Solution Properties
Solution ID:
260604103250373
Last Modified Date:
Thu Sep 24 13:49:29 UTC 2026
Taxonomy Path:
Case category//How do I...//governmental/legislative compliance
Author:
[email protected]
Set up your 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 non-property company, follow our alternative Set up your non-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

Before you start

Before you set up, you need to: 

  • Have your own Agent Services Account (ASA)
  • Ensure your client has registered you to submit on their behalf as an Agent
  • Ensure your client has set up MTD for Income Tax in their software if you connect to their data via Remote Data Access (RDA)
  • Have your clients National Insurance number

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.

  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. 

  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.

  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 property business then press Continue.  If they only have one business, the following appear on the window:
  • NI number
  • Business name
  • Address
  • Type of business
  • Update period

You'll then see the 'Their business' window. 

  1. Select Yes or No if your client shares ownership of any properties in the business then press Continue.
Selected YesSelected No

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

  1. Select Yes or No to the question 'Does your client's accounts already reflect their personal share of the income and expenses for this business?'
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. 

  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 their Ownership percentage is 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 their ownership share?'

  1. Enter the percentage then press Continue.

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

 

  1. Press Confirm and complete setup.

You'll then see the '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

 

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