Thank you for bringing this to our attention, darshana1.
This error is due to the following reasons:
- QuickBooks is no longer authorized to connect to HMRC
- Using an incorrect user ID and password
- Incorrect VAT registration number entered in the VAT settings
- The current VAT return period has not ended yet.
- HMRC has not authorized your client or agent services account
- The VAT registration number in the VAT Centre doesn’t match HMRC’s records.
First, access your HMRC online account to review your open obligations, including any taxes due. Please note that HMRC will not process your return until all obligations are completed. Ensure that everything is up to date and all requirements are met before submitting your return.
Let's then re-authorise QuickBooks to connect with HMRC. Here's how:
- Go to Taxes in the left menu.
- Select Set up MTD
- Click Authorise Now, then select Continue.
- Log in to HMRC in the pop-up window using your Government Gateway credentials:
- Enter your HMRC Government Gateway user ID and password.
- Select "Give permission" to allow QuickBooks to connect with HMRC.
- Once authorized, click Continue, then select Go to Taxes.
- When completed, you’ll see an MTD badge on your Taxes dashboard, confirming that MTD for VAT is enabled, and you can now submit a VAT return.
For more troubleshooting options, please visit this article: Fix MTD issues and errors in QuickBooks Online.
If you have other questions or need further assistance, please leave us a response.