My Tax Digital - Frequently Asked Questions (FAQs)
General FAQs
Is My Tax Digital truly free to use?
Yes, both VAT and Income Tax Self Assessment, including record-keeping and submissions, is completely free. Launched in 2019 by Open Answers as a technical showcase and a social good, My Tax Digital provides a free alternative for those who previously used HMRC’s manual services. Now supporting tens of thousands of users, we remain committed to offering a free service for individuals.
Do I need to download any software?
No, My Tax Digital is a web app. You only need a modern web browser (e.g., Chrome, Firefox, Safari) to use it.
Why am I seeing a "The client and/or agent is not authorised" error?
It usually means your 18-month HMRC authorisation has expired or you are signed in with the wrong Government Gateway ID (e.g., using a personal ID instead of a business one). Watch VAT Authorisation video or Watch ITSA Authorisation video
- To resolve: Log in, select the business or individual, click on the HMRC Authorisation tile and click Continue to HMRC Sign-in. You must use the Government Gateway credentials associated with the specific VAT Registration Number (VRN) or Individual's National Insurance Number (NINO).
I’ve just registered for MTD with HMRC, but it says I’m not authorised. Why?
HMRC systems can take up to 72 hours to process your MTD sign-up. Even if you receive a confirmation email from HMRC, their API may not immediately recognise the link. Please wait 3 days before attempting to authorise the software again.
Why am I getting an error saying my NINO is not associated with my ID?
This message comes directly from HMRC. It usually means the Government Gateway ID you used is not the same one linked to your Self Assessment/NINO. Verify you are using the correct credentials or contact HMRC to check which ID is linked to your tax account.
What should I do if I am not receiving my 2FA Secure Passcode email?
First, check your spam or junk folders. If it hasn't arrived within 10 minutes, contact our support team. We can temporarily disable Two-Factor Authentication (2FA) for your account so you can log in and update your email if necessary. Watch video
How do I update my email address?
Click on your User Initials in the top right, go to Edit Profile, enter the new email address in the Email field, and click Update. A verification link will be sent to the new address. Click that link to complete the update. Read more
What happens if I forget my password?
On the Sign-in screen, click the Forgot Password? link and follow the steps to reset it via your registered email address.
How do I give another user (e.g., my accountant) access to a business?
Use the Share Access feature found in the Update Business/Individual. The other user must register and create their own My Tax Digital account first. You will then share access using their registered email address.
My spreadsheet won't upload or shows mapping errors. Why?
Our system may struggle with Excel files that contain external references (links to other files on your computer). To resolve this, save your file as a CSV (Comma Delimited) format and upload the CSV version instead. This removes external dependencies and ensures data integrity.
How do I import my bank transactions?
In the Transactions screen, select Import and map your spreadsheet columns (CSV) to the app's fields. Watch video
Can I delete my account or a specific business/individual?
Yes. Go to the Update Business/Individual or Edit Profile screen, scroll to the bottom, and select Delete. This action is permanent. Read more
How do I contact HMRC directly?
You can find up-to-date contact numbers on the official HMRC website.
- HMRC VAT Enquiries: 0300 200 3700.
- Self Assessment Enquiries: 0300 200 3310.
Is my data stored securely in the UK?
Yes. All data is stored in secure, enterprise-grade data centers located within the United Kingdom to ensure GDPR and HMRC compliance.
Can I use My Tax Digital on my mobile phone?
Yes. It is a web-based app optimised for mobile browsers.
VAT FAQs
How do I sign up for MTD for VAT?
HMRC now handles the registration process automatically. You only need to register for a My Tax Digital account and then Authorise it using your business's Government Gateway ID.
Do spreadsheets qualify as compatible software for MTD?
If you use a spreadsheet, use our Bridging Mode to link box totals digitally. Watch video
Can I file my VAT returns manually through the HMRC portal?
No. Unless you have a digital exclusion exemption, all VAT returns must be submitted using MTD-compatible software.
Why can't I see my VAT obligations for a specific year?
The obligation search window is limited to 365 days. Ensure your start and end dates are set to a 12-month window.
I received a reminder for a VAT period that hasn't ended yet. Is this a mistake?
Reminders are automated based on predicted periods. If your specific reporting period is still open, you can ignore the reminder until the period closes.
Can I use the software for an Irish VRN?
No. My Tax Digital is strictly for UK HMRC VAT registration numbers at this time.
What VAT accounting schemes are supported?
Standard Accounting, Cash Accounting, Flat Rate, and the Margin Scheme.
Can I submit "Nil" returns? Yes. If you have had no trading activity, you can submit a return with all boxes set to zero.
What file formats are supported for Bridging Mode?
We support .xlsx, .xls, .ods (OpenOffice), and .csv. Mac users can also use .numbers.
How do I register for a new VAT number?
You must complete the registration on the HMRC website. Once you receive your VRN, you can add it to My Tax Digital.
What if my business falls below the VAT threshold?
You must continue to follow MTD rules even if turnover falls below the threshold, unless you successfully deregister for VAT via the HMRC portal.
What VAT information do I need to keep digitally?
You need to keep a digital record of all income and expenses. This includes the transaction date, the amount (VAT rate and total), and the details of any adjustments or corrections you have made.
Income Tax Self Assessment (ITSA) FAQs
What is MTD for ITSA?
It is the new system for self-employed people and landlords to report income and expenses digitally to HMRC via four quarterly updates and a Final Declaration, replacing the old annual Self Assessment tax return. Watch video
Who needs to use MTD for ITSA and when?
You must use MTD for ITSA if you are a sole trader or a landlord whose total gross income from self-employment and/or property is over the following thresholds:
| Mandatory Start Date | Qualifying Income Threshold (from self-employment and/or property) |
|---|---|
| 6 April 2026 | Over £50,000 (Based on 2024–25 tax year income) |
| 6 April 2027 | Over £30,000 (Based on 2025–26 tax year income) |
| 6 April 2028 | Over £20,000 (Based on 2026–27 tax year income) |
How do I change the tax year I am viewing or reporting for?
Use the Active Tax Year dropdown menu located on the top left-hand side (LHS) of the dashboard. Ensure the correct year (e.g., 2026-27) is selected to see your obligations.
Why does it say "No Obligations" for the current period?
This happens if the "Active Tax Year" dropdown is set to the wrong year, or if HMRC has not yet generated your obligations. Double-check your settings first.
Does the software send quarterly reminders for Income Tax?
Quarterly reminders for Income Tax are currently on our roadmap and coming soon. Currently, automated reminders are primarily for VAT.
How many submissions do I need to make each year for ITSA?
You will need to make five submissions: Four Quarterly Updates and one Final Declaration. Watch video
What is a 'Quarterly Update'?
A cumulative summary of income and expenses for a three-month period, filed within one month and seven days of the quarter-end date. Watch video
What if I make a mistake in a quarterly update?
You do not need to resubmit the previous quarter. Simply correct the transaction in the app; the error will be corrected automatically in the next cumulative update or Final Declaration. Watch video
Do I still need to file a 31st January Self-Assessment return?
Yes. For the 2026-27 tax year and beyond, the Final Declaration (submitted by 31st January) replaces the old annual tax return system.
How do I report property income if I am a joint landlord?
Record only your specific percentage share of the total income and expenses (e.g., if owned 50/50, enter only 50%). Watch video
What is considered "Qualifying Income" for ITSA?
Total gross income (before expenses) from self-employment and rental property. It does not include PAYE salary or pensions.
Does the app support interest, dividends, or pensions?
Support for these additional income sources is being rolled out during Q1 of 2026. Please check the Additional Income section in your profile for the latest updates.
Does MTD for ITSA apply to each property separately?
No. The income threshold applies to the total combined income from all your sole-trader businesses and all your UK property income. Watch video
Can I still offset losses between my different businesses? Yes. MTD for ITSA does not change the tax rules regarding loss relief. The app facilitates tracking for multiple businesses, allowing for the correct final calculations in the Final Declaration.
What happens if I miss a quarterly update deadline? HMRC uses a points-based penalty system. Each late submission earns a point; reaching a certain threshold triggers a financial penalty.
