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.

Agent MTD step-by-step guide: 
 

1. Create an Agent Services Account (ASA): Click here to watch an HMRC video, and here to read HMRC’s instructions on how to create your ASA if you don’t already have one.
2. Gain authorisation from each client: Click here for instructions on how to transfer existing client authorisations for you to file tax returns on their behalf. New clients may authorise you to file their taxes using a digital handshake.
3. Authorise Ftax for MTD: As an agent you must inform HMRC Ftax will be used both to submit MTD for VAT and MTD for IT tax returns. This may be done by clicking ‘v’ to the right of your Ftax Account menu bar and selecting ‘HMRC Auth‘. Make sure this links to your MTD ASA and not to your Online Services for Agents account. 
4. Sign up your clients for MTD: Click here to sign up your eligible clients with HMRC for MTD by entering their income details, National Insurance number, and choosing their start dates.

HMRC’s own step-by-step agent MTD guide may be read here.