HMRC Information

All newly VAT-registered businesses in the UK are now automatically signed up for Making Tax Digital (MTD) for VAT. 

If HMRC have sent you a letter to inform that you must file your self assessment tax return using the new ‘Making Tax Digital’ then you must first sign up for MTD for IT. To do this click here. You may first wish to read the information provided on this webpage to learn more. 

When you are ready to sign up, scroll down and click on the green ‘Sign up now’ button. Before you do, make sure you know what your Unique Tax Reference (UTR) and National Insurance Number (Nino) are. You will now be presented with 3 options, to sign in using Government Gateway, GOV.UK One Login, or to create new sign in details. Make sure you take a note of your Government Gateway User ID and Password if you select the third option.

If you have previously used an accountant or tax agent to file your self assessment tax, then you may not have a Government Gateway User ID and Password. If this is the case, you will need to select the third option. This will require you to prove your identity, and so you must have your passport or other such identity document to hand. 

If you do have a Government Gateway User ID and Password then select the first option, login when prompted and follow the instructions. A large green banner will confirm when you have successfully signed up for MTD for IT.

You may further confirm you are signed up for MTD for IT at any time by logging in to your HMRC account using your Government Gateway User ID and Password. Someway below the title ‘Business tax account’ you should find a further title ‘Making Tax Digital for Income Tax’. A link at the bottom of this section will display further details and confirm that you are now signed up for MTD for IT.

If your business pays by Direct Debit then you need to sign up at least 7 working days before you need to submit.

You must wait for the confirmation email from HMRC before to attempt to use the MTD software.

If you do not receive a confirmation email from HMRC After 72 hours, you should report this to HMRC.

After purchasing an Ftax MTD for VAT or MTD for IT package you must authorise the Ftax service to submit VAT or IT or MTD for IT returns using MTD. This is done by first logging into your Ftax Account, clicking NEW to begin setting up an MTD web form, and then clicking to Authorise Ftax for MTD when prompted (usually the 2nd or 3rd step in the Overview process). You should then be prompted to ‘Continue’, to log into to your HMRC account using your existing Government Gateway User ID and password, and to click a ‘Grant authority’ button.

HMRC’s Step-by-Step guide to Making Tax Digital (MTD) sign up

Before you begin:

• Agents need to create an Agent services account, which provides the agent with the log in details required to access the MTD for VAT or MTD for IT APIs. Agents will also need to use the link existing clients’ service, if they want to submit for a client who they have an existing relationship with in MTD for VAT or MTD for IT.
• Businesses submitting their own VAT returns only need to complete steps 3 and 4. They can do this using existing Government Gateway (GG) ID if they have one OR they can set up a new one.
• Be prepared – once signed up to MTD returns MUST be submitted using MTD compatible software, don’t sign up unless you are ready.
• Where a business pays by Direct Debit and email address must be provided.
• Business that pay by Direct Debit have to sign up at least 15 working days before they need to submit.

Important: The role of the Business Tax Account (BTA)

• A business does not have to set up a BTA for an agent to link clients to the new ASA.
• A business does not have to set up a BTA to be signed up to MTD by an agent (the journey only requires them to validate an email address).
• A business does need to have a BTA set up to authorise a new agent relationship.
• Once a business is signed up to MTD, the BTA will be used to send them notifications to file and provide a view of their MTD for VAT or MTD for IT returns, so whilst the journey itself does not require the business to sign up to BTA being in the service and interacting with HMRC digitally does.

Step 1 : Create agent services account (ASA)

• Before signing up to MTD you must first create an Agent Services Account (ASA). For guidance and to create an account go to: https://www.gov.uk/guidance/get-an-hmrc-agent-services-account
• You may already have an ASA if you’ve signed up for the Trust Registration Service (TRS), you do not need to create a new one for MTD.
• The ASA is currently only used for the TRS, MTD VAT and MTD Income Tax. The GG ID which is generated in this journey is the one you will use to access MTD services. You will still need your old GG IDs to access other HMRC online services.

Step 2: Copy existing agent/ client relationships

• Once the ASA is created, you can use the service to copy existing authorised SA and VAT relationships you already have with a business, by following the guidance to copy existing clients.
• The copy clients service is accessed from inside the ASA, once done you will see a ‘Client Relationships Copied’ message.
• This process requires you to input your existing GG IDs so that we can identify the relationship already exists.
• All the clients that exist under a specific GG ID are linked to the ASA (if you have multiple GG accounts you may need to repeat this step to link all of your clients).

Important: The client list cannot be viewed from within the ASA however you are now able to view the number of client relationship copied over from HMRC online services.

Step 3: Authorise MTD compatible software

• Before signing a client up to the pilot you must make sure you have compatible software, see: https://www.gov.uk/guidance/software-for-sending-income-tax-updates
• If using existing software you need to make sure your provider’s MTD capabilities have been enabled – contact your provider to discuss.
• You must delegate authority to the MTD compatible software (this applies to both new and existing software).

Important: Once signed up returns must be submitted using MTD compatible software. You cannot use the previous channel.

Step 4 : Sign business up to Making Tax Digital (MTD)

• Using the new GG ID generated at step 1, you can sign up clients by going to: https://www.gov.uk/guidance/agents-use-software-to-submit-vat-returns
• You will receive confirmation that the client’s information has been received. We will email you (usually within 24 hours, but can take up to 72 hours) confirming you can start using MTD software to submit the client’s return.
• You should tell your client you are now submitting returns through Making Tax Digital.
• Each client needs to be signed up individually or the client can sign themselves up.

Important: For an Agent, when connecting software to HMRC you must use your new ASA GG ID (provided at step 1). If you attempt to log in with another GG ID our systems will not be able to recognise the MTD relationship with your client so you will receive an error message and be unable to file the return.

For more information on Making Tax Digital go to GOV.UK and type ‘Making Tax Digital for VAT’ or ‘Making Tax Digital for IT’ into the search bar