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.
Clients who are already linked to your existing Government Gateway IDs can be linked to your agent services account for MTD services.
- Visit this HMRC page to link your current clients to your agent services account.
- Click on the Sign In button.
- Enter your new Government Gateway User ID and password then click Sign in.
- On the agent services homepage click Allow this account to access existing client relationships.
- Click Start now, enter the old Government Gateway credentials that you previously used to submit VAT on behalf of your clients, then click Sign in.
- Enter your new agent services account number and your agent firm’s Self-Assessment, Partnership or Corporation Tax Unique Taxpayer Reference (UTR).
- Click Connect.
- Repeat for each Government Gateway ID you previously used to submit VAT on behalf of your clients.
Any clients you add to your old Government Gateway IDs from now on will also be added to your agent services account automatically.
Any new clients, or existing clients who’ve not yet signed up to use an HMRC online service, can be invited one by one from the Manage your clients area of your agent services account.
Sign up your clients for MTD -
Before you sign up a client for MTD, check the following:
- You have MTD compatible software for this client.
- Their latest VAT Return under the Government Gateway has been submitted.
- Your client’s data is up to date, accurate and complete.
HMRC advises that you add your clients to your Agent Services Account at least 72 hours before their VAT return is due, or 7 working days before if they pay by Direct Debit.
Note - During these steps your client will receive an email which they must verify to complete the signup process. Please remember to notify your client to do so. There may be a time limit before the invite expires so the sooner the better. If they do not see the email it would good to check the email address and or their spam folders.
- Click the sign up for the pilot link, enter your new Government Gateway User ID and password then click Sign in.
- Follow the on-screen prompts, entering the requested information about your client.
Once you confirm your client’s email address, they are sent a verification email. Your client must click the link in the email before you can continue.
- Once your client has verified their email address, click Continue.
- During the MTD pilot, you must also accept the terms and conditions on behalf of your client.
Once you sign a client up for MTD, you must continue to submit their VAT Returns under the new MTD system by signing in with the new credentials you have created. If you have not linked any clients for MTD services you may continue to use you old credentials for them.
*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.