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What is Software authorisation?
Last verified 31 October 2026
Software authorisation is giving your compatible Making Tax Digital software permission to talk to HMRC for you. Until you do it, the software cannot create digital records for the service or send quarterly updates.
Why it matters to landlords
HMRC's guidance says sole traders and landlords select the connect option in their software, sign in with the user ID and password from sign-up, pass an identity check if asked and give permission. You must repeat the authorisation every 18 months, and your software should remind you. You normally do not repeat the identity check.
Authorising comes before records: connect the software first, then check your accounting period. By default the software uses the tax year, 6 April to 5 April. If your accounting period runs from 1 April to 31 March, select calendar update periods before your first quarterly update, as HMRC says you cannot change update periods after sending one. If you use an agent, they must be authorised to act for you before you sign up, and they authorise the firm's software through their agent services account.
Example
Maria buys software in May 2026, selects connect and signs in with her Self Assessment details. She sees that her accounting period is the tax year, so no change is needed. She diarises the date 18 months later, as her software will prompt her to renew.
How to Switch MTD Software, Even Mid-Year →
Related terms
- MTD compatible software
- Bridging software
- Government Gateway
- MTD agent authorisation
- Calendar update periods