faqs | My Tax Digital

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. As noted by Paul Lewis in Radio Times Money: "One called My Tax Digital 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.

I've signed up for MTD with HMRC but I still can't access any pages in My Tax Digital. What do I need to do?

Signing up for MTD on HMRC's website and authorising My Tax Digital are two separate steps — completing the first does not automatically complete the second.

HMRC MTD sign-up (done on the HMRC website) registers you for the scheme and sets your reporting obligations. HMRC Authorisation in My Tax Digital (done inside the app) is the secure handshake that gives the software permission to communicate with your HMRC account. Without it, all MTD pages remain inaccessible.

To fix this: log in to My Tax Digital, click HMRC Authorisation from the Self Assessment menu, and click Continue to HMRC. Sign in with your Government Gateway credentials to grant access. Full guide: HMRC Authorisation.

Before authorising, confirm your HMRC sign-up has fully processed (can take up to 72 hours):

Log in to your HMRC online services account and select Income Tax. You should see a Making Tax Digital for Income Tax section with a link to view and manage it.
Click View and manage Making Tax Digital for Income Tax. Your Self Assessment dashboard should show your UTR, upcoming submission deadlines, and a Your reporting obligations panel listing "use Making Tax Digital for Income Tax".
Click View and manage your reporting obligations. The table should show "Using Making Tax Digital for Income Tax: Yes" with status Required.
Click View your deadlines. Your quarterly submission deadlines should be listed.

If all of the above show correctly, proceed with the in-app authorisation. If the MTD obligation does not appear, your HMRC sign-up hasn't completed — wait a little longer before trying 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.

I get a "Couldn't find type" error when importing my bank statement CSV. Why?

This happens when a column mapped to the Transaction type field contains values the system does not recognise. Many banks (e.g. Starling) export a column also called "Transaction type" with values like "ONLINE PAYMENT" or "CARD SUBSCRIPTION" — these are banking descriptors, not My Tax Digital classification values.

Our Transaction type field only accepts: Business, Business (EU), Personal, Disallowable, Unreconciled, Margin Scheme, or Ignore.

To fix it, either:

Leave the Transaction type field unmapped during import — you can classify transactions individually afterwards.
Or edit your CSV before uploading so the Transaction type column contains one of the valid values above. For most business bank transactions, Business is the correct choice.

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.

I am a VAT-registered sole trader. Do I need to set up a Business AND an Individual in My Tax Digital?

Yes. You will need to add yourself as both a Business (for VAT) and an Individual (for Income Tax Self Assessment). Click the +Add new button in the bottom left, choose Business, and enter your business details including your VAT Registration Number (VRN). Your Individual entry handles your ITSA quarterly updates and Final Declaration separately.

My VAT submission appeared to fail but HMRC shows the period as Fulfilled. What happened?

Occasionally HMRC's system fails to respond with a confirmation receipt, so My Tax Digital cannot record it. If HMRC's portal shows the obligation as Fulfilled, your figures were received successfully. You can log into your HMRC online services account for further assurance. No further action is needed.

Will deleting transactions affect VAT returns I have already submitted?

No. Deleting transactions in My Tax Digital will not change any VAT return that has already been submitted to HMRC. Once a return is filed, HMRC's copy of the figures is final. If you need to correct a submitted return, refer to the HMRC guidance on correcting VAT return errors.

My company is non-resident. Are we exempt from MTD for VAT?

Being a non-resident company does not automatically exempt you from MTD for VAT. If you are registered for VAT in the UK and making taxable supplies, you are generally required to file digitally. Contact HMRC directly to confirm your specific obligations.

Can I split a payment transaction across multiple invoices?

Yes. Open the transaction in the Transactions screen, click Manage then Split Transaction, and enter the amount to split off into a new separate transaction. Repeat until you have a separate transaction for each invoice amount, then reconcile each one to its respective invoice via the Associated Transactions section on each invoice.

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.

I am not VAT registered — why are my property expenses showing excluding VAT in the summary?

This is caused by the VAT Treatment setting on your income source being set to Exclude VAT - Use Net transaction figures. As a non-VAT registered landlord, VAT on expenses is a legitimate cost and should be included. Go to your UK Property income source settings and change the VAT Treatment to Include VAT - Use Gross transaction figures, then save. Your expense totals will then reflect the gross VAT-inclusive amounts.

Income Tax Self Assessment (ITSA) FAQs

I've authorised My Tax Digital but I'm still seeing "The client or agent is not authorised". What should I do?

Work through the following steps in order:

Check your Government Gateway ID. If you have more than one ID (e.g. a personal and a business one), ensure you are using the one linked to your Self Assessment account. Click Start again on the authorisation screen to retry with a different ID.
Wait 72 hours after signing up. HMRC's systems can take up to 72 hours to process a new MTD sign-up, even after you receive a confirmation email. Do not attempt to authorise until this period has passed.
Verify your MTD sign-up is active. Log in to your HMRC online services account at tax.service.gov.uk/account, select Income Tax, and check the Your reporting obligations panel. If your sign-up has processed correctly, it should list "use Making Tax Digital for Income Tax" as one of your obligations.

If it does not appear, your sign-up may not have completed successfully.
Contact HMRC directly. If your sign-up is confirmed as active but the error persists, the issue lies within HMRC's records. Contact HMRC's MTD for Income Tax helpline and ask them to confirm the link between your Government Gateway ID and your NINO. General Self Assessment enquiries: 0300 200 3310.

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)

As a sole trader, do I need to set up a Business entity as well as an Individual?

It depends on your submission mode:

Submission mode	Entity required
Bridging mode (import quarterly spreadsheets)	Individual only
Accounting mode (record transactions directly in My Tax Digital)	Individual + linked Business

If you are using Bridging mode to import your SA103, SA105, or SA106 spreadsheet each quarter, everything goes through your Individual entity — Self Assessment → Obligations → Import figures. You do not need a Business entity.

A Business entity is only needed if you switch to Accounting mode (which creates a linked Business automatically) or if you want to use e-invoicing features. If you have created a Business entity you don't need, you can leave it unused or delete it from its Update screen.

Why doesn't my business name appear in my MTD Self Assessment return?

This is expected. Under MTD, your business name is registered with HMRC as part of your self-employment income source when it was first set up — HMRC hold it on file linked to that income source. Unlike the old SA103 paper form, the MTD quarterly and final submissions do not include a separate business name field; income is simply associated with your National Insurance number and the registered income source.

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?

Yes. All income sources, reliefs, and deductions required for your Self Assessment tax return are now supported under the Additional Information tile/menu — including UK and foreign interest and dividends, employment and pension income, state benefits, charitable giving, investment reliefs, and more. Read more

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.

Do I need to use a spreadsheet for end-of-year adjustments and the Final Declaration?

Only the quarterly income and expense updates require a digital link (i.e. a spreadsheet). All end-of-year adjustments, allowances, and additional income sources such as savings interest can be entered directly into the relevant forms within the app — no final spreadsheet is needed.

Am I obligated to submit my Final Declaration through My Tax Digital if I use it for quarterly updates?

No. You are not obligated to submit the Final Declaration through the same software. You can use My Tax Digital solely for your quarterly updates and complete the end-of-year return through a different route if you prefer. Simply choose the Self Assessment option when setting up.

Can I resubmit a quarterly update to correct an error in the same period?

Yes. There is no limit on the number of updates you can submit for a given period — each new submission supersedes the previous one. If you discover an error (such as a wrong property percentage split), simply correct the figures and resubmit for the same period.

I declared CIS income under Self Employment and now my tax calculation shows double the correct figure. How do I fix it?

CIS income should only be declared via Additional Information → Construction Industry Scheme — not also as self-employment turnover. HMRC already holds the deduction data submitted by your contractors, so entering the same income under Self Employment causes it to be counted twice.

To fix it: remove the duplicate income from your self-employment figures (in Bridging mode, correct your spreadsheet and resubmit the affected period), then re-trigger a tax calculation to confirm the figures are correct.

Where do I enter expenses for my CIS work?

There is no separate expenses tab in the CIS section. Costs you incur doing CIS work — materials, travel, equipment, and so on — should be entered as standard self-employment expenses under your Self Employment income source. The CIS section covers only the deductions withheld by your contractor.

My SA103 view shows my turnover inclusive of VAT. How do I make it exclusive?

The read-only SA103 view displays figures inclusive of VAT by default. When you click the "Set up MTD Self Assessment" button, you will find an option to control the VAT treatment (inclusive or exclusive) for your income and expenses when using Accounting mode. HMRC requires Self Assessment income to be reported exclusive of VAT, so select exclusive at that point.

How do I record Drawings or other personal payments from the business?

There is no specific "Drawings" category, as drawings are not a tax-deductible business expense for a sole trader. Record them using Category: Bank Transfer and Transaction type: Personal. The same approach applies to personal payments such as contributions to a SIPP. Transactions marked as Personal are excluded from your HMRC submissions.

Can I use My Tax Digital if I am not yet mandated for MTD?

My Tax Digital is built specifically for MTD submissions and does not support the traditional annual Self Assessment return (SA100) for those not yet in MTD. If you are not yet mandated, use HMRC's own Self Assessment online service at gov.uk or a third-party Self Assessment software product. Once mandated — or if you choose to opt in early — My Tax Digital is free to use for your quarterly updates and Final Declaration.

Does My Tax Digital support non-UK tax residents or the SA109 residence pages?

Partially. The app supports UK property rental income and employment/pension income declared at Final Declaration stage. However, the SA109 supplementary pages covering non-UK residence status, split year treatment, and remittance basis are not currently supported. Non-UK tax residents who are required to complete SA109 would need to use an alternative product or HMRC's own service to complete their full return.

Does My Tax Digital support SA800 Partnership Tax Returns?

No. Partnership Tax Returns (SA800, including the SA803 and SA804 supplementary pages) are not currently within the scope of Making Tax Digital. HMRC has not yet mandated partnerships for MTD and has not yet made it available to software providers - which means no MTD software can support SA800 filing at present. We plan to add SA800 support as soon as HMRC mandate and enable it.

In the meantime, there are two options for filing SA800:

Third-party software: HMRC maintains a list of approved software suppliers that support SA800 partnership returns via the existing filing interface. Deadline: 31 January.
Paper return: HMRC still accepts SA800 on paper. The paper filing deadline is 31 October (earlier than online). Forms are available from gov.uk.

Does the Furnished Holiday Let (FHL) tax regime still apply?

No. The FHL tax regime was abolished from 6 April 2025. FHL income is now treated as standard UK property income and should be reported using the SA105 UK Property template in the normal way.

Why do boxes 30-43 appear to be missing from the SA105 UK Property template?

These boxes are intentionally excluded. They cover calculated totals and annual adjustment items — such as capital allowances, loss relief, and basis period adjustments — which are handled separately in the app's Adjustments & Allowances screen at year end, not as part of the quarterly bridging upload. The template contains all the fields needed for quarterly submissions.

Where do I find the SA105 UK Property template?

The SA105 template is for UK Property income, which is a separate income source type from Self-Employment. It is accessible from within a UK Property income source — go to Business Income, select or add a UK Property source, open an obligation, and click Import figures. You can also download it directly here: SA105 UK Property template (XLSX).

Why am I seeing error C55326 "Periods of Account information is required for all Self Employments"?

This error appears on the Tax Calculations screen when an Intent to Finalise calculation is submitted but HMRC has no periods of account data on record for one or more of your self-employment income sources.

C55326 error

To resolve it, go to Business Income, open each Self Employment income source in turn, and open the Periods of Account tile. Submit the periods of account for that source, then repeat for any remaining sources. Once all sources have been submitted, trigger a new Intent to Finalise calculation.

See the Self Employment Income guide for full details on the Periods of Account screen.

For further background, see HMRC's MTD ITSA service guide — Basis period reform: Capture Period of Account.