Set up MTD (Making Tax Digital) for VAT in QuickBooks

Here's how to enable MTD for VAT in QuickBooks Online:

How to connect:

1. Go to Taxes in the left menu (Take me there)
2. Select Set up MTD
3. Click Authorise now, then select Continue
4. Log in to HMRC in the pop-up window using your Government Gateway credentials:
   • Enter your HMRC Government Gateway user ID and password
5. Select Give permission to allow QuickBooks to connect with HMRC
6. Once authorised, click Continue, then select Go to Taxes

When completed, you’ll see an MTD badge on your Taxes dashboard, confirming that MTD for VAT is enabled. You’re now ready to submit VAT returns digitally to HMRC.

If you’re using the MTD feature in QuickBooks Online, you can set up VAT reminder emails to help you file on time and avoid late penalties.

Before you begin

• Make sure you’ve set up VAT and enabled MTD in QuickBooks.
• Only primary or company admins can receive reminder emails.
• You can set up one reminder schedule, with up to two emails per VAT period.
• If you make changes, your previous reminder schedule will be replaced.

Set up VAT reminders

1. Go to Taxes and select VAT (Take me there).
   Note: Navigation may vary if Payroll or other tax types are not set up.
2. Select Set reminders.
3. Choose the Email address of the Primary or Company admin who should receive the reminder.
4. Under First reminder, choose when to receive it — for example, 30, 21, 14, or 7 days before the due date.
5. Under Second reminder, choose 5, 3, or 1 day(s) before the due date.
   Tip: Select None if you only want one reminder.
6. Select Save.

Edit or turn off VAT reminders

1. Go to Taxes, then select VAT.
2. Select Edit reminders.
3. Make any changes you need. To turn off reminders, choose Turn off reminders.
4. Select Save.

HMRC requires reauthorisation every 18 months to maintain secure access. QuickBooks will notify you in advance when reauthorisation is needed.

How to reauthorise:

1. Follow the prompts in QuickBooks when reauthorisation is required
2. Log in using your HMRC credentials in the pop-up window

After reauthorisation, QuickBooks will reconnect, and you can continue submitting VAT.

To make changes to your MTD settings:

1. Select the ⚙️ gear icon, and then Account and settings
2. Go to the Advanced tab
3. Next to Making Tax Digital, select the 🖉 pencil icon to update your preferences

Before disconnecting MTD, please note the following:

• QuickBooks will stop sharing data with HMRC.
• Digital VAT returns can no longer be submitted through QuickBooks.
• You can reconnect to MTD at any time by reauthorising.

How to disconnect:

1. Select the ⚙️ gear icon, then go to Account and settings
2. Open the Advanced tab and locate Making Tax Digital
3. Select Learn how to disconnect, then click Continue
4. Confirm by selecting Disconnect, then return to QuickBooks