MTD income tax is being phased in for taxpayers with income from self-employment and/or property from April 2026. It is possible for taxpayers to sign up for MTD income tax earlier on a voluntary basis. Learn more about MTD income tax at ICAEW’s MTD hub.
The role of agents
Taxpayers within MTD income tax can manage their own tax affairs or appoint an agent or agents to help them. Depending on their circumstances, a taxpayer may wish to appoint:
- a main agent only;
- a main agent and any number of supporting agents; or
- a supporting agent or agents only.
A taxpayer can only have one main agent at a time.
Main and supporting agents
HMRC’s guidance includes a detailed list of what main and supporting agents can and cannot do. Briefly, a main agent can “fully manage” a client’s MTD income tax whereas a supporting agent has access to the client’s MTD income tax sole trade and property business information only.
Example
Polly is self-employed. Once in MTD income tax, Polly’s bookkeeper will prepare and submit her quarterly updates and Polly’s accountant will advise on her overall tax position, including submitting her tax return. Polly’s accountant will be her main agent and her bookkeeper a supporting agent.
The guidance explains how to get authorised as an agent. HMRC will automatically treat an agent as the main agent for a client in some circumstances, including where the agent has an agent services account and they have already signed up the client for MTD income tax.
ICAEW’s view
Caroline Miskin, Senior Technical Manager – Digital Taxation, said: “This is a significant development which will make it easier for taxpayers and agents to deal with the demands of MTD income tax. For other tax services, such as self assessment, a taxpayer can only have one agent at a time. It is important that it is fully tested over the coming months so that any issues are resolved in good time for the April 2026 start date.”
Further information
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