Making Tax Digital and the Agent Services Account
If you’re a tax agent and have clients within the scope of Making Tax Digital for VAT, then you’ll likely need an agent services account. As the agent services account is separate from the HMRC online services for agents account, this article explains what an agent services account is and how to create an account.
When do you need an agent services account?
An agent services account can only be used for a limited number of services for now, such as estate and trust registration for clients. More importantly, the agent services account gives agents access to Making Tax Digital services, including Making Tax Digital for VAT.
So, if you are a tax agent for any clients that need to comply with the new Making Tax Digital for VAT regime, you should get an agent services account.
How do I create an agent services account?
If you’re an existing UK-based tax agent looking to set up an agent services account, you can create an account online by following HMRC’s guidance at https://www.gov.uk/guidance/get-an-hmrc-agent-services-account.
Before creating the account, you should make sure you have a few pieces of information to hand, including your firm’s Unique Tax Reference number (UTR), the postcode associated with that UTR, as well as “the Government Gateway user ID and password you use to access HMRC online services for agents”.
Bear in mind that you can only create an agent services account if your firm is registered with a money laundering supervisory body or is awaiting a decision on an application to register for money laundering supervision with HMRC. You will need to provide details about your money laundering supervisory body, such as its name, your membership number, and the date your membership is due for renewal when creating an agent services account.
Crucially, there is also a limit of one agent services account per firm. This will be unfamiliar territory for many firms, who may have multiple government gateway IDs. As such, it’s important that the person who signs up for the agent services account is appropriately responsible for that task, and ideally uses an email address that isn’t likely to become inactive anytime soon.
Linking clients to the agent services account
Once your agent services account is set up, you should be able to link existing clients to the account and sign up new clients to services such as Making Tax Digital for VAT or Income Tax.
Further guidance on how to link your clients to your agent services account is available at
https://www.gov.uk/guidance/link-clients-to-your-agent-services-account
Don’t delay signing up
As Making Tax Digital for VAT is now in effect for many businesses, getting an agent services account as soon as possible should be a priority for any tax agents that will need to submit Making Tax Digital for VAT compliant returns for their clients.
If you need any further information about Making Tax Digital for VAT, including more information about the new record keeping and filing requirements, speak to a member of the MindSpace Outsourcing team.
