HMRC Talking Points: What Bookkeepers and Tax Agents Need to Know About Making Tax Digital and Client Support
For IAB members, this is the point where preparation needs to become routine practice. Clients will not just need technical tax guidance. They will need help understanding what applies to them, when they must act, what software they need, how digital records should be maintained and how their agent will support them under the new system.
This article summarises the key HMRC Talking Points covered in the update, including Making Tax Digital for Income Tax, the Agent Services Account, agent support sessions, the Income Record Viewer, temporary VAT changes for summer 2026 and UK Freeports guidance.
Making Tax Digital for Income Tax: the key priority for agents
Making Tax Digital for Income Tax is the most important item in HMRC’s update for bookkeepers and tax agents. HMRC has made clear that MTD for Income Tax will require affected sole traders and landlords to keep digital records and send updates to HMRC using compatible software.
According to GOV.UK guidance on when taxpayers need to use Making Tax Digital for Income Tax, the phased mandation timetable is based on qualifying income. Sole traders and landlords with qualifying income over £50,000 for the 2024 to 2025 tax year must use MTD from 6 April 2026. Those with qualifying income over £30,000 for the 2025 to 2026 tax year must use it from 6 April 2027. Those with qualifying income over £20,000 for the 2026 to 2027 tax year must use it from 6 April 2028.
For IAB members, the risk is not simply missing a deadline. The bigger risk is allowing clients to drift into MTD without clean records, compatible software, correct authorisation and a clear quarterly process. That creates pressure on the practice, increases error risk and weakens the client relationship.
What agents should be doing now
Agents should start by segmenting clients into clear MTD readiness groups. The first group should include clients who are definitely within scope from April 2026. The second group should include clients likely to enter MTD in April 2027 or April 2028. The third group should include clients who may be exempt, borderline or unclear based on their income and circumstances.
Once clients are grouped, agents should review software, bookkeeping habits, authorisation status and record completeness. A client using spreadsheets, paper records or irregular bookkeeping will need more support than a client already using cloud accounting software with monthly bookkeeping routines.
IAB members can also review existing IAB guidance, including Making Tax Digital for Income Tax resources and IAB’s Income Tax update for professionals, to help translate HMRC guidance into practical client actions.
The Agent Services Account is central to MTD preparation
HMRC’s update highlights webinars and videos explaining how to get ready for Making Tax Digital for Income Tax, including how agents should set up and use an Agent Services Account. This matters because the Agent Services Account is a key part of how agents manage digital authorisations and access services connected with MTD.
The GOV.UK Making Tax Digital for Income Tax preparation page explains that HMRC has published information and resources to help sole traders, landlords and agents prepare for MTD. It also points agents towards practical support and HMRC’s Agent Engagement team.
Agents should not treat Agent Services Account setup as an administrative afterthought. If the ASA is incomplete, poorly understood or not linked correctly to client authorisations, the practice can face avoidable friction when signing clients up for MTD.
Practical ASA checks for bookkeepers and agents
Before clients move into MTD, agents should check whether the practice already has an Agent Services Account, who has access to it, whether login credentials are secure, whether client authorisations are correctly linked and whether internal staff understand the difference between existing online agent services and ASA-based workflows.
This is also the right time to create a documented process. Every practice should have a basic MTD onboarding checklist covering client eligibility, software selection, digital record keeping, authorisation, quarterly update responsibilities, deadlines, review points and final submission responsibilities.
IAB members should also consider how MTD preparation fits into their wider CPD. IAB’s article on CPD for finance professionals is a useful reminder that structured learning is not just a compliance requirement. It is a way to protect service quality as tax processes become more digital.
HMRC agent support sessions: use them before client pressure builds
HMRC has confirmed that its MTD Agent Engagement team is running interactive group sessions on Microsoft Teams. These sessions are designed to give agents direct access to HMRC specialists, allowing them to discuss what is changing and ask questions in real time.
That support should be used early. Waiting until clients are already in MTD creates operational pressure. Using HMRC Talking Points webinars, videos and support sessions now gives practices more time to clarify responsibilities, adapt workflows and brief staff.
For bookkeepers, this is especially important because Making Tax Digital for Income Tax will increase the value of regular, accurate bookkeeping. Clients who previously treated bookkeeping as an annual tax return exercise will need to understand that digital records and quarterly updates require more discipline.
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Client communication must be clear, simple and repeated
Clients do not need a long technical explanation of every MTD rule. They need a direct explanation of what changes, when it affects them and what they must do next. Poor communication will create confusion. Confusion creates delays. Delays create avoidable compliance risk.
A strong client message should explain that Making Tax Digital for Income Tax is being phased in from April 2026, affected clients will need to keep digital records, compatible software will be required, quarterly updates will need to be submitted and authorisation may be needed for their agent to act on their behalf.
IAB members may find it useful to direct clients towards trusted official guidance from HMRC while using their own professional judgement to explain how the rules apply in practice. Members can also signpost clients to the IAB’s wider resources, including IAB guidance on quarterly tax reporting.
Income Record Viewer: a useful tool for client tax information
HMRC’s update also highlights the Income Record Viewer. This service allows agents to check client information such as pay, tax details, employment history, pension information and tax codes once the client has authorised access.
The GOV.UK guidance on getting access to the Income Record Viewer for agents explains how agents can use the digital handshake to access client information securely. For practices handling payroll queries, employment income checks or tax code issues, this can reduce back-and-forth and help improve accuracy.
However, the Income Record Viewer should not be treated as a substitute for proper client fact-finding. It is a support tool. Agents still need robust engagement letters, clear authority, secure processes and accurate records of advice given.
Temporary VAT reduction for summer 2026: what affected businesses need to know
HMRC’s Talking Points update also refers to the Government’s Great British Summer Savings 2026 scheme. From 25 June 2026 to 1 September 2026, a temporary reduced VAT rate of 5% will apply to certain children’s menu meals, children’s admission to theatres, cinemas, concerts, exhibitions and shows, and admission tickets to family attractions.
Full details are set out in Revenue and Customs Brief 5 (2026). Businesses in hospitality, leisure, entertainment and visitor attractions should review the guidance carefully and avoid assuming that every sale qualifies for the reduced VAT rate.
For bookkeepers and accountants, this is a practical systems issue as much as a tax issue. VAT codes, till systems, invoices, menus, ticketing platforms and bookkeeping processes may all need to reflect the temporary rate correctly. The risk is simple: if the wrong VAT treatment is applied at point of sale, correcting it later may be time-consuming and messy.
Action points for VAT-registered clients
- Identify clients who may sell eligible children’s meals, tickets or family attraction admissions.
- Check the exact start and end dates of the temporary VAT reduction.
- Update accounting software, VAT codes, till systems and ticketing platforms where needed.
- Confirm how qualifying and non-qualifying sales will be recorded separately.
- Review early transactions after the temporary rate begins to catch errors quickly.
Clients should also keep clear evidence showing why a supply was treated as eligible. This is particularly important where businesses sell a mix of standard-rated and temporarily reduced-rated items.
UK Freeports: tax and customs benefit awareness
HMRC’s update includes a recorded webinar on UK Freeports, covering an overview of Freeports and examples of possible tax and customs benefits for different businesses. This will not apply to every IAB member’s client base, but it may be relevant for clients involved in importing, exporting, manufacturing, logistics or supply chain operations.
The key point for agents is to recognise when specialist guidance may be needed. Freeports can involve tax, customs, property and operational considerations. If a client is exploring activity in or around a Freeport, bookkeepers and accountants should avoid giving unsupported advice beyond their competence and should refer to appropriate specialist support where needed.
What IAB members should prioritise next
The HMRC Talking Points update covers several areas, but not all of them carry the same operational urgency. For most IAB members, Making Tax Digital for Income Tax should be the immediate priority because it affects client workflows, software, records and authorisation at scale.
- First priority: create a practical MTD preparation plan for affected clients.
- Second priority: check the Agent Services Account, authorisation process and software readiness.
- Third priority: brief clients before deadlines create unnecessary pressure.
- Fourth priority: review VAT-registered clients who may be affected by summer 2026 VAT changes.
- Fifth priority: assess whether the Income Record Viewer can improve client data checks.
The most valuable next step is to create a simple internal MTD preparation plan. This should include a client eligibility review, an Agent Services Account check, a software readiness audit, a digital record keeping review, a client communication schedule and staff training. Do not leave this until the final quarter before mandation. That approach is weak because it transfers avoidable pressure onto staff and clients.
Second, practices should review clients who may be affected by the temporary VAT reduction in summer 2026. These clients need earlier communication because their pricing, systems and VAT coding may need to change before the scheme starts.
Third, agents should review whether they are using the Income Record Viewer efficiently. Where authorised, it can help speed up checks and reduce unnecessary client information requests.
How IAB can support your preparation
IAB members are operating in a period where bookkeeping, tax administration and digital compliance are becoming more connected. This creates pressure, but it also creates an opportunity. Clients will value professionals who can explain changes clearly, keep records accurate and help them avoid last-minute compliance problems.
Use HMRC’s official webinars and guidance, but do not rely on HMRC communications alone. Build your own internal process. Train your team. Segment your client base. Speak to clients early. Review software now. Make Making Tax Digital for Income Tax part of everyday practice management rather than a one-off deadline project.
For further support, explore IAB resources, access the member area or review the latest IAB guidance and updates. If you are not yet a member, learn how joining the IAB can support your professional development, compliance knowledge and long-term career in bookkeeping, accounting and finance.
