Making Tax Digital (MTD) Drop-in Session | Post Your Question!

I have QuickBooks Premier Desktop 2016, is this compatible with MTD? If not is there a desktop version I can upgrade to? I need a desktop version as I'm out of the office most of the day visiting customers in remote places with very poor or no internet connection so an on-line version won't work for me. thanks. John

Hello Johnwhetstone, 

Thanks for posting your question on this thread, so your right 2016 is not compatible with MTD, you would have to upgrade to 2021 desktop version however Desktop is discontinuing and you will no long be able to use it at all or have access to it, so you would need to either move have to move to online or to a different soft ware completely. Do you have a subscription for your 2016 desktop currently? 

Hello Ashleigh

Thank you for your reply, unfortunately my subscription lapsed. Are there any resellers that would have a 2021 desktop version?

Hi Johnwhetstone, thanks for coming back to us with that information, so you will need to ring this number 0808 168 9533 for our sales team there will be an option for desktop sales and they will be able to help you with this. 

Can anyone help me with the below error message?

I used to click a button in the same place as this one, and it would let me submit my own VAT returns. Now, I can't do it and had to ask my Accountant to submit it for me.

When I click the "Take Action" button, I'm taken to the next screenshot and I can't get make any sense of it. I've underlined an "Error Code" at the bottom "CLIENT_OR_AGENT_NOT_AUTHORISED"

Any ideas?

Thank you

Welcome to the Community, @I3.

I can provide some idea about the error and how to fix it. This way, you can send your VAT returns successfully to HMRC on time and keep your account up to date.

The error We can't connect to HMRC right now would usually show up if: 

• The user ID and password are incorrect. 
• Incorrect VAT registration number entered in the VAT settings
• The current VAT return period has not ended yet. 

To fix this, let's first enable the MTD. Then, you'll have to authorise QuickBooks first to interact with HMRC. Here's how:  

1. Proceed to the Gear icon, then select Account and Settings.
2. Choose Advanced on the left menu in the Accounts and Settings page, then click the Making Tax Digital header to expand the section. 
3. Select on Learn how to connect, then click on Let's go on the Get started with digital tax page. 

Once done, follow the steps below to complete the process:

1. After clicking on Let's go, you'll be directed to the HMRC page as shown below. Select Continue to sign in.
2. Enter your HMRC credentials to sign in.
3. Choose on Grant authority to continue. Then the authorisation process will begin. 
4. You'll receive a 'You're connected to HMRC' message as below.
5. Choose Continue when the process has been completed, click on Take a look. 

For additional info, please refer to this help article: Authorise QuickBooks to interact with HMRC - MTD for small businesses.  

Whether you want to know more about MTD or have a burning question about the new changes and how it affects your business, this guide has everything you need to know.

Keep in touch if you have further questions about submitting VAT returns. I'll be happy to lend a helping hand. Have a pleasant day!

Good day, as of 1 April 2022 the VAT records will have to be kept digitally. Is this a service offered by QB ? I have QB already in use since some time for VAT returns. Thanks

Hello VBP1, thanks for posting on this thread, So in quickbooks we have making tax digital . if you have a look here to shows you how to set it up in your account. 

Thanks Rubielyn...

I think my issue may be slightly different as I have an accountant who is setup as an agent... I believe I submit the returns through their agent account somehow... I have been submitting this way for about 18 months, and I'm sure a notification popped up to say that an authorisation had expired (after 18 months).

Is there a different setup or solution for this one?

Thank you for your help

Ian

Hello I3, if you have a look at this link it shows you the steps you need to do as you have been submitting for 18 months now so you need to redo the connection. 

Hi, I've submitted a VAT return correctly via quickbooks/tax made digitial.  Now on the VAT page there's a message saying "We can't connect to HMRC right now".  I've reauthorised the connection but it still doesn't connect.  My next return isn't due for a few months - looking at the messages above am i right to think this message will remain until closer to the time when the next return is due?

Thanks

Hello Dave, Yes that is correct, so it will be blocked until it nears the next submission date. So that message will show until near a the next submission for you. 

Great thanks for confirming that, the message is a bit confusing, was a bit worried because it says it cannot connect but good to know. Thanks

Hi, My business allows me to sell products at zero rate vat and I am VAT registered. This allows me to reclaim VAT on all my purchases made for the company. I am about to make my first MTD (and VAT) submission but need to reclaim vat from purchases made in the past. I understand that I go into the prepare VAT and make an adjustment to box 4 but which account do I choose from the drop down. Other q&a answers say pick an income account but these are all purchases which are made against items logged in my equipment chart of accounts. Should I select my equipment chart of accounts or should I create a new account purely to hold this adjustment value?

Also do I need to change the value in box 7 for total purchase to include the past purchases as well or leave it as quickbooks has calculated?

thanks

Hello BucksHoney, 

Welcome to the Community page, 

This is the VAT adjustment article for you to look at here as you are reclaiming VAT that is reducing the VAT due. You should check with HMRC if box 7 is required to be reported as well. 

Hi,

I have just recently moved from Sage to QuickBooks. I have tried to set up our VAT and it asked me to file for a previous period - 1/6/21-31/8/21. I filed it but it has already been submitted through our previous software. 

QuickBooks is now asking to submit the next VAT period 1/9/2021-30/11/21 but says it can't connect to HMRC. It has been like this for nearly a week now. 

The first period I wanted to submit was 1/3/22-31/5/22. What do I need to do now?

Thanks

Paul

Hello Paul, thanks for posting on this thread, so if these returns have already been submitted to hmrc in a previous software, if you turn off mtd in the taxes section and the the main account and settings section and then go back to the return and click on the return and mark the period as mark as filed, if you do this to all the returns previously submitted until you reach the return you need. once at the return you need if you then turn mtd back on so in the main account and settings section and in the taxes section as well, so you can then submit the return to hmrc when you need to. 

Hi Ashleigh,

Thanks for getting back to me. 

I have turned it off in the main accounts settings but can't see how to do it in the taxes section? If I click on the return I still can't see how to file it?

Thanks

Paul

Hi Paul so in the taxes section if you click taxes> vat> edit vat> edit settings> you will see a toggle you will need to turn off to turn mtd off > save. then just repeat the steps to turn it back on again once you have marked the periods you need to. Any Q's let us . 

Hi Ashleigh,

That has worked. Thanks for that.

How do I manually adjust the VAT return? We have entered the trial balances from 1/4/22 but there is an invoice from March on our previous software that isn't showing that needs to be included in the VAT return.

Thanks

Paul

Hi Paul, that's great to hear it has all worked for you, no problem at all. In regards to that transaction it could be a case of clicking on the prepare return in the taxes, vat section and adjusting the boxes you need to show this transaction. so when the boxes show up on the prepare return you will see the work adjust next to the boxes, if you click on the ones you need and then fill in the information it askes for> click on save and it will then amend the information that box once all done then when your ready to submit then you can submit it to HMRC. 

Hi Ashleigh,

Perfect. All sorted. Thanks for your help.

Paul

You're always welcome, @paulm99.
 

I'm happy to hear that we're able to help you out with your concern. Feel free to visit us again should you need help with anything else.

Keep safe always!

Hi,I have some problems getting MTD working with Quickbooks online, although it shows in the VAT screen that MTD is enabled. I am stuck with the We can't connect to HMRC error. I've followed all the trouble shooting solutions in the Help that I can see and I have a VAT return due (to 31st May 2022), but all that is showing is old return info. I only took over doing these accounts in the Autumn 2021 and submitted VAT returns manually via the HMRC web site until now, not using this VAT screen at all. What can I do to resolve the problem?