Checklists
Making Tax Digital for Income Tax (MTD ITSA) – Accountant Checklist
Preview Checklist
Making Tax Digital for Income Tax (MTD ITSA) Accountant/Agent Checklist
1. Check if your client needs to sign up
☐Confirm client is registered for Self-Assessment. ☐Confirm client earns income from self-employment, property, or both. ☐Check client’s gross qualifying income:-
- Over £50,000 → Must start from 6 April 2026.
- Over £30,000 → Must start from 6 April 2027.
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- Employment (PAYE).
- Partnerships (unless disguised management fees apply).
- Dividends, savings, pensions, etc.
2. Work out your client’s qualifying income
☐Include gross self-employment income and gross property income. ☐If property is jointly owned, include only client’s share. ☐If client uses cash basis and is VAT-registered, confirm if VAT is included or excluded. ☐Adjust qualifying income if client has part-year trading (annualised gross income).3. Create your Agent Services Account (ASA)
☐Register for an Agent Services Account if you don’t already have one. ☐You must be:-
- A director, partner, or sole trader of the firm.
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- Firm’s UTR, postcode, Companies House number (if any), VAT number (if any), and anti-money laundering details.
4. Get compatible software
☐Find MTD ITSA-compatible software that can:-
- Create, store, and correct digital records.
- Send quarterly updates to HMRC.
- Submit final tax returns.
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- Calendar periods if accounting year is 1 April–31 March.
- Multiple income sources (self-employment, UK property, foreign property).
5. Prepare client authorisation
☐Get client’s permission to sign them up for MTD ITSA. ☐If already authorised for Self Assessment:-
- Link client to ASA if necessary.
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- Request digital authorisation through your ASA.
6. Sign up your client for MTD ITSA
☐Check client eligibility (must meet voluntary sign-up conditions if signing up early). ☐Gather client details:-
- Full name, date of birth, NI number.
- Business name, address, start date, nature of trade (if sole trader).
- Accounting method (cash or traditional).
7. Create and maintain client’s digital records
☐Maintain digital records for:-
- Self-employment income and expenses.
- Property rental income and expenses.
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- Record client’s share separately.
- Optionally simplify quarterly updates (aggregate joint property income).
8. Send quarterly updates
☐Ensure updates are submitted for each business/property every 3 months:-
- 6 April–5 July → Deadline 7 August
- 6 April–5 October → Deadline 7 November
- 6 April–5 January → Deadline 7 February
- 6 April–5 April → Deadline 7 May
9. Adjust at year-end
☐After the 4th update:-
- Apply tax adjustments (disallowable expenses, private use).
- Apply accounting adjustments (prepayments, accruals).
- Adjust for 1–5 April if using calendar periods.
- Apply relevant reliefs (e.g., capital allowances, trading allowance).
10. Finalise and submit client’s tax return
☐Confirm all income sources are declared (business + personal). ☐Finalise Income Tax position in the client’s MTD-compatible software. ☐Submit full tax return via software by 31 January following tax year-end.11. Ongoing compliance
☐Retain all digital records for at least 5 years after 31 January deadline. ☐Monitor client’s payments on account (if applicable). ☐Stay alert to:-
- Changes in client’s business circumstances.
- Exemptions or opt-outs (if circumstances justify).
⭐ Important Special Situations for Agents
Situation | What to Do |
Client joins after 6 April 2026 | Start MTD only after filing their first Self Assessment return. |
Clients with turnover under £30,000 | Not yet mandatory (future timeline pending). |
Client ceases self-employment/property letting | Update HMRC via online services. |
Bridging software users | Maintain strict digital links without manual copy-paste. |
Testing phase sign-ups | No quarterly update penalties during the 2025–2026 test year. |
📌 Agent Summary Flow
- Confirm client’s eligibility.
- Create and secure Agent Services Account (ASA).
- Set up compatible software.
- Request client authorisation.
- Sign up client via ASA.
- Create ongoing digital records.
- File quarterly updates.
- Make year-end adjustments.
- Submit final tax return.
- Manage compliance, payments, and changes.
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What is this MTD ITSA accountant checklist?
This MTD ITSA accountant checklist is a step-by-step guide for accountants to prepare clients for Making Tax Digital for Income Tax Self Assessment compliance.
Who needs to follow MTD for ITSA rules?
MTD for ITSA applies to self-employed individuals and landlords earning over £50,000 annually from April 2026, and over £30,000 from April 2027.
How can accountants prepare clients for MTD ITSA?
By using a checklist covering client segmentation, software setup, training, quarterly submissions and end-of-period statements to ensure full compliance.
What software is needed for MTD ITSA compliance?
MTD-compliant software is required to keep digital records and submit quarterly updates. FigsFlow’s checklist includes tips on choosing and setting up software.