How to update your Making Tax Digital (MTD) for Income Tax settings

This article explains how to update your Making Tax Digital (MTD) for Income Tax settings in FreeAgent.

Please note that FreeAgent’s MTD for Income Tax functionality is currently in pilot. Therefore, you’ll only have access to the functionality if you work with an accountant who is a FreeAgent partner and your business is eligible for HMRC’s pilot scheme. The functionality currently won’t be available if you have an unincorporated landlord account.

Once you’ve signed up to MTD for Income Tax, also known as Making Tax Digital for Income Tax Self Assessment (MTD for ITSA), and set up the connection in FreeAgent, an ‘MTD ITSA Business ID’ and ‘MTD ITSA Start Date’ will be added to your user profile in FreeAgent. Please see below for details on how to check these and update the settings if you need to.

Navigate to your user profile

Begin by selecting ‘Settings’ from the drop-down menu in the top-right corner of the screen and selecting ‘Users’.

Screenshot_2021-10-18_at_14.23.54_copy_9.png

Select your name from the list.

Screenshot_2022-03-17_at_12.09.11.png

Updating your MTD ITSA Business ID

When you sign up for MTD for Income Tax with HMRC, you’ll be issued a 15-digit ID number from HMRC.

When you set up the MTD for Income Tax connection in FreeAgent, FreeAgent will automatically populate the ID number that's related to your National Insurance number in HMRC’s records in the ‘MTD ITSA Business ID’ field. If you’ve registered more than one business for MTD for Income Tax, you can select the relevant ID number for this business from the drop-down menu.

Screenshot 2022-04-11 at 09.34.42 copy.png

Once you’ve made changes, select ‘Save Changes’ at the bottom of the screen to complete the process.

Updating your MTD ITSA Start Date

When you set up the MTD for Income Tax connection in FreeAgent, the ‘MTD ITSA Start Date’ will default to the beginning of the first tax year that your business is required to make MTD for Income Tax submissions. If you need to update this date, select the drop-down calendar to the right of the date and select the relevant date.

Screenshot 2022-04-11 at 09.34.42 copy 2.png

Once you’ve made changes, select ‘Save Changes’ at the bottom of the screen to complete the process.

Did you find this article useful?