Help Your Clients with MTD by Becoming a Tax Agent with HMRC

Are you supporting long-standing clients with tax advice or accountancy services, or looking to attract new clients? As a registered tax agent with HMRC, you’ll open up opportunities to expand your client offering and streamline Making Tax Digital (MTD) obligations. It’s one of the most effective ways to support clients through this transition.

You’ll need to register as a tax agent and create an HMRC agent services account (ASA) so that you have the legal authority to act on behalf of clients – filing tax returns, accessing records, and linking MTD-compatible software directly to HMRC’s systems. The agent services account provides the technical infrastructure needed to manage multiple clients’ digital tax obligations through a single, centralised portal.

What is an HMRC Tax Agent?

A tax agent is someone who HMRC authorises to act on behalf of clients in managing their tax affairs. Tax agents have direct access to HMRC systems, so you can submit returns and correspond with HMRC directly.

Help clients comply with their tax obligations

As a tax agent, you’ll need to ensure that your clients comply with MTD requirements. You’ll be the intermediary between HMRC and your clients, handling their Income Tax Self-Assessment (ITSA) submissions and digital record-keeping requirements, as well as keeping up to date with HMRC changes. It may require more hands-on support, but it is an opportunity to strengthen client relationships by offering a complete, end-to-end service.

Why tax agents are essential for Making Tax Digital

Under MTD, clients will need to use compatible digital software to submit their ITSA. While some may be comfortable doing this themselves, many will look to you, their accountant, for support. They might lack the technical expertise or time to stay on top of their submissions – as their tax agent, you can bridge this gap by providing the expertise clients need while taking on the administrative burden of digital compliance. For many small business owners, landlords, or sole traders, this takes away the stress of navigating MTD software and reduces the risk of late filings or errors.

The Benefits of Registering as a Professional Tax Agent

If you want to help your clients comply with their tax obligations, you’ll need an agent services account, and to do that, you need to register as a tax agent. There are some benefits that impact your practice’s growth and service quality, though.

Attract new business opportunities

As Making Tax Digital deadlines approach, particularly with Income Tax Self-Assessment in 2026 and beyond, businesses will be actively looking for accountants who can take control of the process. For new or prospective clients, having tax agent status could be a strong differentiator. It signals professionalism, credibility, efficiency, and the technical capability to handle digital submissions – all of which make your practice more attractive to prospective clients who need reliable MTD support.

How to Register with HMRC as a Tax Agent

Becoming an HMRC-recognised tax agent is a fairly straightforward process…

Eligibility requirements

To register with HMRC and create an agent services account, here’s what you’ll need to provide:

• Personal and business details You’ll need to provide identification and basic business information – your full name, trading name (if different), business address (not a P.O. box), contact details, and National Insurance number.
• Tax reference numbers HMRC will ask for relevant Unique Taxpayer References (UTRs) – e.g. partnership UTR, limited liability partnership UTR, or company UTR, as well as any VAT registration number or PAYE employer reference your firm holds.
• Anti-Money Laundering supervision evidence You’ll also need details of your anti-money laundering (AML) supervision registration. You’ll need to supply who your supervisory authority is, documentary evidence, and your supervision registration number if HMRC is your AML supervisory authority.

HMRC standard for tax agents

HMRC tax agents have to meet specific criteria that demonstrate your professional competence and compliance with regulatory standards. You’ll be assessed against the HMRC standard for agents. While professional body membership isn’t mandatory, a lot of agents belong to professional bodies such as ACCA or ICAEW, and HMRC expects members to follow their body’s code of ethics.

HMRC also expects all agents to maintain high standards that promote tax compliance, with a particular focus on three fundamental principles: integrity, professional competence and due care, and professional behaviour. Failure to uphold these standards can lead HMRC to withdraw your agent status.

The registration process step by step

1. Register as a tax agent using HMRC’s online services.
2. When HMRC has accepted your registration, you can create an agent services account (ASA) if you don’t already have one.
3. If you don’t already have one, you will create a Government Gateway user ID and password for your ASA.
4. You’ll now have access to multiple tax services within the agent services account.
5. You must then request authorisation from your clients so that you can formally act on their behalf through HMRC’s online system. 6 Once authorised, you can connect your practice’s MTD-compatible software directly to HMRC’s systems.

Note: If you already have an HMRC online services account and at least one client you’re authorised to act for (Self Assessment, VAT, PAYE, or Corporation Tax), you can upgrade to an agent services account immediately.

Software for Making Tax Digital [H2]

To comply with Making Tax Digital (MTD), software must:

• Keep digital records of income and expenses in the correct format.
• Communicate directly with HMRC using their secure Application Programming Interface (API).
• Submit returns electronically (e.g. VAT returns, ITSA updates, finalisation statements).
• Maintain digital links between records (i.e. no copying/pasting between spreadsheets; data must flow digitally).
• Be recognised by HMRC – meaning it’s on HMRC’s published list of approved MTD-compatible software providers.

Software considerations for accountants

Acting as a tax agent requires you to integrate MTD-compatible software into your practice. This may mean moving clients from spreadsheets or legacy desktop systems to cloud platforms. You play a key role in recommending the right software solution and supporting migration. Before advising clients, consider:

• Client size and complexity: A sole trader might need only simple record-keeping, while a multi-entity business may require advanced functionality, e.g. clients with multiple income streams or non-standard accounting periods.
• Ease of use: Is the software intuitive enough for clients with limited digital skills?
• Cost: Pricing varies significantly and some free products have restrictions on how they can be used. You need to weigh the fee (or lack thereof) against the features offered.
• Integration capabilities: Can it link to existing systems like payroll, expense apps, or CRM tools? You don’t want to create administrative headaches with software that doesn’t work with other tools.
• Scalability: Can the software grow with your client as their turnover, staff numbers, or reporting needs expand?

In short, don’t just recommend the first MTD-compatible software platform you find. Assess each client’s technical skills, budget, and business needs. And ensure your own practice is ready to support setup, migration, and ongoing use.

Professional Support for Making Tax Digital

Step one, register with HMRC as a tax agent. Step two, work with your clients to support their digital transition. ICPA members don’t have to navigate MTD alone. An ICPA membership includes access to Tolley+ Guidance on Making Tax Digital for ITSA, alongside an exclusive ICPA MTD Guide that explains quarterly submissions, exemptions, and best practices for reporting and claims. Our technical advice lines are also available to help you handle challenging compliance scenarios.

Making Tax Digital is here to stay, and the role of the tax agent is becoming central to compliance. Your expertise, combined with our support resources, creates a powerful foundation for your practice’s growth and exceptional client service in the digital tax era.