Don’t Lose Sole Trader Clients Over MTD for ITSA — Partner with a Bookkeeper

Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) is creeping closer—and for many accountants, it’s causing a quiet headache. If you don’t offer bookkeeping services, you might be wondering: How will I keep my sole trader clients compliant? Or worse—will I lose them altogether?

The good news? You don’t need to scramble to add bookkeeping to your services. You can protect your client relationships and keep delivering the services you enjoy—by partnering with a reliable bookkeeper.

MTD for ITSA: A Quick Recap

MTD for ITSA is HMRC's digital tax initiative for self-employed individuals and landlords. From April 2026 (for most), eligible sole traders earning over £50,000 will need to:

✅ Keep digital records of business income and expenses
✅ Use approved software to submit quarterly updates to HMRC
✅ Send an end-of-period statement and final declaration

It’s a big shift—especially for clients who’ve traditionally handed over a shoebox of receipts once a year.

The Challenge for Non-Bookkeeping Accountants

If you don’t currently offer bookkeeping, MTD for ITSA poses a risk:

• Clients may assume they need to switch to an all-in-one firm

• You could lose valued relationships simply because of a service gap

• You're left to untangle year-end accounts from messy, non-compliant records

But here's the reality: Not every accountant wants to do bookkeeping. And that’s OK.

The Smart Alternative: Partner with a Bookkeeper

Rather than stretch your practice beyond its comfort zone, consider teaming up with a trusted bookkeeper. It allows you to:

✅ Keep Your Clients

By referring them to a reliable bookkeeper for day-to-day records and MTD submissions, you stay involved for tax planning, accounts, and advisory work.

✅ Avoid the Hassle

You don’t need to invest in new software, train staff, or manage additional admin. The bookkeeper handles the MTD groundwork; you focus on high-value services.

✅ Strengthen Client Relationships

Your clients get a seamless, joined-up service—without the stress of finding someone themselves. You remain their go-to advisor.

✅ Future-Proof Your Practice

MTD isn’t going away. Partnering with a bookkeeper ensures your clients stay compliant, keeping your firm relevant and resilient.

What Makes a Good MTD Bookkeeping Partner?

Not all bookkeepers are created equal. Look for:

• MTD for ITSA-ready software skills (e.g., Xero, QuickBooks, Sage)

• A clear understanding of quarterly reporting requirements

• Good communication—keeping both you and the client in the loop

• A professional, reliable approach that reflects well on your firm

Building relationships with a few trusted bookkeepers gives you flexibility and confidence when referring clients.

It’s About Collaboration, Not Competition

Some accountants hesitate to partner with bookkeepers, fearing overlap or losing control. But in reality, a good bookkeeper isn’t your rival—they’re your ally.

Many bookkeepers don’t offer year-end accounts, tax returns, or business advisory. They want a reliable accountant to refer clients to—just as you want a reliable bookkeeper to refer clients to.

Protect Your Practice, Support Your Clients

MTD for ITSA isn’t just another compliance headache—it’s an opportunity to strengthen your practice through collaboration.

By partnering with a qualified bookkeeper, you can:

✔ Keep your sole trader clients compliant and supported
✔ Avoid adding unwanted services to your firm
✔ Focus on the high-value work you enjoy
✔ Build a stronger, more resilient client base

Want help getting your clients MTD-ready without taking on bookkeeping? Let's have a no-pressure chat about how Carr Accounting Studio partners with accountants like you.

Contact us.