Accountants have been working hard to identify taxpayers affected by Making Tax Digital for Income Tax (‘MTD IT’) and communicate the government’s requirements to them. However, many are not taking the opportunity to look critically at the way personal tax work is delivered now (and in 2025) to make the most of the new MTD world. 

Accountants with self-employed and landlord clients who do not maintain digital records will need to invest time and resources in getting them up to speed with the government’s requirements, ensuring they are prepared for HMRC’s implementation deadline of April 2026. Taking time to introduce such clients to simple bookkeeping or accounting software to record income and expenses in advance of April 2026 will help prepare for MTD IT, though challenges may remain to ensure records are maintained accurately and on time.  

As accountants contact clients to progress personal tax work, it is worthwhile encouraging them to become fully digital well in advance of April 2026.  

Get your Practice ready for MTD ITSA 

With MTD workflows in place for submitting VAT returns each quarter, accountants can start testing those workflows for MTD IT clients. In the lead up to April 2026, accountants can remind clients of the importance of maintaining records using appropriate software and identify any clients struggling to comply with the new MTD IT regime. Such clients may require additional services such as bookkeeping or advice to ensure information is up to date and accurate.  

Accountants can also support clients by offering online learning tools or ‘how to’ guides to ease the transition to the new MTD world. 

Of course, providing additional services requires a review of fees and pricing. Accountants may seek to introduce monthly subscription-based fees for clients to spread the cost of personal tax work throughout the tax year.  

How outsourcing can help 

The accounting profession is undergoing significant changes, driven by advancements in technology and shifts in client expectations. Accountants are expected to provide more value-added services beyond traditional bookkeeping and tax work. The new world of MTD offers opportunities for accountants to provide real-time insights, tax forecasting, and strategic advice to affected clients. To meet these changing needs, accountants need to be agile and innovative. 

This is where outsourcing comes into play. By leveraging the capabilities of outsourcing partners, you can streamline and augment your services, make your operations more efficient, and make sure you stay competitive. Whether it’s accessing a global talent pool, reducing overhead costs, widening the scope of services you offer to clients, or improving turnaround times, outsourcing presents many opportunities for growth and innovation. 

By Robert Grant FCCA 

Robert Grant is Head of Customer Experience at Initor Global UK, one of Capium’s strategic partners. Initor Global provides outsourced services to over 100 UK accountants and businesses. If you are an accountant looking to outsource services, you can book a video call with one of Initor Global’s expert advisors using this link or send an email to hello@initor-global.co.uk.   

Initor Global offer a free trial of up to 10 hours of accountant time or completion of two self-assessment tax returns regardless of complexity and promise to turn your trial work around within 72 hours. 

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In the constantly shifting terrain of Anti-Money Laundering (AML) regulations, accountants and bookkeepers find themselves traversing a jungle teeming with risks. Just as in the wild, some clients resemble lions, while others resemble frogs. Understanding how to manage both high-risk lions and low-risk frogs is crucial for ensuring compliance and safeguarding against financial crime. 

Identifying the Lions and Frogs 

In this jungle, our lions represent high-risk clients. They possess characteristics that make them potentially more susceptible to money laundering or terrorist financing activities. These characteristics might include complex ownership structures, involvement in high-risk jurisdictions, or operating in industries prone to financial crime. 

Conversely, our frogs embody low-risk clients. They typically exhibit straightforward financial behaviour, have transparent ownership structures, and operate within low-risk jurisdictions and industries. 

Taming the Lions: Managing High-Risk Clients 

Encountering a lion in the jungle can be daunting, but with the right tools and strategies, it’s possible to mitigate the risks they pose. Firstly, robust customer due diligence (CDD) processes are essential. This involves thoroughly researching and verifying the identity of high-risk clients, understanding their business activities, and assessing the source of their wealth. 

Furthermore, implementing enhanced due diligence (EDD) measures is akin to strengthening the perimeter around your campsite. This may involve ongoing monitoring of transactions, conducting regular reviews of the client’s activities, and scrutinising any unusual patterns or red flags. 

Just as a lion tamer establishes boundaries and controls within the circus ring, instituting transaction monitoring systems and suspicious activity reporting mechanisms can help detect and prevent illicit financial activities. Additionally, establishing clear policies and procedures, coupled with robust staff training, ensures that everyone in the institution is equipped to handle high-risk clients effectively. 

Embracing the Frogs: Managing Low-Risk Clients 

While encountering a lion demands caution and vigilance, encountering a frog offers a sense of security. Low-risk clients may not pose the same level of threat, but that doesn’t mean they should be overlooked. Instead, accountants and bookkeepers should adopt a risk-based approach, focusing resources where they are most needed. 

For frogs, simplified due diligence (SDD) procedures may suffice. These streamlined processes allow for quicker onboarding and reduce administrative burdens, without compromising compliance standards. However, it’s important to periodically review the risk profile of even low-risk clients to ensure that they haven’t undergone any significant changes that might elevate their risk status. 

Navigating the Jungle: Striking the Balance 

In the jungle of AML risk management, accountants and bookkeepers must strike a delicate balance between caution and efficiency. While lions may pose a greater threat, effective mitigation measures can minimise the risks they present. Conversely, while frogs may seem harmless, prudent oversight is necessary to maintain compliance standards. 

Just as a skilled navigator relies on a compass to chart their course through the wilderness, accountants and bookkeepers must rely on robust risk assessment frameworks and regulatory guidance to guide their AML efforts. By understanding the unique characteristics of high-risk lions and low-risk frogs, and implementing appropriate risk management strategies, institutions can navigate the jungle of AML risk with confidence. 

With this strategic approach, accountants and bookkeepers can effectively manage the diverse array of clients they encounter in the AML landscape, ensuring compliance while mitigating the risks posed by both lions and frogs alike. 

Read about Capium’s AML.

By Sujay Patel, The IAB 

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