The introduction of Making Tax Digital (MTD) for Income Tax from April 2026 presents both a challenge and an opportunity for accountancy firms. With compliance requirements set to increase, firms must scale up their internal resources to manage additional workloads effectively. One of the most cost-effective and sustainable ways to achieve this is by recruiting accounting apprentices.
The role of accounting apprentices in strengthening internal resources
Accounting apprentices provide a valuable addition to an accountancy firm’s workforce. By training them in bookkeeping and the basics of taxation early on, firms can develop skilled professionals who are well-equipped to support clients transitioning to MTD for income tax, as well as wider MTD compliance and broader accounting tasks.
The AAT Level 2 and Level 3 accounting apprenticeships offered by Accountancy Learning are particularly well-suited to building these foundational skills.
At Level 2, apprentices gain proficiency in bookkeeping transactions, bookkeeping controls, and an understanding of the business environment. At Level 3, they progress to more advanced financial processes, including financial accounting and preparing financial statements, management accounting techniques and business awareness. These skills will be essential as firms adjust to the increased demands that MTD for Income Tax will bring.
By recruiting accounting apprentices to grow your in-house team, you will develop a reliable, qualified and experienced team without having to consider outsourcing or offshoring your bookkeeping and accounting functions overseas.
Key benefits of recruiting accounting apprentices now
With MTD for Income Tax on the horizon, accountancy firms should not leave it too late to recruit and train apprentices to be fully prepared by 2026. Here are the key benefits of recruiting accounting apprentices now:
Increased capacity to manage MTD compliance
From April 2026, MTD for Income Tax will require self-employed individuals and landlords with annual incomes of £50,000 or more to submit quarterly income and expense updates and file a final tax return ahead of the 31 January deadline. From April 2027, those earning £30,000 or more a year will be mandated to join the scheme, and sometime during the current parliament, the government has said that the new rules will apply to individuals with annual earnings over £20,000.
Communicating these changes to clients and managing their transition to the new system will create additional administrative and compliance work for accountancy firms. Recruiting accounting apprentices now means firms can develop their teams in time for the increased workload, ensuring they remain efficient and profitable.
Additional support to help clients get to grips with accounting packages
The move to MTD for Income Tax will see many clients adopt bookkeeping or cloud accounting packages such as Xero. When MTD for VAT was introduced in 2019, a similar uptake in accounting software was experienced. However, some clients struggled with understanding how the technology worked and how to use it correctly. This caused more work for accountancy firms, correcting errors and educating clients on how to use the software. MTD for Income Tax will likely create a similar issue, so firms that implement a strategy of recruiting accounting apprentices will have more qualified and experienced staff to handle these issues as they crop up.
Significant cost savings on employer national insurance contributions
Firms hiring apprentices under 25 years benefit from an employer National Insurance Contributions (NICs) exemption. This exemption can result in savings of up to £2,400 per apprentice per year compared to hiring a non-apprentice employee on a similar salary. This financial incentive makes recruiting accounting apprentices a cost-effective alternative to hiring non-apprentice staff.
Avoiding the 5% apprenticeship levy contribution
For employers with an annual payroll cost of less than £3 million, there is no requirement to pay the apprenticeship levy. SMEs are normally required to pay an employer contribution of 5% of the apprenticeship funding paid to the training provider. However, if an apprentice is aged between 16 and 21, this 5% employer contribution is waived, meaning firms can develop skilled employees at minimal expense.
Financial incentives for recruiting apprentices aged 16-18
If your apprentice is aged 16-18 when they commence their apprenticeship, the employer is entitled to a government incentive of £1,000. £500 is paid after 3 months employment and £500 after 12 months employment.
Long-term investment in future talent
Unlike short-term hires, apprentices are invested in learning and growing within the firm. By providing high-quality training through Accountancy Learning’s apprenticeship programmes, firms can develop accountants who understand their systems, clients, and values, helping to create a strong pipeline of future senior accountants.
Increased staff retention and loyalty
Apprentices who train with an accountancy firm are more likely to stay long-term, reducing recruitment costs and ensuring an ongoing stream of talent within the firm. A structured apprenticeship programme creates loyalty and commitment, leading to a more stable workforce and lower turnover rates.
Why choose Accountancy Learning for your apprenticeship needs?
At Accountancy Learning, we specialise in helping accountancy firms find, recruit, and train high-quality accounting apprentices with the right attitude and aptitude to develop into accounting stars of the future. Our AAT Level 2 and Level 3 apprenticeships provide a comprehensive learning experience that aligns with industry needs and will significantly help firms create a dynamic resource to support clients through the transition to MTD for Income Tax. We support employers with:
- Sourcing the right candidates for apprenticeship roles.
- Structured training and assessment, ensuring apprentices gain the essential skills needed for MTD compliance and beyond.
- Ongoing employer support, ensuring firms get the most out of their apprentices.
By working with Accountancy Learning, firms can ensure that their apprentices receive practical, industry-relevant training that prepares them to be valuable assets in the workplace.
Act now to future-proof your firm for MTD
With MTD for Income Tax approaching in April 2026, firms must prepare now to handle the increased workload efficiently. Recruiting accounting apprentices is a strategic move that brings cost savings, enhances internal capacity, and builds a strong foundation for the future.
If you’re an accountancy firm looking to scale up and prepare for MTD, contact Accountancy Learning today. We can help you find the right apprentices and train them to become skilled, reliable team members.
Take the first step towards future-proofing your firm and contact us on 01392 435349 or email [email protected].
