepares the work and who reviews it. A simple maker-checker process can provide an additional layer of control.
How Does MTD Outsourcing Work in Practice?
An MTD outsourcing service provider will work with you by identifying your clients, assessing workload, determining which tasks to outsource, reviewing the process, and measuring results. Let’s understand these steps in detail.
Step 1: Identify Affected Clients
Identify and separate clients who are required to follow the MTD for Income Tax directives.
Step 2: Assess the Workload
Calculation will be done as to how many quarterly updates your team will need to manage and how much preparation each client requires.
Step 3: Decide What Stays Internal
Make sure to keep complex tasks in-house, like professional judgement, complex tax decisions and important client conversations, so that your best people can handle them.
Step 4: Delegate Repeatable Work
Outsource repeatable and time-consuming accounting work, like bookkeeping, reconciliation, and preparation and submission tasks, to the external team.
Step 5: Create a Review Process
Set clear deadlines for preparation, review and submission.
Step 6: Measure the Result
Keep track of the tasks outsourced by keeping a tab on turnaround time, review corrections, missed information and internal hours saved.
This gives you evidence about whether outsourcing is actually creating capacity.
Why Corient Can Be Considered for MTD Outsourcing
For accounting practices that want to keep their client relationship in-house while adding production capacity, Corient offers an outsourcing model built around existing practice workflows.
Its MTD service covers VAT and Income Tax support, including quarterly Income Tax updates, and the company says its teams can work with major UK accounting platforms including Xero, Sage and QuickBooks.
Corient’s wider tax outsourcing service also covers personal tax and Self-Assessment work, allowing practices to consider MTD within a broader tax workflow rather than treating it as a standalone filing task.
That distinction matters.
If the underlying bookkeeping is incomplete, simply outsourcing the submission does not remove the bottleneck.
A broader team can potentially take care of the preparation work that needs to happen before the submission.
People Also Ask
Who can file MTD for Income Tax on behalf of an accountant?
An accounting practice can appoint or use an agent arrangement to act on behalf of its clients, provided the required authorisations, compatible software and HMRC processes are in place. External outsourcing providers can work as part of that practice’s workflow, depending on the agreed responsibilities and access arrangements.
What do accountants charge for MTD?
Accountants typically charge between £25 and £200 per month (£300 to £800+ annually) for Making Tax Digital (MTD) services, depending on the level of bookkeeping and business complexity. These charges are subject to change.
Is MTD based on turnover or profit?
Making Tax Digital (MTD) for Income Tax is based on turnover (gross income), not profit. HMRC checks if you must join MTD by looking at your total income from self-employment and property before you deduct any expenses, costs, or allowances. MTD applies from 6 April 2026 to individuals whose qualifying income was more than £50,000.
Who is automatically exempt from MTD?
As of 2026, exemption from Making Tax Digital (MTD) for Income Tax is applicable if your income is below the threshold of £50,000 or you fit specific official categories, meaning you do not need to apply or contact HMRC. But this threshold will reduce in the coming years.
Conclusion
MTD for Income Tax is no longer something UK accounting practices can treat as a future project. It’s the reality. The first quarterly deadline has already passed, and more clients will enter the regime as the qualifying-income threshold falls from £50,000 to £30,000 and then £20,000.
The practical question is therefore not simply whether your software is MTD-ready.
Is your practice’s workflow ready?
If your team can manage the additional quarterly workload comfortably, you may choose to keep the process in-house. However, if MTD is creating more bookkeeping, checking, client chasing and submission work than your existing team can absorb, then outsourcing must be explored.
Corient works with UK accounting practices to provide MTD support across VAT and Income Tax, including quarterly Income Tax updates, within existing practice workflows. If MTD is adding another layer of recurring work to your practice, contact us to build additional capacity around your existing team.
