Making Tax Digital for Agents issue 18: September 2021

HMRC have issued Making Tax Digital for Agents Issue 18 (September 2021). We have summarised the key content for you.

 Changes to Agent Services Account (ASA)

• Guidance has been updated on how agents can update their details (name, address and email address) by writing to: HMRC, National Insurance Contributions and Employer Office, BX9 1AN.
• The guide also previews the new introductory screens that clients will see when they click on an authorisation request link.

Making Tax Digital for VAT 

• HMRC have published their commissioned Research into whether Making Tax Digital for VAT (MTD for VAT) is meeting its objectives.
• In response to agent feedback, the Agent Services Account has had the functionality to show clients' payment due dates and payment history since September.
• HMRC have started to issue letters reminding those mandated for MTD for VAT but not yet signed up, that if they do not sign up before their next VAT filing deadline, penalties may be charged.
• In relation to the requirement to have digital links in VAT returns from 1 April 2021, HMRC have issued a list of accepted digital links. See VAT Notice 700/22. 
• HMRC is currently transitioning all customer VAT accounts across to a new system. Anyone without an email address linked to their account will have their direct debits cancelled before the transition due to banking regulations. Once transitioned, customers accessing their Business Tax Accounts will be prompted to set up a new direct debit and provide an email address. All accounts should be transitioned by November 2021.
• Previous VAT forms VAT50 and VAT51 have been combined and will be required for all new VAT Group registrations from 13 September 2021. The new form (VAT50/51) can be found at gov.uk.

Making Tax Digital for Income Tax Self Assessment

• In a change from MTD for VAT, agents can now ask for client authorisation from their Agent Service Account.
• Agents who have clients signed up to Making Tax Digital for Income Tax (MTD for ITSA) or who have signed up to the pilot, will have access to a new agent viewer which will show clients' ITSA tax calculations, obligations and payments.
• Although bulk sign-ups to MTD for ITSA will not be possible, the system will be open from 6 April 2022 to allow the sign up of mandated clients. The MTD obligations will not be activated but it will give agents 12 months to sign up clients. Any sign-ups before 6 April 2022 will be for the Pilot scheme.

GOV.UK guidance

There are the following revised or new links available:

• Authorise an agent to deal with certain tax services for you (revised)
• How to register and get authorised as a tax agent to deal with HMRC (revised)
• Change or remove your authorisations as a tax agent (new)
• Change or remove your tax agent’s authorisation (new)
• How to give staff access to your HMRC online tax agent account (new)

Webinars

HMRC are running a series of webinars for those being mandated into MTD for VAT from April 2022. For more information, see here.

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External link

Making Tax Digital for Agents Issue 18