Solution Properties
Solution ID:
260219143855160
Last Modified Date:
Wed Jun 10 12:22:25 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 non-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 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.

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

  1. Press Continue.

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
  • I'm signed up - continue setup - select this option if you have already signed up to MTD for Income Tax

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 credentials, 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.
  5. Select the correct business then press Continue. 

The Business overview window displays your company information.

  1. Press Confirm and complete setup.

TIP:

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

 Now you've set up MTD for Income Tax, you'll see new options in the software:

  • MTD for Income Tax Settings option in Connected services 
  • Assign Income Tax Categories in Nominal codes
  • Submit quarterly update in Nominal codes 

Assign Income Tax Categories

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.
[BCB:366:UKI - training sales:ECB]
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