Solution Properties
Solution ID:
260219151830800
Last Modified Date:
Wed Jun 10 12:21:43 UTC 2026
Taxonomy Path:
Case category//How do I...//governmental/legislative compliance
Author:
[email protected]
Set up your non-property clients for Making Tax Digital for Income Tax
Description

How to set up MTD for Income Tax in Sage to start submitting your clients' information to HMRC.

If they have a property company, follow our alternative Set up your property clients for Making Tax Digital for Income Tax article.

NOTE:

You'll need to use Sage 50 Accounts Client Manager software. If you're a customer, 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 'Before you set up Making Tax Digital' window.

Before you set up Making Tax Digital window.

 

  1. Select the Create an agents services account link if you don't have an account already. This takes you to GOV.UK.
  2. Select the Request client authorisation link if you haven't requested this already. This takes you to GOV.UK.
  3. Press Confirm and continue setup.

This opens the 'Sign up your client Making Tax Digital for Income Tax' window.

Sign up your client 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.

Authorise Sage to share updates with HMRC window.

  1. Press Authorise with HMRC.

    NOTE:

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

  2. 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 Agent Services account User Id and Password, then press Sign in.
  3. Choose Give permission on the 'Allow your software to connect with HMRC' window.

    TIP:

    If the software asks for ID information, this is for the Government Gateway credentials entered. 

     
  4. Enter your client's National Insurance number on the 'Find their business' window then press Continue.
  5. Select the correct business then press Continue.

Select their business window.

The 'Client's business overview' window displays the company information.

Client's business overview window.

  1. Press Confirm and complete setup.

NOTE:

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.

Next steps

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 
[BCB:449:Sales - SFA UK:ECB]
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