Hello Community Users, We just wanted to pop into this thread and add some tips and things to check for users who are seeing the take action message. Any questions just ask.
1. Make sure you are signed up for MTD for VAT
Starting from April 2022, all VAT-registered businesses must keep digital records and use MTD-compliant software to make tax submissions electronically. If you haven't already, sign up for MTD.
2. Check the email confirmation from HMRC
After you sign up for MTD, HMRC will confirm by email if you can start submitting VAT returns. This usually arrives within 24 to 72 hours and will contain your new MTD credentials which you'll need to connect and authorise QuickBooks.
Don't see an email? Check your spam/junk folder, or contact HMRC if you still haven't received it.
3. Check the VAT number in QuickBooks matches HMRC's records
The VAT registration number in QuickBooks must be the same as the one you used when you signed up for MTD. To check this:
- In QuickBooks, select Taxes.
- Select VAT.
- Select Edit VAT.
- Select Edit Settings.
- Check the 9-digit VAT registration number.
- Remember to Save any changes.
Note: If you have recently signed up to MTD, it can take up to 24 hours for HMRC’s systems to update.
4. Make sure you are using the correct Government Gateway credentials
The HMRC authorisation portal in QuickBooks is not MTD-specific and will accept any Government Gateway credentials. It's important to check that you are using the correct credentials provided to you by HMRC.
Check your inbox or spam folder an email sent to you by one of the following:
- Government Gateway
- no-reply@access.service.gov.uk
- noreply@tax.services.gov.uk
If you still can’t find the email, reach out to HMRC.
For accountants and bookkeepers, make sure you sign up for a new agent services account to use HMRC's MTD services – this is different to your regular HMRC online services for agents account.
5. Switch on Making Tax Digital in QuickBooks
Before you can submit a VAT return via MTD, you need to switch on the MTD for VAT feature in QuickBooks.
6. Connect and authorise QuickBooks to interact with HMRC
After you switch on the MTD feature in QuickBooks, the next step is to connect QuickBooks to interact with HMRC – a process known as 'authorising'.
Note: You'll need to re-authorise your MTD connection every 18 months, in-line with HMRC's guidelines. Don't worry, we'll let you know when it's time to re-authorise the connection.
7. Update your VAT accounting period
If you see this message it means the VAT periods in QuickBooks do not match the periods that HMRC have for this VAT registration number. Some other potential causes:
- There is an open period in QuickBooks or with HMRC that is marked as filed.
- There's a VAT period that is rejected in QuickBooks and is not filed with HMRC.
To fix this, go to Taxes and select Go for it and follow the instructions.
Note: Do not select Resubmit return for a rejected VAT filing as QuickBooks will try to resubmit the return using the same method as the original filing attempt (or using the old filing method instead of MTD).
8. Check you have permission to make a VAT submission
If MTD connection was set up by an accountant or a member of your team and you did not enter your own details, reach out to the person who set up the connection.
If you're an accountant/bookkeeper, make sure you link your clients to your new services agent account so that you can submit on their behalf.
9. Check if you have any open obligations with HMRC
You may not have enabled yourself to file for this company or you don't have any open obligations with HMRC.
