It's important to note before you sign up for MTD:
- The last VAT Return you want to submit under the Government Gateway has been reconciled and submitted. (Once you are signed-up to MTD you will no longer be able to access the old service and will need to file all your VAT returns from that point onwards using MTD-compatible software.)
- You should sign-up for MTD at least a week before your filing deadline so that you are registered for the new service in good time to submit your return.
After signing up, you will then need to link your software to MTD - a process known as ‘authorising’ the software. We’ll show you how in step 2.
Sign up for MTD on HMRC website
The first step you need to take is to sign up for MTD on the HMRC website. This lets the government know that you intend to submit your next VAT return in an MTD compliant way. Make sure you have your Government Gateway user login details and information about your business such as your VAT number to hand as you will be asked to provide these to sign up.
- Visit the gov.uk website.
- Click Sign up your own business for Making Tax Digital for VAT and follow the on-screen prompts.
- When prompted, enter your Government Gateway credentials then click Sign in. If your business is not yet eligible to sign up for MTD, a message will appear to advise this.
- Follow the on-screen prompts, providing any requested information.
- When you receive a verification email, click the link in the email to verify your email address. This can take up to 72 hours to be delivered to you, so please allow yourself enough time for this to happen when you are signing up.
- Read and accept the terms of participation.
HMRC will then confirm if you can start submitting VAT Returns under MTD – this confirmation usually occurs within 24 hours. When submitting under MTD, you can continue to use your existing Government Gateway user ID and password credentials.
*QuickBooks MTD software currently supports Standard, Cash and Flat Rate schemes. QuickBooks Bridging Software supports Standard and Cash schemes. Annual submissions are not currently supported but will be coming soon. Businesses whose home currency is not GBP are currently not supported for MTD.