A UK practice can usually find the work. What it cannot always find is the person to prepare it. A senior leaves in spring, the vacancy runs into the autumn, and the reviewers who should be reading finished accounts are reconciling Xero files late on a Friday. This article looks at one specific use of an offshore team in India: preparing year-end accounts and VAT working papers on Xero, under your supervision, so that your own people spend their hours on review and advice. It describes a documented capacity pressure. It does not suggest that any particular practice is in difficulty.
- ICAEW's 2026 mid-tier research: 46% of responding firms still rank recruiting qualified staff among their three biggest talent challenges (67% in 2024). The pressure has eased from its peak but not gone.
- A 2026 industry survey reported by Accountancy Today found 73% of firms turning away work for want of qualified staff. Treat it as a signal; its methodology is thinly described.
- Year-end production is deadline-driven: nine months for Companies House accounts, twelve for the Company Tax Return, nine months and one day for Corporation Tax payment, and one month and seven days for each VAT return.
- From April 2028 all companies must file accounts in iXBRL using commercial software. The profit and loss filing requirement for small and micro-entities has been paused (GOV.UK, 23 October 2026).
- Offshore teams suit preparation: reconciliations, schedules, trial balances and VAT workings. Judgement, sign-off and every filing stay with your practice.
- Client data sent to India is a restricted transfer under UK GDPR. Settle the route first, then pilot on a few files.
1. What the staffing data show
There is no single official count of unfilled seats in UK accountancy, so it is safer to read several sources together and note who produced each.
| Indicator | Finding | Source and caveat |
|---|---|---|
| Recruiting qualified staff as one of three biggest talent challenges | 46% of firms in 2026, down from 67% in 2024 | ICAEW, Evolution of Mid-Tier Accountancy Firms 2026. 35 of 110 firms responded |
| Firms expecting to increase offshoring | 40%, against 29% expecting to increase outsourcing | Same ICAEW research. Intentions of mid-tier firms, not a market count |
| Firms turning away work for want of qualified staff | 73% | Global Accounting Talent Index, reported by Accountancy Today, 22 June 2026. 500 accountants across the UK, Canada, Australia and the US; methodology not described in the report |
| Firms that believe they could grow faster with more experienced staff | 71% | Same report |
Two cautions. ICAEW's own figures show talent pressure falling from 2024, and the sample is small. The industry index is multi-country and does not publish how it was built. What the sources have in common is a reading that qualified people remain hard to find, which is why more practices are testing offshore support. We looked at the same pressure from the MTD angle in our article on the UK staffing crisis, and at the operating model in how to build an offshore bench.
2. The year-end and VAT calendar
Year-end work bunches around fixed dates. The table gives the standard rules for a private limited company, as stated on GOV.UK. Check each client's own dates, because accounting periods and VAT stagger vary.
| Obligation | Standard deadline | Preparation window to plan for |
|---|---|---|
| Companies House annual accounts | 9 months after the financial year end | Trial balance and schedules ready in the first 6 to 8 weeks after year end |
| Company Tax Return | 12 months after the Corporation Tax accounting period ends | Computation working papers after the accounts are approved |
| Corporation Tax payment | 9 months and 1 day after the accounting period ends | Tax estimate agreed with the client before the date |
| VAT return and payment | Usually 1 calendar month and 7 days after the VAT period ends | Workings ready within about 10 working days of period end |
VAT registration is a separate trigger. GOV.UK says a business must register if taxable turnover for the last 12 months goes over GBP 90,000, or if it expects to exceed that figure in the next 30 days alone. A practice with a growing set of start-up clients needs someone watching turnover monthly, and this is a good task for a documented checklist.
3. What to prepare offshore and what to keep
An offshore team adds production capacity. It does not replace the person who signs. The split below is a starting point to adapt to your own risk appetite and engagement letters.
| Task | Offshore team | Your practice |
|---|---|---|
| Bank, card and loan reconciliations in Xero | Prepare to checklist; list exceptions | Review exceptions |
| Coding and bank rules | Apply agreed rules; query unclear items | Approve rule changes |
| Accruals, prepayments, fixed asset register | Prepare schedules with supporting references | Review judgements and policies |
| Draft trial balance and accounts working file | Assemble and reconcile to ledgers | Adjustments, disclosures, sign-off |
| VAT workings | Prepare workings from ledgers with a variance note | Review, discuss with client, file |
| Corporation Tax computation | Prepare adjustment schedules where your firm decides to delegate | Tax positions, computation review, filing |
| Client calls, advice, HMRC and Companies House correspondence | Not suitable | Always |
4. Setting up Xero for a clean hand-off
Most review time is lost to files that were never set up for someone else to work on. A few habits make a large difference.
- Give each offshore user a named Xero login with the least access needed. Avoid shared credentials, and agree how you will remove access the same day if needed.
- Write a one-page client brief: year end, VAT scheme and period, bank accounts, usual suppliers, recurring journals, and anything unusual.
- Agree a coding policy and bank rules in writing, with a named person who can approve changes.
- Use a standard query log so that unclear items reach your reviewer in one batch, not as scattered emails.
- Lock prior periods once reviewed, so that preparation work does not alter figures already signed off.
The same discipline applies on other platforms. Our month-end calendar for QuickBooks Online shows how review gates can sit between preparation steps.
5. Worked example: 60 limited-company clients
Facts (illustrative). A UK practice prepares annual accounts and VAT returns for 60 small limited companies, 40 of them VAT-registered on quarterly periods. One senior seat has been vacant for several months. The practice estimates 6 hours per set of accounts for preparation, 1.5 hours for review and sign-off, and 1.5 hours per VAT return, of which 1.0 is preparation.
| Item | Calculation | Result per year |
|---|---|---|
| Accounts preparation hours | 60 x 6.0 | 360 hours |
| Accounts review hours | 60 x 1.5 | 90 hours |
| VAT preparation hours | 40 x 4 returns x 1.0 | 160 hours |
| VAT review and filing hours | 40 x 4 x 0.5 | 80 hours |
| Total in-house workload | 360 + 90 + 160 + 80 | 690 hours |
| Preparation that could move offshore | 360 + 160 | 520 hours |
| Review and filing kept in-house | 90 + 80 | 170 hours |
Plan. Pilot 12 clients with tidy Xero files across one full year-end cycle and two VAT quarters. A named reviewer holds protected time. Log review points by type and reviewer minutes per file. Add clients only if both measures fall. If they do not, fix the checklist or the client brief before adding volume. These hours are assumptions to show the method; your own time records will differ.
6. Companies House changes to plan for
GOV.UK states that from April 2028 all UK registered companies must file accounts in iXBRL format using commercial software, whether they file themselves or use an accountant, and that the web and paper services for accounts will close. The reforms were originally planned for April 2027. A 23 October 2026 update says the government has paused the requirement for small companies and micro-entities to file profit and loss accounts, that abridged accounts can continue, and that smaller companies can still remove profit and loss information from accounts filed at Companies House after 1 April 2028. The same update lists a strengthened eligibility statement for companies claiming audit exemption, a rule that component parts of accounts be filed together and a limit on how often an accounting reference period can be shortened.
For a practice, the practical point is software readiness. Whoever prepares the working papers should work in a way that flows cleanly into your accounts production software. Decide that now, since the new rules apply to accounts filed after the cut-over date.
7. Data transfer and engagement terms
Sending client personal data to a team in India is a restricted transfer under UK GDPR. The ICO's guidance sets out the order: check whether adequacy regulations cover the destination, otherwise use an Article 46 safeguard such as the International Data Transfer Agreement or the UK Addendum, and complete a transfer risk assessment. Our article on UK GDPR Article 28 and the IDTA goes through the steps in more detail.
A well-run engagement should also record, in writing: named-user access with multi-factor authentication, confidentiality terms, sub-contractor limits, breach notification timing, return or deletion of data on exit, and a statement that your practice remains responsible for what is filed. We do not describe any control as in place until it has been documented and tested; ask any provider, including us, to show the document rather than describe it. Take advice from your data-protection adviser on your own position.
8. Pilot checklist
- You have sized the gap in hours by client and task, using your own time records.
- You have decided which tasks stay in-house, and the engagement letter wording reflects it.
- A restricted-transfer route is documented: adequacy check, IDTA or Addendum, and a recorded risk assessment.
- Clients have been told, in the engagement letter or privacy notice, that a provider outside the UK may process their data.
- Xero users are named, access is the minimum needed and removal is possible the same day.
- Each pilot client has a one-page brief, a coding policy and a query log.
- A named reviewer has protected time each cycle.
- Success measures are agreed: review points per file, turnaround days and reviewer minutes per client.
- All filings continue to be made by your practice under its own authorisations.
- The provider is a registered entity. For a Chartered Accountants firm in India, check the ICAI firm registration number.
9. Frequently asked questions
Why are UK practices looking at offshore accounting support?
The published evidence points to a capacity squeeze. ICAEW's 2026 mid-tier research found that recruiting qualified staff was still one of the three biggest talent challenges for 46% of responding firms, down from 67% in 2024. A separate 2026 industry survey reported by Accountancy Today found 73% of firms turning away work because of a shortage of qualified staff. Both are indicators of sentiment, not a national vacancy count.
What accounting work can an offshore team prepare on Xero?
A well-run offshore team can prepare bank and card reconciliations, coding to agreed rules, accrual and prepayment schedules, fixed asset registers, a draft trial balance and VAT workings, all to a written checklist. Your practice keeps client contact, judgement, review, sign-off and every submission to Companies House and HMRC.
Who is responsible for the accounts and returns that are filed?
Your practice and the client's directors. The offshore team prepares working papers under your supervision. Nothing in this model moves responsibility for the accounts, the Company Tax Return or the VAT return away from the people who sign and file them.
What are the filing deadlines a year-end workflow has to hit?
For a private limited company, GOV.UK gives nine months after the financial year end for Companies House accounts, twelve months after the Corporation Tax accounting period for the Company Tax Return, and nine months and one day for Corporation Tax payment. A VAT return and payment are usually due one calendar month and seven days after the end of the VAT period.
What is changing for Companies House accounts filing?
GOV.UK states that from April 2028 all UK registered companies must file accounts in iXBRL format using commercial software, and that the web and paper services close on that date. A 23 October 2026 update also says the government has paused the requirement for small and micro-entities to file profit and loss accounts, and that abridged accounts can continue.
Can we send UK client data to a team in India?
It is a restricted transfer under UK GDPR, so you need a valid route before any personal data moves. The ICO's guidance sets out the order of steps: check adequacy, otherwise use an Article 46 safeguard such as the IDTA or the UK Addendum, and complete a transfer risk assessment. Take advice from your data-protection adviser on your own position.
How should a practice start?
Pilot with a small group of clients that have clean Xero files, a named reviewer with protected time and a written checklist. Track review points per file and reviewer minutes per client, and add volume only when those numbers fall. Hours vary by client, so size your own gap before committing.
Will an offshore team certainly close our capacity gap?
No. Results depend on scope, documentation, software set-up, reviewer time and client mix. The data in this article describe market-wide pressure and do not predict the position of any individual practice.
10. Sources
- ICAEW, Evolution of Mid-Tier Accountancy Firms 2026 (35 of 110 firms responded): icaew.com
- Accountancy Today, "73% of firms turn away work due to staff shortages, study finds", 22 June 2026: accountancytoday.co.uk
- GOV.UK, Companies House update to accounts filing from April 2028 (23 October 2026): gov.uk
- GOV.UK, Using software to file your company's information (software-only filing from 1 April 2028): gov.uk
- GOV.UK, Prepare and file annual accounts for a limited company (nine and twelve month deadlines; Corporation Tax payment): gov.uk
- GOV.UK, Sending a VAT Return (one calendar month and 7 days): gov.uk
- GOV.UK, Register for VAT (GBP 90,000 test): gov.uk
- ICO, How do we comply with the transfer rules if we are initiating the restricted transfer?: ico.org.uk
Somesh Chandak & Associates, Chartered Accountants (FRN 158694W), Thane, supports accounting practices abroad with bookkeeping, reconciliations and month-end close on Xero and QuickBooks Online. We can walk through scope, workflow and the documents your practice will need before any client data moves.
Outsourced Bookkeeping for Foreign Firms Talk to usThis article is for general information for accounting professionals and is not legal, tax or data-protection advice. Survey figures reflect the cited publishers' samples and methods. Rules and dates were checked against the cited sources on 5 November 2026; confirm them again before relying on them.