Use the online service to sign your client's business up for Making Tax Digital for Income Tax and find out what you'll need to do next.
Making Tax Digital for Income Tax is a new way of reporting earnings to HMRC. You’ll use software to keep digital records and send Income Tax updates for your client. You’ll do this instead of filing a Self Assessment tax return.
If you’re not an agent, there’s a different way to sign up your business for Making Tax Digital for Income Tax.
Before you start
Check if your client is eligible and how to follow the rules for Making Tax Digital for Income Tax.
Before you sign up your client, you must have:
- software that’s compatible with Making Tax Digital for Income Tax
- an agent services account - this is different to your HMRC online services for agents account
If your client is not authorised on your agent services account, you can either:
- copy your client’s existing authorisation to your agent services account
- ask the client to sign their own business up, then authorise you for Making Tax Digital for Income Tax
What you’ll need
To sign up your client, you’ll need their:
- business name
- email address
- National Insurance number
- Unique Tax Reference number
- accounting period
- accounting type such as cash basis or accruals
You’ll also need the Government Gateway user ID and password you got when you signed up for an agent services account.
Sign up your client
Online services may be slow during busy times. Check if there are any problems with this service.
After you’ve signed up your client
You’ll need to keep digital records of all your client’s business income and expenses.
Every 3 months you’ll use compatible software to send a summary of your client’s business income and expenses to HMRC. The software will tell you when to do this, you can also choose to send updates more often.
You’ll be able to see a year to date calculation of the tax your client owes at any time, based on the information you provide in the summary.
Send your client’s final declaration every year
At the end of your accounting period you’ll need to finalise your client’s business income and expenses. You’ll also be able to submit any personal income or reliefs they claim.
You’ll need to send your client’s final declaration and pay the tax they owe by 31st January of the following year. You can choose to pay the tax bill more regularly instead of waiting until the end of the year, but the deadlines for paying will stay the same.
The final declaration replaces the Self Assessment tax return. You’ll still need to send HMRC a Self Assessment tax return for the tax year before you signed up your client.
Contact your software supplier if you need help creating business records or sending updates.
If you have another query about Making Tax Digital for Income Tax, contact HMRC.