Frequently Asked Questions (FAQ)

Is My Tax Digital truly free to use?

Yes, both VAT and ITSA, including record-keeping and submissions, is completely free.

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.

How do I update my email address?

Click on your User Name in the top right, go to Edit Profile, enter the new email address in the New Email (Requires Verification) field, and click Save. A verification link will be sent to the new address.

How do I give another user (e.g., my accountant) access to a business?

Use the Share Access feature found in the settings for that 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.

How do I resolve the error: “The client and/or agent is not authorised.”?

This usually means the link between My Tax Digital and your HMRC Government Gateway account has expired or is incorrect. Log in, select the business or individual, go to the relevant Authorisation section (MTD VAT or MTD ITSA), 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).

Why do I have to re-authorise My Tax Digital with HMRC?

HMRC requires all MTD software authorisations to be renewed approximately every 18 months for security reasons. You will receive an email reminder from us when this is due.

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 sign up for MTD for VAT?

You no longer need to sign up yourself—HMRC handles the registration process. You only need to register for a My Tax Digital account and then Authorise HMRC Connection using the business's Government Gateway ID.

Do spreadsheets qualify as compatible software for MTD?

No, spreadsheets alone do not qualify. You must use compatible software like My Tax Digital, which connects digitally to HMRC. If you prefer keeping records in a spreadsheet, you must use our Bridging Mode to link the nine box totals digitally to the app before submission. Copying and pasting or manual retyping the final figures from a spreadsheet is not a digital link and is not compliant.

Can I file my VAT returns manually through the HMRC portal?

No. Unless you have successfully applied for a digital exclusion exemption from HMRC, all VAT returns must be submitted using MTD-compatible software like My Tax Digital.

What VAT accounting schemes are supported?

We support the Standard Accounting Scheme, Cash Accounting Scheme, Flat Rate Scheme, and the Margin Scheme. The app is flexible enough to handle the record-keeping needs of all these schemes.

What VAT information do I need to keep digitally?

You need to keep a digital record of all sales and purchases. This includes the transaction date, the amount (VAT rate and total), and the details of any adjustments or corrections you have made.

What if my business falls below the VAT threshold?

If your business was above the VAT threshold when MTD became mandatory for you, you must continue to follow MTD rules even if your turnover later falls below the threshold, unless you successfully deregister for VAT via the HMRC VAT portal.

What is MTD for ITSA?

It is the new system for self-employed people and landlords to report their income and expenses digitally to HMRC. It replaces the old annual Self Assessment (SA) tax return process with four quarterly updates and a Final Declaration.

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 relevant threshold:

• £50,000 or more: Mandatory from the start of the tax year beginning on or after 6 April 2026.
• £30,000 or more: Mandatory from the start of the tax year beginning on or after 6 April 2027.

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.

How many submissions do I need to make each year for ITSA?

You will need to make five submissions in total for each tax year: Four Quarterly Updates (Periodic Submissions) and One End of Period Statement (EOPS) / Final Declaration.

What is a 'Quarterly Update'?

This is a cumulative summary of the income and expenses for your business(es) and/or property for that three-month period. It is filed to HMRC via My Tax Digital within one month and seven days of the quarter-end date.

Do the quarterly updates include all my income (e.g., PAYE salary)?

No. The quarterly updates only include income and expenses from your self-employment business(es) and property letting. Your personal income (like PAYE salary or pensions) is included in the Final Declaration at the end of the year.

What if I make a mistake in a quarterly update?

You do not need to resubmit the previous quarter. You simply correct the underlying transaction in the Transactions section of the app. The error will be corrected automatically when you submit the next cumulative quarterly update, or in your Final Declaration.

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 the tracking of income and expenses for multiple businesses, allowing for the correct final calculations to be submitted in the Final Declaration.

How do I contact HMRC directly?

The best way to contact HMRC depends on your query (VAT, Income Tax, etc.). You can find the most up-to-date contact numbers on the official HMRC website. For example: HMRC VAT Enquiries Tel: 0300 200 3700.