Frequently Asked Questions (FAQ)
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 for VAT).
To resolve: Log in, select the business or individual, click on 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).
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 Email field, and click Update. A verification link will be sent to the new address. Click the link in the verification email sent to your new email address in order to complete the update. Read more
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.
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 My Tax Digital 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 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?
My Tax Digital supports 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 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.
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. 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 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. Watch video
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 Final Declaration. Watch video
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. Watch video
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. 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 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.
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
Can I delete my account or a specific business entity?
Yes. Go to the Update Business/Individual or Edit Profile screen, scroll to the bottom, and select Delete. Please be aware that this action is permanent and will erase all digital records for that entity. Read more
Do I still need to file a 31st January Self-Assessment return?
Yes. For the 2026-27 tax year and beyond, you will submit four quarterly updates followed by one Final Declaration by 31st January. This replaces the old annual tax return system.
Why can't I see my VAT obligations for a specific year?
The obligation search window is limited to 365 days. If you are looking for historic data, ensure your start and end dates are set to a 12-month window.
How do I import my bank transactions?
You can import bank data via CSV file. In the Transactions screen, select Import and map your spreadsheet columns to the app's fields. Watch video
What file formats are supported for Bridging Mode?
We support .xlsx, .xls, .ods (OpenOffice), and .csv. Mac users can also use .numbers files if they export them to one of these formats.
How do I report property income if I am a joint landlord?
You should only record your specific percentage share of the total income and expenses. If a property is owned 50/50, you enter only 50% of the totals into the app. Watch video
Can I use My Tax Digital on my mobile phone?
Yes. It is a web-based app optimised for mobile browsers.
What happens if I miss a quarterly update deadline?
HMRC uses a points-based penalty system. Each late submission earns a point. Once you reach a certain threshold of points, HMRC will issue a financial penalty.
How can I backup my digital records for my own files?
You can go to the Transactions screen and click Manage then Export (Filtered) to save your data as a CSV locally to your computer.
Can I submit "Nil" returns if I haven't traded?
Yes. If you have had no trading activity during a specific period, you can submit a return with all boxes set to zero to remain compliant.
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.
How do I register for a new VAT number?
You cannot register for a VAT number within the app. You must complete the registration on the HMRC website. Once you receive your VRN, you can add it to My Tax Digital.
What is considered "Qualifying Income" for ITSA?
Qualifying income is your total gross income (before expenses) from self-employment and rental property. It does not include income from a PAYE job 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.
