From April 2019, all eligible UK VAT-registered businesses will have to keep their financial records in a digital form and submit their VAT returns using approved software. Find out whether you are eligible here.
This article is for accountants who are eligible, or have clients who are eligible for Making Tax Digital (MTD) or signed up for MTD voluntarily.
Once you have set up an agent services account, you're required to authorise QuickBooks to interact with HMRC in order to submit VAT returns on your clients' behalf.
On your QuickBooks for Accountants client dashboard you should see the Making Tax Digital badge as shown below. Click in the dashboard to start the authorisation.
If you do not see this badge it is possible that it may have been dismissed. You can still easily enable MTD authorisation through your settings.
- On the QBA dashboard, click on Gear icon, then Company Settings.
- Select Advanced and go to the Making Tax Digital section.
- Click on HMRC connection, then Learn how to connect button.
- On the next page, complete the tasks required and tick the checkboxes. When you're done, click on Good to go.
- The Connect your firm to HMRC page shows the steps that you need to take on the HMRC page. Click on Get started when you are ready.
- On the next screen, select Go for it.
- On the message box, click on Sign in to HMRC if you have already set up your agent services account. If not, click on Set up your account to create an account.
- On the HMRC page, click on Continue to proceed with the authorisation process.
- Enter your Government Gateway User ID and password, and click on Sign in.
- Once your sign in details have been authenticated, you will be asked to grant authority. Click on Grant authority to complete the process to authorise QuickBooks to interact with HMRC.
- Once you have completed these steps to connect your firm to HMRC, you will find a confirmation message. Do not close your browser until you see this message, it may take a few minutes. When you are ready, you can click on Choose a client which takes you back to your client dashboard where you can select a client eligible for MTD.
Note: If you are prompted with an error message after granting authority, log out of QuickBooks, clear cache and cookies and attempt the steps above again.Make sure that you are using the new account service agent credentials that were provided in the UserID and password fields. If these fields are being auto populated, delete the credentials and manually re-enter them.
If you use Your Books in QuickBooks Online for Accountant to prepare and manage your firm's VAT returns you must authorise QuickBooks to interact with HMRC with Your Books. This is a separate process to authorising QuickBooks to interact with HMRC for your client files.
- Login to your QuickBooks for Accountant file.
- On the left menu, click on Your Books.
- Click on the Gear icon, followed by Company Settings.
- Click on Advanced on the left menu, expand Making Tax Digital for your firm's books.
- Select Learn how to connect and follow the onscreen instructions to complete the steps. Note: use your government gateway ID.
*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.