Making Tax Digital for Income Tax as an agent: step by step
If you're an agent, find out how to use Making Tax Digital for Income Tax for your clients.
This guide is also available in Welsh.
Making Tax Digital for Income Tax is a new way of reporting income and expenses if your client is a sole trader or landlord.
You and your client will need to use software that works with Making Tax Digital for Income Tax to:
- create, store and correct digital records of your business income and expenses
- send your quarterly updates to HMRC
- submit your tax return and pay tax due by 31 January the following year
Who needs to sign up
You and your client will need to use Making Tax Digital for Income Tax if all of the following apply. Your client:
- is an individual registered for Self Assessment
- gets income from self-employment or property, or both
- has qualifying income of more than £30,000
If their qualifying income is over £20,000 or they are an individual in a business partnership, they’ll need to use Making Tax Digital for Income Tax in the future. We’ll set out the timeline for these at a later date.
1. Work out your client’s qualifying income
Find out what is included in your client’s qualifying income for Making Tax Digital for Income Tax to check if they need to sign up.
2. Find out if and when your client needs to use Making Tax Digital for Income Tax
Check if your client needs to use this service to report their self-employment and property income, and use our online service to find out when they need to start.
3. Create an agent services account
You will need an agent services account to use Making Tax Digital for Income Tax. Find out how to create an agent services account with HMRC if you do not have one.
4. Get compatible software
Find out about the software options from different providers available for Making Tax Digital for Income Tax and how to choose the right software for your client’s needs. Remember to get authorised by your client first and connect your existing HMRC online services account to your chosen software.
5. Sign up your client for Making Tax Digital for Income Tax
Find out what tasks you need to complete before you sign up your client. This includes getting your client’s permission and authorisation. You will need to use your agent services account to get authorisation before you sign up your client for Making Tax Digital for Income Tax.
Use the online service to sign up your client for Making Tax Digital for Income Tax.
6. Use Making Tax Digital for Income Tax
Find out what you need to do after you have signed up your client and the different tasks you and your client need to do over the tax year. These include creating and storing digital records, sending quarterly updates and what to do if your circumstances change.
Updates to this page
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Added introduction to Making Tax Digital for Income Tax, re-ordered steps to make it clear agents need to sign into their agent account and added descriptions for each step.
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A new step 1 has been added to work out your client’s qualifying income. The steps to check if your client needs to use this service and when your client can sign up have been combined into step 2.
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First published.