HMRC to allow double agents

HMRC to allow double agents

Making Tax Digital for Income Tax Self-Assessment (MTD ITSA) is in the news again. HMRC says it will permit sole traders and landlords to authorise multiple advisors to help with MTD. What's the full story?

Tax HMRC has operated on the policy of allowing you to have only one "authorised agent", e.g. an accountant, to act on your behalf on tax matters. The trouble is that many sole traders and landlords use the services of both a bookkeeper, for handling day-to-day matters and financial issues, plus an accountant to finalise their annual accounts, deal with tricky tax issues and file tax returns. This situation is accentuated by Making Tax Digital for Income Tax Self-Assessment (MTD ITSA) as bookkeepers, more so than accountants, are likely to be responsible for preparing the quarterly MTD reports required by HMRC.

Two types of agent. HMRC says that if you are in the MTD ITSA system (mandatory for many businesses from April 2026), you can authorise two types of agent: a main agent and a supporting agent. HMRC's latest guidance explains how you do this. You can have only one main agent but multiple supporting agents.

Main. Main agents can fully manage every aspect of MTD ITSA and other areas of your tax affairs. However, they are not allowed to set up a direct debit on your behalf or change the method of how you want HMRC to contact you, e.g. by email or post.

Supporting. Supporting agents can view your business and property income details to which MTD ITSA applies. However, they aren't allowed to finalise your overall tax position including submitting your annual tax return. A number of other restrictions apply, full details of which are listed in the HMRC guidance.

Tip. If you use a bookkeeper and an accountant, consider authorising one as a supporting agent. This will make it easier for them to carry out tasks that involve HMRC. It should also make communication with HMRC more efficient which in turn might reduce your costs.

When you join MTD ITSA you can authorise a "supporting agent", e.g. your bookkeeper, to deal with the associated issues, such as submitting quarterly tax reports. This can streamline communication with HMRC and reduce costs.