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

• Remember that taxpayers without a national Insurance number (NINO) cannot join MTD income tax. This includes non-residents who have never either lived or worked in the UK and UK residents who have moved to the UK but never worked here. Temporary NINOs do not count for MTD income tax purposes. 
• Be aware that non-resident taxpayers are within the scope of MTD income tax. At Spring Statement 2025, the government announced that those who complete the SA109 section of the SA return will not need to join MTD income tax before 2027. Full details of how this temporary exemption will work are still awaited. 
• Don’t assume that you’ll need to monitor turnover on a continual basis. Taxpayers have to sign up to join MTD income tax but HMRC will contact them when it thinks they should join. The test works differently from VAT and there is no need to monitor turnover on a continual basis. The requirement to join is based on a taxpayer’s combined gross income/turnover from sole trades and property reported on their self assessment (SA) returns. Taxpayers join from the April following the filing date for the return in which the threshold is first exceeded. 
• Read the PCRT bodies’ interim guidance covering the application of professional standards to the provision of MTD income tax services. The guidance is in the form of frequently asked questions and covers a range of areas, including the accuracy of quarterly updates. 
• Catch up on the highlights from ICAEW’s MTD Live event held on 28 April 2025. A recording of the session covering the background to, and design of MTD income tax is available to watch on demand, and the session exploring the implementation of MTD income tax has been summarised in an article. 
• 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. 
• 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. Further, 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
• Subscribe to TAXwire by updating your communication preferences