Signing Up to the MTD IT Pilot Scheme: What You Need to Know

Making Tax Digital for Income Tax Self Assessment (MTD IT) is on the horizon, and HMRC has launched a pilot scheme to help businesses and individuals prepare early. If you’re considering joining the pilot or on behalf of a client, here’s a step-by-step guide on what’s involved and what to expect.

MTD IT Criteria: https://www.gov.uk/guidance/check-if-youre-eligible-for-making-tax-digital-for-income-tax

MTD signing up information: https://www.gov.uk/guidance/sign-up-your-business-for-making-tax-digital-for-income-tax

Capium Support - From Start to Finish

Please reach out to Capium if you are interested in the scheme and we will help & guide you every step of the way.


The Process


Step 1: Confirm Sign-Up to MTD IT

Before anything else, you’ll need to confirm that your client has been signed up to MTD IT. Please view this video walkthrough of the process, which you should follow carefully: How to Register Clients for MTD IT via HMRC – A Step-by-Step Guide for UK Accountants (2025–26) - YouTube Once complete, ensure you have the client’s Business IDs for future reference.

Step 2: Identify Income Sources

MTD IT requires reporting across multiple streams of income. Common sources include:

  • Self-Employment

  • PAYE

  • Property / Landlord income

Each source must be recorded and reported separately through the MTD system.

Step 3: Populate the Bridging Files

The next stage is to prepare and submit bridging files. This involves:

Populating the MTD spreadsheet for each income source (self-employment, PAYE, property).


Template attached


Step 4: Access the MTD IT Module

Capium will enable the new MTD IT module on your account. This allows you to begin the reporting process and keep everything aligned with HMRC’s requirements.

Step 5: Authorise the Software

You’ll need to authorise your software provider (such as Capium) to act on your behalf. This is done via HMRC’s secure authorisation process and is essential before any submissions can be made.

Step 6: Calendar Election

Clients must set quarterly reporting dates (known as a calendar election). These reporting periods define when your quarterly submissions are due and ensure HMRC receives regular updates of your income and expenses.

Step 7: Submit Bridging Files (Quarterly)

  • Once everything is in place, you’ll submit bridging files on a quarterly basis, ensuring HMRC has the most up-to-date figures across all income sources.
  • Upload the spreadsheets to the MTD system using the bridging tool.

Next Steps

After completing the above, you’ll be ready to operate fully within the MTD IT framework. This means:

  • Submitting quarterly updates to HMRC.

  • Maintaining digital records for all income sources.

  • Preparing for the official rollout of MTD IT.

Need Support?

Getting set up on MTD IT can feel complex, but with the right guidance it’s manageable. If you need help:

  • Confirming sign-up and business IDs

  • Populating and submitting bridging files

  • Setting up calendar elections

  • Authorising your software provider

…our team is here to guide you through every step.