Volunteer for the Making Tax Digital for Income Tax beta

How to volunteer for the Making Tax Digital (MTD) Income Tax beta in Sage Accounting. Submit quarterly updates, tax adjustments, and a final declaration directly to HMRC.

The MTD for Income Tax beta is designed to help test the new Income Tax regulations coming into force from April 2026.

These regulations will replace the current Self Assessment SA103 tax form submission.

 NOTE: There's no additional charge to your subscription for using this feature. 

You can volunteer if: 

• You only have one income source
• Your income isn’t from property
• You use traditional accounting, also known as 'accruals'
• You aren’t bankrupt or insolvent
• You’re signed up for MTD for Income Tax with HMRC: GOV.UK

By joining the beta, you commit to:

• Submitting quarterly income and expense updates via MTD
• Completing a final declaration including informing HMRC of tax allowances and adjustments. This replaces the current SA103 form for the 2025/2026 tax year

1. From Settings, go to Business settings.
2. Within Financial settings, select Income Tax.
3. Follow the Setup tasks to get started.

Once you've joined the beta:

There's a new Income Tax category field, which you can view in the chart of accounts.

If you're using standard ledger accounts, we'll automatically assign the Income Tax category to your income and expense ledger accounts.

If you're using custom ledger accounts, map these to the relevant Income Tax category from the chart of accounts.

We add a Tax report for managing your quarterly updates.

What's next?

• Connect your software to HMRC
• View your Income Tax summary
• Submit Income Tax quarterly update
• Assign Income Tax categories