New MTD Feature: How Multiple Agents Can Now Handle Your Tax Returns
- Jul 21
- 5 min read
By Richard
If you are a small business owner in the UK, the phrase "Making Tax Digital" (MTD) has likely been on your radar for some time. It is the government’s ambitious plan to move the entire tax system into the 21st century, replacing paper-based records and manual filings with digital updates. While the goal is efficiency, the journey for many SMEs has felt a little restrictive, particularly when it comes to who can help you manage your accounts.
For a long time, HMRC’s digital systems were built around a "one-agent" rule. This meant you had to choose a single person or firm to represent you. If you had a bookkeeper doing your daily records and an accountant handling your year-end strategy, one of them usually had to work "behind the scenes" using the other's login or relying on manual data transfers.
That has finally changed. HMRC has officially unlocked multi-agent access for MTD for Income Tax (MTD ITSA). This is a game-changer for the way small businesses operate, and in this guide, we will break down exactly how it works, why it matters, and how it can help your business grow.
The Problem with the Old "One Agent" System
In the traditional setup, HMRC’s portal only allowed for one authorised agent per tax regime. For a small business, this created a technical bottleneck.
Most successful SMEs rely on a dual-support system:
The Bookkeeper: Handles the day-to-day "heavy lifting." They record invoices, track expenses, and ensure the bank accounts reconcile. They are the ones who know exactly how much you spent on office supplies last Tuesday.
The Accountant: Provides the high-level strategy. They look at the "big picture," handle complex tax planning, ensure you are claiming the right reliefs, and ultimately sign off on your final tax return.
Under the old rules, you could only officially appoint one of them in the eyes of HMRC for MTD. This led to fragmented workflows, security risks (like sharing passwords), and a lot of unnecessary back-and-forth communication. If you wanted to scale your business, this lack of flexibility was a hurdle.
Understanding the New Multi-Agent Roles
HMRC’s update, as detailed in recent industry reports like AccountingWEB, introduces a tiered system of access. Instead of just one "agent," you can now have a "Main Agent" and multiple "Supporting Agents."
1. The Main Agent
The Main Agent is your primary point of contact for HMRC. Think of them as the captain of your financial ship. Only one Main Agent is allowed per business.
The Main Agent has full access to:
Sign the client up for MTD for Income Tax.
View and manage penalties or appeals.
Submit the "Final Declaration" (the end-of-year tax return).
Perform all the tasks a supporting agent can do.
In most cases, this role is best suited for your Self-Assessment accountant, as they carry the professional responsibility for the accuracy of your final tax position.
2. Supporting Agents
This is where the flexibility truly begins. You can now appoint multiple Supporting Agents. These agents have restricted access tailored to day-to-day management.
A Supporting Agent can:
Maintain digital records.
Submit the required "Quarterly Updates" to HMRC.
View business and property income details.
A Supporting Agent cannot submit the final tax return or sign you up for the service initially. This role is perfectly designed for bookkeepers or specialized tax consultants who focus on specific areas of your business.
Why This Matters for SME Growth
This isn't just a technical update; it’s a boost for SME Growth. By allowing multiple professionals to access your data officially, HMRC is acknowledging how modern businesses actually work.
Better Division of Labour
You no longer have to pay "accountant rates" for data entry that a bookkeeper can handle. Your bookkeeper can now officially submit your quarterly updates directly through their own software, while your accountant monitors the data from a distance, jumping in only when professional tax advice is needed.
Improved Accuracy
When two sets of professional eyes are looking at your digital records through their own official portals, the chance of errors drops significantly. Your bookkeeper ensures the records are current, and your accountant ensures they are compliant. This "double-check" system is vital for staying on top of Corporation Tax and VAT obligations.
Scaling Your Business
If your business operates across multiple locations or has diverse income streams (such as property and retail), you might need more than one specialist. You could have one bookkeeper for your rental properties and another for your main trade, all reporting back to one central accountant. Multi-agent access makes this complex structure easy to manage.
How to Set Up Multi-Agent Access
Setting this up is relatively straightforward, but it requires coordination.
Appoint your Main Agent first: Usually, your accountant will send you an authorisation request through their HMRC agent services account. Once you approve this, they are in the "Main Agent" slot.
Add Supporting Agents: Your bookkeeper or second professional will then send their own authorisation request. Because the system now recognises multiple roles, their request won't "bump" your accountant out of the system.
Use Compatible Software: Ensure both your accountant and bookkeeper are using MTD-compatible software. If you are still getting your systems in place, it is also worth understanding MTD 2026: What Happens If You Don't Have Bridging Software by the Deadline. The beauty of this update is that different agents can use different software packages, provided they all talk to HMRC’s API.
Finding the Right Team
To make the most of this new feature, you need a team that communicates well. The "Main Agent" and "Supporting Agent" need to be on the same page regarding your deadlines and financial goals.
If you currently only have an accountant but feel your daily record-keeping is becoming a burden, now is the perfect time to find a bookkeeper. Conversely, if you have a great bookkeeper but need a professional to handle the new MTD for Income Tax finalisations, you should look for a qualified accountant. If you are comparing your options, Accounting Services UK: The Complete Guide to Finding the Right Accountant for Your Business is a useful place to start.
At Accountant Search, we specialise in matching SMEs with the right professionals. Whether you need a local expert in London or specialized VAT advice, we can help you build the multi-agent team that your business deserves.
The Financial Benefits of Collaboration
While it might seem like hiring two different agents increases costs, the reality is often the opposite.
Avoiding Penalties: With a bookkeeper submitting quarterly updates and an accountant overseeing the final return, the risk of late or incorrect filings: and the heavy HMRC penalties that follow: is greatly reduced.
Time Savings: As a business owner, your time is best spent growing your company, not wrestling with spreadsheets. Offloading these tasks to a collaborative professional team is an investment in your own productivity.
Strategic Tax Planning: Because your accountant has a clearer, real-time view of your data (thanks to the bookkeeper’s work), they can provide better advice on things like capital allowances or pension contributions throughout the year, rather than just at year-end.
Looking Ahead: Is Your Business Ready?
The transition to MTD is a journey, not a single event. HMRC’s move to allow multi-agent access is a sign that the system is becoming more flexible and user-friendly. However, it also means you have more choices to make about how your tax affairs are managed.
Don't wait until the next big deadline to reorganise your team. Use this new feature to your advantage today by clearly defining the roles of your financial advisors.
If you’re unsure whether your current setup is the most efficient, we can help. Our service is designed to take the stress out of finding tax professionals. Simply provide us with a few details, and we will match you with the best local accountants who are fully equipped to handle MTD’s new multi-agent functionality. For more practical guidance, you can also read How to Find an Accountant in the UK: A Step-by-Step Guide for Business Owners.
Your tax doesn't have to be a solo mission. With the new multi-agent rules, you can build a support team that works as hard as you do.
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