Error messages can really put a damper on things, but don't worry. We'll show you what to do if you're seeing an error message or having issues when connecting to Making Tax Digital (MTD) in QuickBooks Online.
Here's a list of things to review. Feel free to select the links to jump to the relevant sections.
- Make sure the MTD feature is setup in your QuickBooks
- Check the email from HMRC
- Use the correct sign in credentials
- Check that your VAT number matches HMRC's records
- Update your VAT accounting period
- Fix error (CLIENT_OR_AGENT_NOT_AUTHORISED)
- Fix error "taxReturnInvalidMTDEndDate"
- Check for pending obligations with HMRC
Make sure the MTD feature is setup in your QuickBooks
If you're unable to submit a return under MTD, it could be because the MTD feature hasn't been set up in QuickBooks Online yet.
To resolve this, you'll need to link your QuickBooks Online account with HMRC's MTD service by providing your HMRC credentials.
Check the email from HMRC
When you try to connect your QuickBooks Online account with MTD to submit a return, it's important to check the email confirmation from HMRC. This email will confirm if your connection has been successful. This can take up to 72 hours.
Inside the email, you'll also find your new MTD credentials. These credentials are necessary to set up the MTD feature in QuickBooks.
Note: All VAT-registered businesses must now be enrolled in MTD for VAT. HMRC will automatically enrol all remaining businesses for MTD for VAT, unless they are exempt or have applied for exemption.
Use the correct sign in credentials
When setting up MTD in QuickBooks, use only the official MTD credentials provided by HMRC via email. Using any other login information may cause authentication issues, delays or even submission failures for your VAT return.
If you're an accountant or bookkeeper, remember to create an agent services account specifically for HMRC's MTD services, separate from your HMRC online services for agents account.
Check that your VAT number matches HMRC's records
Make sure that the VAT registration number you use in QuickBooks is the same as the one you use for your VAT purposes with HMRC.
You can doublecheck this in your VAT settings before submitting your MTD return.
Update your VAT accounting period
To make sure your VAT returns are filed accurately and on time, it's important to keep your VAT accounting period up to date.
If you're facing difficulties in submitting a return under MTD, there could be a few reasons for this.
- Check the start and end dates for your VAT accounting period and make sure it matches with HMRC's records.
- You might have an option period where it's marked as 'filed' in QuickBooks or the HMRC system, and during that time, you don't have to file any tax returns.
- You might have a pending or unsuccessful VAT return submission (indicated by an amber or red icon). To fix this:
- Go to Taxes.
- Next to the return, select Go for it and follow the instructions.
Note: Don't select Resubmit return for a rejected filing. QuickBooks will try to resubmit it in the same manner as the original filing.
- You might have a VAT return that is more than a year old. To fix this:
- Mark the period as Filed to receive the correct dates from HMRC.
- File your most recent submitted return.
- Close your books.
- If you submitted a late return and marked it as filed, use the Help icon in QuickBooks to reach out to our Support for help.
Fix error (CLIENT_OR_AGENT_NOT_AUTHORISED)
The error message may appear if:
- You need to reauthorise the connection between QuickBooks Online and HMRC.
- You haven't entered the correct credentials for MTD when setting up MTD in QuickBooks.
- The VAT registration number in QuickBooks doesn't match HMRC's records. If you've been issued a new VAT registration number, you'll need to update this in your VAT settings.
If you're an accountant/bookkeeper:
- You don't have permission from your client to make VAT submissions on their behalf. You can send them an authorisation request by logging into your agent services account.
- You haven't linked your clients to your agent services account for MTD.
- You haven't set up the MTD for VAT feature in QuickBooks Online.
Fix error 'taxReturnInvalidMTDEndDate'
This error means that you're trying to file your VAT return before the tax period end date. To fix this, make sure you submit your return at the end of the tax period.
Other possible reasons this error shows and how to fix it:
- The MTD for VAT feature isn't set up. To fix this, set up the MTD feature in QuickBooks Online before you submit a VAT return.
- You don't have the necessary permission to submit a VAT return. If your MTD connection was set up by an accountant or member of your team and you didn't enter your own details, reach out to the person who set up the connection.
If you're an accountant/bookkeeper:
- Make sure you're using the correct agents services account to use HMRC's MTD services.
- You may need to link your clients to your agent services account for MTD.
Check if you have pending obligations with HMRC
If you have any open obligations with HMRC, they will not process your return until these obligations are fulfilled. Make sure that you don't have any outstanding obligations before submitting your return.
To check your pending obligations, sign into your HMRC online account. Make sure that everything is up to date and settled before attempting to submit a return through MTD again.
Note: To send submissions to HMRC for the company file you're using, you may need to enable yourself. This can be done in the settings of your company file.
Check the status page
Think there might be a site-wide problem? The first place to look is the QuickBooks status page. Here you'll find real-time reports of any outages when they happen, and when they’ve been resolved. You can also subscribe to get incident updates if you wish.
We're here to help
If you have questions about MTD, or need help getting connected or fixing an error, let us know. Sign in to QuickBooks and start a discussion with a qualified QuickBooks Online expert in our community.