MTD for Income Tax checklist for accountants

The twelve steps

1. 01
   Set up the agent services account

   MTD for Income Tax needs an agent services account (ASA). Existing Self Assessment authorisations are recognised, but must be copied into the ASA. GOV.UK

2. 02
   Segment the client list

   Sort clients by qualifying income (turnover, not profit) from their 2024 to 2025 and 2025 to 2026 returns: in now, 6 April 2027, 6 April 2028, or exempt. GOV.UK

3. 03
   Screen for exemptions

   £20,000 or less is automatically exempt; other automatic exemptions and applications (for example digitally excluded) are on GOV.UK. GOV.UK

4. 04
   Check who HMRC already signed up

   From September 2026 HMRC began signing up anyone who needed MTD for 2026 to 2027 and had not signed up. Reconcile your list against HMRC’s. GOV.UK

5. 05
   Agree main or supporting agent

   Only the main agent can submit the client’s tax return through MTD. Settle roles where a client has more than one adviser. GOV.UK

6. 06
   Choose and standardise software

   One product per submission. Check income types, both submission types, multi-agent support, HMRC Assist and accounting-period support. GOV.UK

7. 07
   Confirm sign-up conditions

   The client must be registered for Self Assessment and have filed a return in the last 2 years. Each client is signed up individually. GOV.UK

8. 08
   Pick standard or calendar periods

   Calendar periods (1 April start) must be chosen in software before the first update and are fixed for that year once an update is sent. GOV.UK

9. 09
   Set up digital records and links

   Each transaction needs amount, date and category. Products used together must be digitally linked; no copy and paste once an update has been sent. GOV.UK

10. 10
    Build the quarterly timetable

    Work back from 7 August, 7 November, 7 February and 7 May: chase records, review, send. Updates are cumulative and nil updates still count. GOV.UK

11. 11
    Brief clients on penalties

    No points for late quarterly updates in 2026 to 2027; from 2027 to 2028, 4 points means £200. Late returns still earn points. GOV.UK

12. 12
    Update fees and engagement letters

    Quarterly work is new recurring work. Price it and add it to the engagement letter before the first quarter, not after. (practice view, not a GOV.UK rule)

Want this as a printable working document?

The Practice Rollout Checklist expands these steps into 55 tick-box checks across 6 A4 pages, with the A to E segmentation grid, nine engagement-letter clauses, a client letter template, five intake questions and a triage grid.

Practice checklist · £19 See what’s inside

Common questions