The Agent Services Account: What You Need To Know

The UK’s tax system continues its transformation into the digital age, with new Making Tax Digital (MTD) requirements on the horizon. As we approach key rollout dates, having an agent services account is more important than ever for agents managing their clients' tax affairs. Here’s everything you need to know about agent services accounts, how they work, and why they’re essential for MTD compliance.

What is an agent services account?

An agent services account is a dedicated HMRC account that allows tax agents to access a range of online services, including those tied to the Making Tax Digital for VAT and Making Tax Digital for Income Tax initiatives. Unlike the older HMRC Online Services system, this account enables agents to seamlessly manage MTD requirements for their clients, ensuring compliance with new digital record-keeping and reporting policies.

Think of it as the essential link between tax agents, HMRC, and the MTD-compatible software used for submitting digital tax data. If you’re wondering, “What is an agent services account?” at its core, it’s your gateway to staying connected and compliant in the evolving tax landscape.

At present, agents can only use the agent services account for a limited number of online services from HMRC, namely Making Tax Digital or registering a trust or an estate online. This means that agents should continue to use the government gateway to access services not covered by the agent services account (for example, VAT services for clients who do not fall within the remit of Making Tax Digital for VAT).

Why do you need a MTD agent services account?

The ongoing expansion of MTD brings significant changes. This means that an MTD agent services account isn’t just another piece of admin; it’s the main way you’ll manage your clients’ VAT and income tax requirements.

From April 6, 2026, MTD for Income Tax Self Assessment (ITSA) will become mandatory for individuals with an income over £50,000. A year later, on April 6, 2027, the threshold will lower to include taxpayers with incomes exceeding £30,000. Additionally, all VAT-registered businesses are already required to comply with MTD rules.

Whether you’re managing VAT or Income Tax for clients, an agent services account for MTD is vital if you meet the eligibility requirements. It enables you to link your clients, authorise your software, and submit updates digitally to HMRC. It’s a streamlined, centralised solution for handling the complex reporting requirements of MTD.

Who should create an account? 

Any tax agents working on behalf of clients that are or will be involved in Making Tax Digital should look into creating an agent services account, although an account will also be useful for any agents who would like to register trusts or estates online with HMRC.

Due to the government’s and HMRC’s overall commitment to digitising the UK’s tax system, arguably the need for an agent services account also extends to all tax agents, as the number of online services offered by HMRC is expected to increase in the future.

How to set up an account 

Getting started with your agent services account isn’t complicated, but you’ll need some key details to hand. Here’s a quick checklist to guide you through the process:

1. Create Your Account: You’ll need your firm’s Government Gateway ID and password, as well as your Unique Taxpayer Reference (UTR) and the postcode associated with your UTR.
2. Authorise Software: To use the account for MTD submissions, you must link compatible software to your agent services account. HMRC provides a list of tested and approved software providers.
3. Client Management: Invite existing clients to connect with your agent services account or authorise new clients so you can act on their behalf for MTD.

Once set up, you’ll have direct access to new MTD services alongside the ability to manage client authorisations efficiently. Unlike older systems, this account offers enhanced functionality designed to keep pace with HMRC’s digitisation goals.

Is there anything else agents should be aware of?

With everything moving online, security is super important. HMRC has introduced an optional two-step verification (2SV) process for extra safety. It adds an extra step when logging in by sending a unique code to your phone or email.

Currently, two-step verification is not required when creating an agent services account, although HMRC did note in Issue 66 of its Agent Update that the optional use of two-step verification should be available in the near future for firms that wish to make use of it when agents log in to the agent services account.

Even though two-step verification is not currently required when creating or logging into an agent services account, please note that you will have to use two-step verification when you link your Making Tax Digital compatible software to your agent services account.

Aside from security matters, another important feature of the agent services account is that only one agent services account should be in place per firm. This means that only the person responsible for all things tax or administration-related at the agent’s firm should create an account.

The future of MTD

HMRC isn’t stopping here. Making Tax Digital (MTD) is gradually rolling out to more groups of taxpayers, so it’s only a matter of time before these tools become essential for everyone managing tax affairs. By setting up an agent services account now, you’ll stay ahead of the game while saving yourself stress as new rules come into effect.

If you’re unsure about where to start, HMRC’s resources can help. They’ve got tools to guide you through setting up your account, choosing the right software, and understanding your responsibilities under MTD.

Conclusion

Although traditional Government Gateway IDs can still access some HMRC online services, it’s now essential for tax agents to set up an agent services account. This account is crucial for managing the expanding requirements under Making Tax Digital (MTD). With MTD for Income Tax set to roll out in phases, starting in April 2026 for individuals earning over £50,000 and extending to those earning over £30,000 in April 2027, an agent services account ensures agents are prepared to handle these changes efficiently.

The account is more than just a technical tool; it’s at the center of managing digital tax submissions. From linking MTD software to submitting quarterly updates, this account streamlines compliance. Since the UK’s tax system will continue to digitise, the role of agent services accounts will only grow, offering access to additional online services over time. Preparing now by establishing an agent services account is key to staying compliant and ready for future MTD milestones.