ICAEW is publishing tips for agents in its weekly TAXwire publication in the run-up to the start date for MTD income tax. Tips published to date are listed below and we will continue to add to the list as more tips are published.  

• Have a look at new and updated content on ICAEW’s MTD hub. This includes  MTD for income tax penalties and Choosing software for MTD income tax.  
• If you are already authorised by a client for self assessment (SA) that authority will be recognised for MTD income tax. You need to set up a link between your agent services account (ASA) and the agent accounts you use for SA. This service is available in the ASA. You will only be able to see which accounts are linked, not the individual clients. 
• Don’t assume that your client will be in MTD income tax because they receive a letter from HMRC telling them they are. HMRC is writing to taxpayers it believes may need to start complying with MTD income tax from April 2026 based on tax return entries for 2023/24. However, the figure for trade turnover for 2023/24 may be higher than usual due to basis period reform. Check the position before you discuss it with your client. 
• Jointly-let property is within the scope of MTD income tax. HMRC has published guidance that explains the limited circumstances in which the joint letting of property may constitute a partnership, which would make it exempt from MTD. In most cases, each individual will need to report their share of income and expenses from the property, along with any other property income.
• Don’t overthink which of your clients will be in MTD income tax. Simply add up the relevant boxes on their self assessment tax return - you may be able to download a list from your SA tax return software. You can develop a provisional list based on 2023/24 returns and update it as 2024/25 returns are prepared. 
• Join one of HMRC’s webinars. HMRC will host a series of webinars in the coming months with the first in the series providing an introduction to MTD income tax. See GOV.UK for details of the next webinar and to watch recordings of previous webinars. 
• Be aware that the best software solution for accounting firms will often involve multiple software products. For example, you can file quarterly updates from your accounting software and finalise the tax return using a tax software product. Both products need to be MTD compatible; the tax software product will be prepopulated with what has already been filed. 
• Don’t assume that your software that works for VAT will work for MTD income tax. Check with the developer.  

If you have suggestions for tips, please email stephen.relf@icaew.com. 

Additional resources: 

• Find out more about MTD
• Take ICAEW’s MTD quiz to test your knowledge of the rules 
• Subscribe to TAXwire by updating your communication preferences