An agent services account is the HMRC online account that accountants and tax agents use to act for clients under Making Tax Digital. It has its own Government Gateway user ID, separate from the agent's older HMRC online services account.
What it is for
A practice needs an agent services account to deal with clients’ Making Tax Digital for VAT and Making Tax Digital for Income Tax, and to authorise software such as Tax Optimiser to file on their behalf. To create one, the practice must be registered with HMRC as an agent and be supervised for anti-money laundering.
Two sets of credentials
Creating an agent services account gives the practice a new Government Gateway user ID. It does not replace the older HMRC online services for agents account, which is still used for services such as filing Corporation Tax returns as an agent. Most practices therefore hold both.
Heads up — when HMRC asks you to sign in to connect a client for VAT or Making Tax Digital for Income Tax, use the agent services account details. Signing in with the older agent ID, or with the client’s own ID, connects the wrong account.
Client authorisation
Each client must authorise the practice for each tax. Existing authorisations can be copied across from the older account, and new ones are requested through the agent services account for the client to accept.
Read more: Whose HMRC credentials are used, Connecting to HMRC for Making Tax Digital and Reconnecting VAT after signing in with the wrong account.