HMRC’s rollout of multi-agent access for Making Tax Digital for Income Tax Self Assessment (MTD ITSA) represents a step forward for accountants and bookkeepers. For years, only one agent could manage a client’s taxes, which was… not ideal. But now, multiple agents can team up, making things a lot smoother and less frustrating.
This blog explores what’s changed, how it works, and why it could make a big difference to the way you manage MTD.
Multi-agent access explained
The new functionality allows taxpayers to assign both a “main agent” and “supporting agents” to handle different aspects of their MTD ITSA obligations. For example, a bookkeeper might manage quarterly updates as a supporting agent, while an accountant, acting as the main agent, oversees year-end reporting and finalising tax submissions.
This separation of duties can lead to greater efficiency and collaboration, but it also requires clear communication and understanding of each agent’s role to avoid potential issues.
Key distinction between main and supporting agents
While main and supporting agents can both assist with specific client tasks, their responsibilities differ significantly.
Main agent capabilities:
The main agent has comprehensive oversight and powers. They can:
- Manage most elements of a client’s MTD ITSA account.
- Submit final tax returns.
- View all sources of income, including non-business income.
- Access client tax calculations, amounts owed, and payments made.
However, even a main agent cannot set up a client’s direct debit or opt for specific communication preferences with HMRC.
Supporting agent capabilities:
A supporting agent plays a more limited role, focusing on defined tasks such as:
- Submitting quarterly updates.
- Accessing a client’s digital records within the scope of their assigned role, such as business income details.
Certain activities remain out of bounds for supporting agents, including viewing non-business income, making higher-level amendments to payment schedules, or finalising year-end tax returns.
For a comparative summary, HMRC offers a helpful table in its guidance that accountants should review before deciding whether to utilise supporting agents.
What this means for accountants and their clients
The introduction of multi-agent access brings both opportunities and new considerations for accountants. Here’s a deeper look at what this development could mean for your practice.
1. Improved collaboration with bookkeepers
For accountancy firms that work with separate bookkeeping teams, this update provides the ability to delegate specific tasks. Bookkeepers can handle data entry and quarterly updates, freeing accountants to focus on strategic advisory services and final reporting.
This separation of roles also allows clients to retain their existing bookkeepers while simultaneously benefiting from their accountant’s expertise.
2. Reduced workload for accountants
Previously, many accountants had to manage all aspects of MTD ITSA compliance, from quarterly filings to year-end summaries. Multi-agent access means clients can now involve multiple professionals, reducing the burden on a single agent and improving efficiency in handling large or complex client bases.
Areas that require vigilance
While the update is a significant step forward, accountants must exercise caution in certain situations:
- Accidental displacement of main agents: When appointing supporting agents, care must be taken to ensure they are not mistakenly added as main agents. This error would revoke the existing main agent’s access to the client’s account without notification from HMRC.
- Communication about penalty points: Supporting agents who manage quarterly updates will not receive notifications about late submission penalties. Instead, these are sent directly to the main agent. This discrepancy necessitates open communication between all parties to avoid surprises.
The impact on your practice
The introduction of multi-agent access represents an opportunity for accountants to enhance efficiency and collaboration in MTD ITSA compliance. By enabling bookkeepers and accountants to share responsibilities, the system aligns more closely with the existing workflows of modern practices.
However, as with any new feature, its effectiveness depends on how well it’s understood and implemented. Taking the time to assess your clients’ needs and adapting to this new structure can ensure a smoother transition while reducing compliance headaches down the line.
Challenges and what you should be aware of
Despite the benefits, some quirks in the system may complicate matters:
- Supporting agents cannot be restricted to viewing only specific income streams. For example, a bookkeeper assigned to manage a sole trader’s business account may also see their property income, whether relevant or not.
- Supporting agents won’t receive notifications of penalty points for late filings. This could result in blame being shifted between agents unless proper communication channels are set up.
- Multiple agents managing different income sources for the same client could lead to gaps in oversight or duplicate efforts.
These challenges underline the importance of clear agreements and proactive communication between all agents involved.
Bookmark Bright’s MTD Hub!
For accountants, multi-agent access in MTD ITSA could be a game-changer, but it also requires careful implementation to unlock its full benefits. Focus on building strong communication systems and clear parameters for collaboration between agents.
If you’re navigating these changes or looking for further MTD guidance, be sure to bookmark Bright’s MTD Hub — your go-to source for the latest updates and helpful resources.
