ICB has announced a new partnership between ICB and Xero to support bookkeepers in getting everything in place for Making Tax Digital for Income Tax (MTD IT).
In a live broadcast, ICB’s Chief Executive Ami Copeland sat down with Xero’s UK Managing Director Kate Hayward to talk about what this means for our community – and how bookkeepers are perfectly placed to lead small businesses through this huge change.
With the government’s MTD IT rollout on the horizon, there’s a lot of noise and understandably, some worry. But as Ami said, ICB bookkeepers are already doing the kind of regular, high-quality work that MTD requires. This partnership is about making sure you have all the tools, knowledge and support you need to confidently guide your clients through what’s next.
Kate shared some powerful stats that show the size of the opportunity ahead. More than one million sole traders in the UK still aren’t using accounting software. Of those not currently working with a professional, around half say they’d turn to a bookkeeper or accountant for support. That’sa huge potential client base – and a clear sign that bookkeepers will be in high demand as MTD IT takes effect.
Of course, there are challenges too. Even among current Xero users, adoption of key features is still relatively low – only 40 percent use bank feeds and just 31 percent are using document capture tools. Kate pointed out that many small business owners are unsure about digital tools or worried about sharing bank data, which is where bookkeepers come in. You’re already their most trusted advisors, and you’re uniquely placed to guide them through these changes with empathy and know-how.
To support you, Xero has launched a brand new MTD IT toolkit, packed with email templates, educational webinars, and practical guides to help you prepare your clients. They’ve also released Xero Simple – a new product specifically designed for sole traders and landlords, offering all the essentials at a cost-effective price point.
Ami and Kate also talked about the power of collaboration. With multi-agent access now available from HMRC, bookkeepers can submit quarterly updates even without a tax qualification – working hand-in-hand with accountants to deliver a seamless service for clients. Whether you’re doing it yourself, co-working with an accountant, or supporting clients directly, the message is clear: we’re all in this together.
Looking ahead, Kate acknowledged that automation and AI will change how some tasks are done – but she was very clear that this won’t replace the value bookkeepers bring. Instead, it creates space for you to offer even more insight and advice. The deep, trusted relationships you have with clients can’t be automated, and that’s what will continue to set you apart.
Ami summed it up perfectly: “Bookkeepers have always been the key to MTD – not just because it rhymes, but because it’s true.” With Xero and ICB working closely together, we’re confident this partnership will help our members feel ready, supported and excited for what’s next.
If you’re a Xero partner, check out the new toolkit on Xero Central. If you’re not yet a partner, now’sa great time to explore what’s on offer. And if you want to get ahead, consider signing up for the MTD IT public beta and start testing your end-to-end process.
Together, we’re ready to lead this change – and make MTD work for everyone.
