HMRC has published a special Making Tax Digital for Income Tax agent update, aimed at helping accountants and tax advisers prepare for their clients’ first quarterly updates.
The update was published on 7 July 2026 and brings together practical guidance, videos, support links and tips from agents already using the system. It lands as many sole traders and landlords are moving from sign-up into the harder operational question: how quarterly reporting will work in practice.
For small businesses, the message is not just that MTD exists. It is that record keeping, software access and adviser communication need to be ready before the first quarterly update is due.
What HMRC has published
The special agent update is designed for tax agents and advisers. HMRC says it includes information to help agents complete and send a first quarterly update, links to guidance and videos, top tips from other agents and routes for general support.
HMRC has also updated its “Get ready for MTD” agent toolkit. That toolkit covers planning, client segmentation, practice preparation and how agents can decide what services they will offer. HMRC’s Agent Engagement team is also running interactive group sessions on Microsoft Teams so agents can ask questions directly.
Although the documents are written for advisers, the content matters to the businesses they support. If your accountant is segmenting clients, choosing software workflows and deciding service levels, your business may soon be asked for cleaner records, earlier updates and clearer responsibility for digital bookkeeping.
Why it matters to SMEs
Making Tax Digital for Income Tax applies from 6 April 2026 to sole traders and landlords whose total annual income from self-employment and property is over the relevant threshold. HMRC’s sign-up guidance says those in scope need to use compatible software and send quarterly updates, rather than leaving everything until the Self Assessment deadline.
That changes the rhythm of tax admin for many small firms. A quarterly update is not the same as a final tax return, but it still depends on accurate, up-to-date records. Businesses that currently hand over receipts once a year may find the new timetable uncomfortable unless they change habits now.
The new agent material is also a prompt to have a practical conversation with your adviser. Do they expect you to use a particular bookkeeping package? Who will categorise transactions? How often should bank feeds be checked? What happens if income from property and self-employment is split across different systems?
Those questions are easier to settle before deadlines arrive. They are also easier to price and plan when both sides know what work the accountant will do and what work stays inside the business.
What small firms should check now
Start by confirming whether the business is in scope, especially if income is close to the threshold or comes from more than one self-employed or property source. If you are unsure, ask your accountant to check against HMRC’s current rules rather than relying on last year’s position.
Next, make sure the bookkeeping basics are ready. Bank accounts should be connected where appropriate, sales and expense categories should be consistent, and any paper-heavy processes should be moved into a routine that can support quarterly reporting.
It is also worth agreeing a timetable with your adviser. A quarterly update needs records to be complete before it can be sent, so the internal deadline for getting information to the accountant may be earlier than the HMRC deadline. Businesses with seasonal trading, mixed income or directors juggling several roles should be especially clear on who owns each step.
BritishSME recently covered the point that Making Tax Digital sign-up is now open for sole traders over the 2026 threshold. The latest HMRC agent update is the next practical reminder: signing up is only the start of the workflow.
The takeaway
HMRC’s special agent update is aimed at advisers, but small businesses should treat it as a signal to get their own MTD housekeeping in order. Ask your accountant what they need, confirm the software route, and set a quarterly records routine before the first update becomes urgent.
The firms that adapt early are more likely to avoid rushed reconciliations, missing information and unexpected adviser fees. MTD is becoming a regular admin cycle, not a once-a-year scramble.
Sources: HMRC: Agent update – Making Tax Digital for Income Tax; HMRC: Get ready for MTD – an agent toolkit; HMRC: Sign up for Making Tax Digital for Income Tax.
