ICAEW’s Tax Faculty explains the key steps for agents when signing up clients for Making Tax Digital (MTD) for income tax.
ICAEW is often asked, “Why do we need to sign up a taxpayer to MTD? Why is it not automatic?”
As taxpayers move over to using MTD, their data is also moving between HMRC systems. In self assessment, their data is held in the CESA system. MTD is based on the newer Enterprise Tax Management Platform (or ETMP). By signing up a taxpayer, agents get the opportunity to check and amend the taxpayer’s data as it is being migrated.
Key steps
- Before signing up a client, agents must have an agent services account (ASA) and be authorised to act for the client. This can be done by linking to the existing authority for self assessment in the HMRC online services for agents account (OSA). The MTDtalk webinar on 6 March 2026 walks through the screens for linking agent codes (and therefore authorisations).
- Agree with your client whether you will complete the sign-up process or whether they will sign themselves up (link for taxpayers).
- If you are signing up the client, you can do this from your ASA or from gov.uk (link for agents).
- Allow around four minutes per client for the sign-up process. The MTDtalk webinar on 6 March 2026 walks through the screens for the sign-up process.
- Be clear what tax year you are signing up for. The options are always the current tax year or the next tax year.
- Have the following information ready:
- Client first name
- Client last name
- Client national insurance number (NINO)
- Client date of birth
- Trading business and/or property business start date if started within last two years.
- Nature of the trade.
- Business trading name/address.
- Once a client is signed up for MTD, you can manage their details in the ASA (including adding new business income sources and ceasing business income sources). To access the client record, you will need their Unique Taxpayer Reference (UTR).
