MTD VAT - sign up guidance

The sign-up process for MTD VAT on gov.uk was decommissioned in November 2022 when HMRC transferred most remaining VAT records from the old VMF database to the new ETMP database and signed them up to MTD VAT as part of that transfer. HMRC did not automatically sign up:

• businesses that have applied for or agreed a digital exclusion exemption, or
• annual filers (these businesses were signed up automatically in May 2023)

Some VAT records that appeared to be dormant were archived rather than being transferred to the new database.

Businesses newly registering for VAT are now signed up automatically to MTD VAT as part of the registration process. If a business intends to claim a digital exclusion exemption, they may need to ask HMRC to switch on the online VAT return, so they have access. 

MTD ITSA - sign up guidance

HMRC relaunched private beta testing of MTD ITSA in April 2024. Individual taxpayers with income from self-employment and/or property, and their agents, can now sign-up voluntarily from gov.uk (link for agents, link for taxpayers), in advance of mandation starting from April 2026.

Before signing up, it is important to understand the MTD ITSA requirements. In particular, volunteers need to: 

• Choose a suitable software product and speak to the developer to check exactly what MTD ITSA functionality is included in their product. Note that some developers require separate licences for each income source in MTD.
• Have reliable, regular bookkeeping using accounting software in place. The bookkeeping needs to be done by the taxpayer or their main agent (multiple agent functionality is not available yet). 
• When signing up to private beta testing you have to sign up all self-employment and property income sources, ie, it is not possible to sign up just property or self-employment income or one of multiple trades.
• Meet the eligibility criteria for private beta and expect that they will continue to do so.

The first step of the sign-up process can be used to check eligibility against an HMRC list of eligible taxpayers. Note that this check will not identify cases where there is joint property, furnished holidays lettings or an accounting date other than 31 March to 5 April but such cases should not sign up.

• Have the information needed to sign up: national insurance number, date of birth, start date for each trade and for property income, accounting method (cash or traditional), business name, address, nature of trade.
• Have no plans to change accounting date, accounting method or to carry back losses.
• Agents must have an agent services account and be authorised to act for the client. This can be done by linking to the existing authority for self assessment in the HMRC online services for agents account. 
• Agents must have the agreement of their client and an appropriate engagement letter.

Further information on MTD ITSA:

• MTD income tax self assessment 
• Making Tax Digital for Income Tax