How to Connect Your MTD Software to HMRC

Before you can submit your first quarterly update under Making Tax Digital, you need to connect your MTD software to HMRC. This is a one-time authorisation process that allows your software to communicate with HMRC's systems on your behalf.

The process is straightforward, but it involves a few steps that can be confusing if you have never done it before. This guide walks you through everything, from preparation to troubleshooting.

What You Need Before You Start

1. A Government Gateway Account

Your Government Gateway account is your login for HMRC's online services. If you file Self Assessment, you almost certainly already have one. You need your: - User ID — a 12-digit number (e.g. 123 456 7890 12) - Password — the password you set when you created the account

If you have lost your Government Gateway credentials, you can recover them through HMRC's website. Allow a few days for this process — do not leave it until the day you want to submit.

2. MTD for Income Tax Registration

You must be registered for Making Tax Digital for Income Tax through your HMRC account. This is a separate step from having a Government Gateway account or being registered for Self Assessment.

To register: 1. Log into your Government Gateway account 2. Navigate to the Making Tax Digital section 3. Follow the sign-up process for MTD for Income Tax

Registration can take up to 72 hours to process. Once approved, you will see MTD for Income Tax listed in your HMRC account services.

3. Your MTD Software Installed or Account Created

You need to have your chosen MTD software ready. Whether that is ClearMTD, FreeAgent, Xero, or another provider, create your account and complete the basic setup before attempting the HMRC connection.

The Connection Process

Step 1: Initiate the Connection From Your Software

In your MTD software, look for an option like "Connect to HMRC," "Authorise HMRC," or "Link HMRC account." The exact wording varies by provider, but the function is the same — it starts the authorisation process.

When you click this, your software will redirect you to HMRC's website. This is normal and expected. You are about to grant your software permission to communicate with HMRC on your behalf.

Step 2: Log Into Government Gateway

You will be taken to the Government Gateway login page. Enter your User ID and password. This is the same login you use for Self Assessment and other HMRC services.

If you have two-factor authentication enabled (which HMRC recommends), you will also need to complete the second verification step — usually a code sent to your phone.

Step 3: Grant Permission

After logging in, HMRC will display a permissions screen. This explains what your software is requesting access to — specifically, the ability to: - View your MTD for Income Tax data - Submit quarterly updates on your behalf - Submit End of Period Statements and Final Declarations

Review the permissions and click "Grant authority" or "Allow." This is the authorisation step that links your software to your HMRC account.

Step 4: Return to Your Software

After granting permission, you will be redirected back to your MTD software. The software will confirm that the connection was successful. You should see a confirmation message indicating that your HMRC account is now linked.

Step 5: Verify the Connection

Most software providers allow you to verify the connection by retrieving basic information from HMRC — such as your UTR number or your MTD obligations (which quarters you need to submit for). If this retrieval works, your connection is confirmed and you are ready to submit.

What Is Actually Happening (The Technical Bit)

Behind the scenes, this process uses a standard security protocol called OAuth 2.0. Here is what it does in plain terms:

  1. Your software asks HMRC: "Can I act on behalf of this user?"
  2. HMRC asks you: "Do you want to let this software act on your behalf?"
  3. You say yes by logging in and granting permission
  4. HMRC gives your software a secure token — a digital key that proves you authorised it
  5. Your software uses this token to submit data to HMRC on your behalf

At no point does your software see or store your Government Gateway password. The token is a separate, limited-scope authorisation that can be revoked at any time.

How Long Does the Connection Last?

HMRC authorisations typically last for 18 months. After this period, you will need to re-authorise by going through the connection process again. Your software should notify you when re-authorisation is needed.

If you change your Government Gateway password, you may need to re-authorise sooner. And if you revoke the authorisation through your HMRC account, the connection is broken immediately.

Troubleshooting Common Issues

"My Software Cannot Connect to HMRC"

Check your internet connection. The authorisation process requires a stable internet connection to communicate with HMRC's servers.

Try a different browser. Some users experience issues with specific browsers. Chrome, Firefox, and Edge all work with HMRC's authorisation pages.

Clear your browser cache. Cached data from a previous session can sometimes interfere with the authorisation flow.

Check HMRC's service status. HMRC's systems occasionally have planned or unplanned downtime. Check their service availability page before assuming the problem is on your end.

"I Get an Error After Granting Permission"

Check your MTD registration. If you have not yet been approved for MTD for Income Tax, the authorisation will fail. Verify that MTD for ITSA appears in your HMRC account services.

Ensure you are using the correct Government Gateway account. If you have multiple Government Gateway accounts (which some people do), make sure you are logging in with the one linked to your Self Assessment and MTD registration.

"My Software Says the Connection Has Expired"

This usually means the 18-month authorisation period has ended. Simply go through the connection process again — it takes less than two minutes.

"I Want to Disconnect My Software"

You can revoke your software's authorisation at any time through your HMRC online account. Navigate to your account settings, find the list of authorised software, and remove the connection. This does not delete any submissions already made.

Connecting an Accountant

If your accountant submits MTD updates on your behalf, the process is slightly different. Your accountant uses their own agent credentials to access your MTD account. You need to authorise your accountant as an agent through HMRC — this is separate from the software authorisation.

Your accountant will guide you through this process. Typically, HMRC sends you a code that you share with your accountant, and they use it to link their agent account to your taxpayer account. For more on how the quarterly submission process works, see our step-by-step guide.

Security Considerations

The authorisation process is designed to be secure:

  • Your Government Gateway password is never shared with your software. The OAuth process ensures your credentials stay between you and HMRC.
  • You can revoke access at any time. If you stop using a piece of software or switch providers, revoke its authorisation through your HMRC account.
  • Tokens have limited scope. Your software can only do what you authorised — submit MTD data. It cannot access other HMRC services or make changes to your tax affairs beyond MTD submissions.
  • HMRC monitors authorisations. Unusual activity on your account may trigger additional security checks from HMRC.

Getting Connected With ClearMTD

ClearMTD makes the HMRC connection process as simple as possible. After creating your account, you are guided through each step with clear instructions. The connection typically takes under two minutes, and you receive immediate confirmation that everything is working.

If you encounter any issues during the connection process, ClearMTD's support team can help you troubleshoot — something you will not get from HMRC's general helpline for a software-specific issue.

Create your free ClearMTD account and connect to HMRC in minutes.

For a broader overview of how MTD works, see our guide on what is Making Tax Digital.

Frequently Asked Questions

Do I need to connect to HMRC for each quarterly submission?

No. The initial connection (authorisation) lasts approximately 18 months. During that time, your software can submit all your quarterly updates, End of Period Statements, and Final Declarations without you needing to re-authorise.

Can I connect multiple MTD software providers to my HMRC account?

Technically, yes — you can authorise more than one software provider. However, submitting quarterly updates from multiple providers simultaneously could cause confusion with your HMRC records. It is best to use one provider for all your MTD submissions.

What happens to my data if I revoke the software's access?

Revoking access stops the software from submitting new data to HMRC. It does not delete any submissions already made or remove data from your HMRC account. Your filing history remains intact.

Is the connection process the same for sole traders and landlords?

Yes. The authorisation process is identical regardless of whether you are connecting for self-employment income, property income, or both. The type of income you report is determined within the software, not during the connection process.

Will I receive any confirmation from HMRC after connecting?

You will see the authorisation in your HMRC online account under your authorised software list. HMRC does not typically send a separate email or letter confirming the connection. Your software's confirmation screen is your primary verification.

Next Steps