Making Tax Digital for VAT (MTD for VAT) Resource Hub

Welcome to your Making Tax Digital for VAT resource centre. We’ve designed this hub to take the complexity out of digital tax. Since the 2022 mandate, keeping digital records is essential for every VAT-registered business. From your initial 'digital handshake' with HMRC to recording your final payment, we’re here to ensure your transition to digital filing is simple and stress-free.

1. Getting started with VAT

Before you can file your first return, you must ensure your QuickBooks account is configured to match your specific VAT scheme and business requirements.

• Making Tax Digital for VAT: Everything you need to know: A comprehensive overview of key dates, setup steps, and compliance requirements.
• Getting started with VAT: An overview of how VAT works in QuickBooks.
• Understanding VAT codes: A guide to the default codes used to categorise your sales and purchases.
• Set up and manage VAT: Steps for choosing your accounting scheme (Cash vs. Standard).

2. Connecting to HMRC (The "Digital Handshake")

To comply with MTD for VAT rules, your software must have a "digital link" to HMRC. This one-off authorisation allows QuickBooks to talk directly to HMRC's systems.

• Connect QuickBooks to HMRC for MTD for VAT: How to authorise the connection using your Government Gateway credentials.
• Moving from paper or spreadsheets to digital record-keeping: Learn why manual records are no longer compliant and how to transition your data into QuickBooks.
• Accountant's guide to MTD setup: For tax agents using an Agent Services Account (ASA).

3. Filing and recording your VAT returns

QuickBooks automates your 9-box VAT return. To complete a period, you must first submit the digital return and then record the payment in your books.

• Submit a VAT return to HMRC using MTD in QuickBooks: Use this guide to review your figures, use the VAT error checker, and send your return to HMRC.
• How to file a VAT return and record payments: Once submitted, use this guide to record the actual bank payment or refund to keep your records accurate.
• Adjusting a VAT return: How to correct errors or include penalties before you submit.
• Using QuickBooks bridging software: For businesses keeping primary records in spreadsheets.

4. Troubleshooting and VAT errors

If you encounter a connection issue or a mismatch in your figures, these resources will help you resolve them quickly.

• Fix MTD connection issues and errors: Resolving common "Authorisation" or "Rejected" messages from HMRC.
• Use VAT reports to check what you owe: How to run a VAT Liability Report to audit your transactions.
• Manage VAT exceptions in QuickBooks: Handling transactions from a previous period that were entered after the return was filed.
• Turn off VAT in QuickBooks: Use this guide if you have deregistered from VAT with HMRC or need to disable the VAT centre in your settings.

Preparing for Self-Assessment

While VAT is a quarterly cycle, you still need to prepare for your annual or quarterly Income Tax obligations.

• Making Tax Digital: Comparing Income Tax vs. VAT: Understand the difference between these two separate digital obligations and how they overlap.
• Understanding Income Tax in QuickBooks: A guide to how QuickBooks tracks your taxable profit and helps you prepare for your tax return.
• Self Assessment for Income Tax Checklist: A step-by-step list to ensure your books are reconciled and your records are complete before you file.
• Making Tax Digital for Income Tax Resource Hub: If you are a sole trader or landlord, visit our dedicated hub to prepare for the upcoming 2026 digital reporting changes.

Things to know

• Digital record-keeping: HMRC requires every transaction to be recorded digitally (Date, Amount, and VAT Rate). Manually typing totals into a portal is no longer permitted. See:
• Penalty points system: From 2023, HMRC uses a points-based system for late submissions and payments. Each late return earns one point; once a threshold is reached, a £200 penalty is issued.
• 6-year rule: You must keep your digital VAT records for at least 6 years. QuickBooks stores this data securely for you in the cloud.

Get expert support

• QuickBooks Community: Making Tax Digital (MTD) Drop-In Q&A Session
• Expert Support: If you need to speak to a person, find out more about how and when to contact QuickBooks support.
• Digital Assistant: Chat with our Digital Assistant 24/7 by selecting Help (?) within your QuickBooks account.