Report 09 Mar 2026

Expert View: Sage MTD for Income Tax Agent: Automating Quarterly Income Tax Reporting

The UK government’s Making Tax Digital (MTD) initiative expands from VAT to Income Tax in April 2026, moving sole traders and landlords from annual self-assessment to quarterly digital reporting, which raises workloads and compliance risks. Sage’s MTD for Income Tax Agent automates client preparation, data collection, authorizations, quarterly obligations, flagging missing data, reporting (incl. variances), and HMRC submissions with rule-based agents and human oversight. This improves scalability, reduces errors, and accelerates digital adoption while freeing capacity, lowering risk, and enabling accountants to focus on higher-value advisory work.