Solution Properties
Solution ID:
260603151457697
Last Modified Date:
Wed Jun 10 12:22:42 UTC 2026
Taxonomy Path:
Case category//How do I...//governmental/legislative compliance
Author:
[email protected]
Set up Making Tax Digital for Income Tax for a property company
Description

How to set up Making Tax Digital (MTD) for Income Tax in Sage to start submitting your information to HMRC.

NOTE:

If you have a property company, follow our alternative Set up Making Tax Digital for Income Tax for a non-property company article.

 

If you're an accountant, follow our alternative article to set up Making Tax Digital for Income Tax.

Cause
Resolution

Set up MTD for Income Tax

  1. Log in to Sage 50 Accounts as Manager.
  2. Go to Apps and add-ons, and select Learn more in the MTD for Income Tax tile.
  3. Press Get started.

If you're already using connected services, you can open from Connected services then MTD for income tax.

You'll then see the 'Set up Making Tax Digital for Income Tax' window.

  1. Select Connect company to a Sage account.

Set up Making Tax Digital for Income Tax window.

This opens the 'Connect your company to a Sage account' window.

  1. Enter your name then press Continue.
  2. Enter your company details then press Continue.
  3. Log in with your Sage account email address. Use the Sage account of the person who is the account owner.
  4. Press Continue.
  5. Enter your password then press Log in.

You'll see the message 'Great news, you're connected' with your company name and Sage account email.

  1. Press Continue.

You'll see the 'Set up Making Tax Digital for Income Tax' window to sign up on HMRC.

Set up Making Tax Digital for Income Tax window.

  1. Select the relevant option from:
▼ Sign up on HMRC

Select this option to sign up to MTD for Income Tax on GOV.UK.

  1. Press Sign up now and complete the information required.

Sign up for Making Tax Digital for Income Tax window in gov.uk.

▼ I'm signed up - continue setup

Select this option if you have already signed up to MTD for Income Tax. You'll then see the 'Authorise Sage to share updates with HMRC' window.

Once you're signed up, the next step is to authorise Sage to share updates with HMRC. You can then submit your quarterly submission values.

  1. Press Authorise with HMRC.

NOTE:

You'll need your Government Gateway login details and your National Insurance number.

Authorise Sage to share updates with HMRC window.

  1. Press Continue on the 'Allow your software to connect with HMRC' window.

The 'What you will need' window appears.

  1. Press Sign in to the HMRC online service.
  2. Enter your HMRC User ID and Password, then press Sign in.
  3. Choose Give permission on the Allow your software to connect with HMRC window.
  4. Enter your National Insurance number on the Find your business window, then press Continue.

Enter your National Insurance number window.

  1. Select the correct business then press Continue. If you only have one business, the NI number, business name, address, type of business and update period appear on the window.
  2. Select Yes or No if you share ownership of any properties in the business.
Selected YesSelected No
  1. Select Yes or No if you share ownership of any properties in the business.
BackSelected YesSelected No

If you selected 'Yes' you share ownership of any properties in the business:

  1. Select Yes or No to the question 'Do your accounts only reflect your personal share of the income and expenses for this business?'

Your business window with question about accounts reflecting personal share.

BackYes to accounts reflecting personal shareNo to accounts reflecting personal share

If you select 'No', you'll see the 'Complete setup for Making Tax Digital for Income Tax' window. 

Complete setup for Making Tax Digital for Income Tax window with Ownership percentage as 100%.

  1. Press Confirm and complete setup.

TIP:

You can change the Update period in the Making Tax Digital for Income Tax Settings window

The next step is to Assign Income Tax Categories to your Profit and Loss nominal codes.

  1. Select Assign Income Tax Categories on the Making tax Digital is now set up window or press Done to close.
BackFinished

If you select 'Yes', you'll see the 'Complete setup for Making Tax Digital for Income Tax' window.

This shows that your Ownership percentage is 100%.

Complete setup for Making Tax Digital for Income Tax window with Ownership percentage as 100%.

  1. Press Confirm and complete setup.

TIP:

You can change the Update period in the Making Tax Digital for Income Tax Settings window

The next step is to Assign Income Tax Categories to your Profit and Loss nominal codes.

  1. Select Assign Income Tax Categories on the Making tax Digital is now set up window or press Done to close.
BackFinished

If you select 'No', you see the question 'What is your ownership share?'

Your business window with question to enter your ownership share.

  1. Enter the percentage then press Continue.

You'll then see a window with your 'Ownership percentage'.

Complete setup for Making Tax Digital for Income Tax window with Ownership percentage shows 50% as an example.

  1. Press Confirm and complete setup.

You'll then see the 'Making Tax Digital is now set up' window.

Making Tax Digital is now set up window.

The next step is to Assign Income Tax Categories to your Profit and Loss nominal codes.

  1. Select Assign Income Tax Categories on the Making tax Digital is now set up window or press Done to close.
BackFinished

The onboarding process is now complete.

Start again

 

[BCB:281:UKI Wizard:ECB]
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