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Can an Accountant Submit My MTD Income Tax Updates?

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Can an Accountant Submit My MTD Income Tax Updates?

Can an Accountant Submit My MTD Income Tax Updates?

If you are self-employed or a landlord affected by MTD for Income Tax, you may be wondering: Can an accountant submit my MTD Income Tax updates on my behalf?

The answer is yes, an accountant or tax agent can submit MTD Income Tax updates for you, provided they are authorised to act on your behalf and use compatible HMRC-recognised software.

What Are MTD Income Tax Updates?

Under MTD for Income Tax, qualifying taxpayers are required to keep digital records and send periodic updates of their income and expenses to HMRC using compatible software.

These updates are designed to give HMRC information about your business or property income throughout the tax year. They are not the same as simply submitting a traditional Self Assessment tax return.

Depending on your circumstances, you may need to provide updates covering your relevant income and expenses during the tax year, followed by an end-of-period process and final declaration.

Can an Accountant Submit the Updates for Me?

Yes. You can appoint an accountant or tax adviser as an authorised agent to manage your MTD Income Tax obligations.

Once properly authorised, your accountant may be able to:

  • Set up and manage your MTD Income Tax records
  • Maintain digital bookkeeping records
  • Record business or property income and expenses
  • Prepare quarterly updates
  • Submit updates to HMRC using compatible software
  • Help with year-end adjustments
  • Complete the relevant end-of-period processes
  • Help prepare your final tax position
  • Communicate with HMRC on your behalf where authorised

This can be particularly useful if you are unfamiliar with digital bookkeeping or do not have time to manage your MTD obligations yourself.

How Does an Accountant Submit MTD Updates?

The process generally involves several steps.

1. Authorising Your Accountant

You first need to give your accountant appropriate authorisation to act as your tax agent. This allows them to access the relevant HMRC services and deal with your MTD obligations on your behalf.

2. Setting Up Digital Records

Your income and expenses need to be maintained digitally in a suitable accounting or bookkeeping system.

Your accountant can help determine what records need to be maintained and how your existing bookkeeping system can be adapted for MTD.

3. Connecting Compatible Software

MTD Income Tax requires information to be submitted digitally using compatible software.

Your accountant can help select and configure suitable software and establish the required connection with HMRC.

4. Preparing Your Updates

Throughout the tax year, your accountant can review your bookkeeping records and prepare the required updates.

They may check:

  • Sales and other income
  • Business expenses
  • Property income
  • Allowable expenses
  • Accounting records
  • Supporting information

5. Submitting Updates to HMRC

After reviewing the information, your accountant can submit the relevant MTD updates electronically using compatible software.

It is still important that you provide accurate and complete financial information to your accountant.

Do I Still Need to Keep My Own Records?

Yes. Using an accountant does not remove your responsibility to provide accurate financial information and retain appropriate records.

Your accountant can help maintain and submit your information, but you should still provide them with details such as:

  • Invoices and sales records
  • Receipts
  • Bank information
  • Business expenses
  • Property income and expenses, where applicable
  • Other relevant financial information

Keeping your records organised throughout the year can make the MTD process considerably easier.

What Are the Benefits of Using an Accountant for MTD?

Saves Time

Instead of learning every part of the MTD process yourself, you can have an accountant manage much of the administrative work.

Reduces Administrative Pressure

Regular digital record keeping and updates can become time-consuming. An accountant can help manage these requirements as part of your accounting service.

Professional Support

An accountant can review your records and help identify missing or potentially incorrect information before an update is submitted.

Help With Deadlines

MTD introduces ongoing reporting responsibilities. An accountant can help you keep track of relevant deadlines and reporting requirements.

Better Digital Bookkeeping

An accountant can help you move from spreadsheets or paper-based records towards a more structured digital bookkeeping system.

Can My Accountant Submit Updates Without My Involvement?

An accountant can handle many MTD tasks once they have the appropriate authorisation and access. However, they still need accurate information from you.

For example, if you are a self-employed individual, you may need to provide details of your sales, expenses and other relevant transactions. Your accountant can then use this information to maintain your records and prepare the required submissions.

It is therefore best viewed as a shared process: your accountant manages the accounting and reporting work, while you provide accurate information and remain responsible for your tax affairs.

Who Should Consider Using an Accountant for MTD Income Tax?

Professional support may be particularly useful for:

  • Self-employed individuals
  • Freelancers and contractors
  • Landlords
  • Sole traders
  • Individuals with multiple income sources
  • People who are not comfortable using accounting software
  • Taxpayers with limited time for bookkeeping
  • Individuals who want ongoing accounting and tax support

Choose PayLess Accountants for MTD Income Tax Support

At PayLess Accountants, we can help eligible UK taxpayers prepare for and manage their Making Tax Digital for Income Tax requirements.

Our support can include digital bookkeeping, accounting software setup, income and expense tracking, MTD update preparation and submission support, and ongoing tax compliance assistance.

If you are unsure whether MTD Income Tax applies to you or whether an accountant can manage your updates, getting professional advice can help you understand your responsibilities and prepare your records correctly.

Get in touch with PayLess Accountants to discuss your MTD Income Tax requirements and find out how professional accounting support can simplify your digital tax reporting.

 

Disclaimer: MTD rules, thresholds, deadlines and HMRC requirements can change. The information in this article is intended for general guidance and should not be treated as personalised tax advice. Check the latest HMRC guidance or speak with a qualified tax professional about your circumstances.