Making Tax Digital for Income Tax
What accountants, agents and bookkeepers need to know
What Making Tax Digital means for your business
Do you have clients who are sole traders or landlords with combined turnover above £50,000 in 2024-25?
They, or you as their agent, will need to use compatible software to:
- create, store and correct digital records of self-employment and property income and expenses
- send quarterly updates to HMRC
- submit the tax return by 31 January the following year
What you need to do to get ready
Set up your agent services account
You’ll need an agent services account and an authorisation in place for your client. You can transfer existing Self Assessment authorisations or create a new authorisation.
Choose MTD-compatible software
Find MTD-compatible software that matches your business and supports your clients with their choice. Some clients may benefit from using more than one type of MTD software.
Sign up clients
Get your clients ready by signing up now. This will help you get used to the new process before it becomes mandatory.
Help and support
Check our agent toolkit
The agent toolkit contains resources and tools to help you get ready.
Register for tailored support
You can now get tailored support to prepare for MTD. Simply, register your interest to access interactive sessions with MTD specialists.
Keep your clients up to date
As agents, you’ll likely be the first point of contact for many client questions.
Help them prepare by sharing materials from HMRC videos and webinars and the HMRC resource hub.
You’ve probably got some questions
Can I continue to act for my clients using Making Tax Digital?
Yes, you can continue to represent your clients. You’ll need an Agent Services Account and compatible software.
What is the difference between a main agent and supporting agent?
Clients can appoint one main agent and multiple supporting agents, depending on their needs. HMRC allows for flexible roles, including:
- main agent – who can handle everything from quarterly updates to finalising the tax return and viewing penalties
- supporting agent – who can focus on keeping digital records and sending quarterly updates, but has less access than a main agent and cannot file a tax return
Both main and supporting agents can sign up clients to MTD.
Find out how to choose agents for Making Tax Digital for Income Tax.
I already use software to submit my client’s Self Assessment tax return – can I keep using this?
You can check if the software you use is included on the list of compatible software on GOV.UK.
What happens if my client misses a submission deadline?
We’re introducing points-based penalties to make things fairer. If your client misses a submission deadline, they get a penalty point. Get too many points and they’ll pay a fine.
The number of points depends on what submissions they are expected to send to HMRC each year.
Find out more on penalties for Making Tax Digital for Income Tax volunteers.
Can my client get an exemption?
Your client can apply for an exemption if they’re digitally excluded. This means it is not reasonable for them to use compatible software to keep digital records or submit them. As their agent, you can also apply on their behalf.
There are different reasons why this might apply but this could be because:
- their age, disability, health condition or location stops them from using a computer, tablet or smartphone
- they’re a practising member of a religious society or order, whose beliefs are incompatible with using digital communications or keeping digital records
If you think this might apply to your client, and they need to use MTD from April 2026, you should apply well in advance. Find out if you can get an exemption from Making Tax Digital for Income Tax.
There are also other types of exemptions explained in Find out if and when you need to use Making Tax Digital for Income Tax.
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