Small businesses that are VAT registered with a taxable turnover above £85,000 must keep digital VAT records and use software compatible with Making Tax Digital, like QuickBooks, to submit their VAT Returns.
QuickBooks currently support standard VAT submissions.
If you client is eligible for MTD, you need to complete the 3 steps below to complete their set up on HMRC and QuickBooks.
Step 1: Link clients to your agent services account (ASA)
All clients who are linked to your existing Government Gateway IDs need to be linked to your new ASA for MTD services. This is done on the HMRC website.
- Go to this HMRC page.
- Select Sign in.
- Enter your new Government Gateway User ID and password on the sign in page, 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 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 this process for any other 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 Manage your clients of your agent services account.
Step 2: Sign up your clients for MTD for VAT
Now that you have linked your clients to your new ASA, you are required to sign up eligible clients for MTD. Before you do that, complete the checks below:
- Their latest VAT return under the government gateway has been submitted.
- Their data is up to date, accurate and complete.
- If your client pays HMRC via direct debit, sign up at least 2 weeks before the next VAT return is due.
Now, follow the steps below to sign up your eligible clients.
- Go to this HMRC page.
- Click on Sign up now, using your new Government Gateway User ID and password.
- The the on-screen prompts, entering the requested information about your client.
You'll receive an email within 72 hours to confirm that you can submit your clients' returns digitally.
Once you sign up a client for MTD, you must continue to submit their VAT returns using your new Government Gateway User ID.
Step 3: Set up your MTD client in QuickBooks
- Select your client from your client list.
- Click on Taxes on the left menu, and select the Set up now button.
- On the Get started with Making Tax Digital page, select the My client is eligible for the HMRC public beta programme checkbox, then Continue.
The set up process is now complete. You can now view return and submit your eligible clients' returns to HMRC through MTD.
*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.