Signing clients up for Making Tax Digital

We explore how accountants and bookkeepers can sign up clients for MTD for VAT and MTD for IT.

Making Tax Digital

Published Monday 15 December 2025

Table of contents

Key takeaways

  • You'll need to register clients for MTD for Income Tax manually through compatible software before the mandatory deadlines. These deadlines are based on turnover: £50,000+ by April 2026, £30,000+ by April 2027, and £20,000+ by April 2028.
  • Set up proper authorisation through your HMRC agent services account before you sign up clients. Remember, you can't complete the authorisation process on their behalf – your clients must authorise you personally.
  • Make sure your clients have MTD-compatible software installed and are registered for Self Assessment before you start the MTD for Income Tax sign-up process. These are essential requirements.
  • VAT-registered businesses have been automatically enrolled in MTD for VAT since April 2022. You just need to check their VAT registration status rather than signing them up separately.

Can you sign up a client for MTD?

Yes, you can sign up clients for MTD, but the process is different for each tax type.

MTD for VAT: You don't need to sign clients up for MTD for VAT. HMRC has already enrolled all VAT-registered businesses. You just need to make sure they're registered for VAT.

MTD for Income Tax: You'll need to sign up clients manually by:

  • Checking registration: Your client must be registered for Self Assessment first
  • Using compatible software: Use MTD-compatible software to complete the sign-up
  • Getting authorisation: Your client must authorise you through your agent services account

HMRC has a guide to signing up for MTD for IT.

When should you sign clients up for Making Tax Digital?

The timing for MTD depends on your client's business type and income level.

For VAT: All VAT-registered businesses have been automatically signed up since April 2022, unless they're exempt.

For Income Tax – mandatory deadlines are:

  • April 2026: Sole traders and landlords with £50,000+ combined qualified income
  • April 2027: Sole traders and landlords with £30,000+ combined qualified income
  • April 2028: Sole traders and landlords with £20,000+ combined qualified income

Partnership and corporation tax: HMRC hasn't confirmed the dates yet. You can find more information on Making Tax Digital timelines here.

How to sign up a client to Making Tax Digital for Income Tax

To sign a client up for MTD for Income Tax, you'll need three things: agent authorisation, compatible software, and your client's Self Assessment registration. Keep in mind that a taxpayer can only have one main agent at a time.

Here's the step-by-step process:

1. Check authorisation status

  • Existing clients: Copy Self Assessment authorisation from HMRC online services
  • New clients: Request new authorisation through your agent services account

2. Make sure the software is ready

  • Your client must have MTD-compatible software ready for digital record keeping and submitting returns
  • You'll also need MTD-compatible software on your side to manage your client's submissions

3. Complete the sign-up

What you need to register a client for Making Tax Digital for Income Tax

To sign clients up for Making Tax Digital for Income Tax (MTD for IT), you'll need:

  • an agent services account (ASA)
  • MTD for IT compatible software
  • your client's full name, date of birth, and National Insurance number
  • your client's business name, address, and the nature of their business
  • their business start date and accounting method

How to create an agent services account

An agent services account lets you manage your clients' tax affairs on their behalf through HMRC's digital services.

To be eligible, you need to be:

How to add clients to your agent services account

Adding clients to your agent services account works in two different ways:

For existing VAT clients: Copy client details from your HMRC online services account, and the authorisation will transfer automatically.

For new clients:

  1. Check MTD sign-up: Your client must be registered for Making Tax Digital first
  2. Create an authorisation link: Select 'ask a client to authorise you' in your agent services account
  3. Send to your client: They must complete the authorisation themselves (you can't do this step for them)
  4. Communicate promptly: Let your clients know you've sent the authorisation request, as the link expires after a set period

Important: You can't authorise yourself on behalf of clients – they must complete this step on their own.

Voluntary sign-up for Making Tax Digital

Clients who fall below the MTD for Income Tax thresholds can choose to sign up voluntarily. This is particularly helpful if their turnover is close to the mandatory threshold. It's a great way for them to get familiar with the new processes before it becomes mandatory for them. Signing up early helps your clients get used to keeping digital records and gives them a clearer, more up-to-date view of their business finances, which can help with planning and decision-making.

Getting your clients ready for Making Tax Digital

Guiding your clients through the move to Making Tax Digital is an important part of your advisory role. By making sure they have the right processes and tools in place, you can make compliance feel less like a burden and more like an opportunity for better financial management.

Using MTD-compatible software like Xero makes compliance more straightforward. You can manage client records, prepare returns, and get a real-time view of their finances, all in one place. Join the Xero partner programme to access the tools and support you need to simplify MTD for you and your clients.

FAQs on signing clients up for Making Tax Digital

Here are answers to some of the most common questions about signing clients up for Making Tax Digital.

How do I get client authorisation for MTD?

Client authorisation is managed through your agent services account (ASA). You'll need to request authorisation through your ASA by selecting the relevant tax service and entering your client's details. Your client will then receive an authorisation code, which they must use to approve the authorisation themselves – you can't complete this step on their behalf. The code needs to be entered within 30 days. Keep in mind that VAT clients are already enrolled in MTD for VAT, so you don't need to follow this authorisation process for them.

Do sole traders have to register for Making Tax Digital?

Sole traders and landlords with qualifying income above £50,000 must follow Making Tax Digital for Income Tax from April 2026. Those earning above £30,000 need to follow MTD for IT rules from April 2027. Those with qualifying income above £20,000 must follow Making Tax Digital for Income Tax from April 2028.

Will clients already signed up for MTD for VAT also need to sign up for MTD for IT?

Yes. Clients who meet the criteria will need to sign up for MTD for IT. They can do this themselves, or you can do it on their behalf.

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