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VT Cash Book

Navigation: Making Tax Digital (MTD) for VAT

Setting up MTD: businesses

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This section is for businesses setting up their own business for MTD. If you are an agent using an agent services account, please refer to Setting up MTD: agents. Please note that VT Software cannot provide support on using HMRC's website and you should contact HMRC if necessary.

1.Sign up your business to use the MTD for VAT service

Please note: if you have previously submitted VAT returns on HMRC's website using their VAT online service, this is not the same as MTD for VAT and you still need to sign up for the MTD for VAT service.

Go to the Sign up for MTD for VAT page on HMRC's web site and follow the on-screen instructions.

You will be asked a few questions and then requested to enter a Government Gateway user ID and password. If you already have a government gateway user ID for your business, enter the details here, otherwise, select Create sign in details to create a government gateway user ID:

GG sign in

 Sign in with your business's government gateway ID or create one by selecting Create sign in details

After you have signed up you should receive a confirmation email from noreply@tax.service.gov.uk within 3 days. You cannot submit a return until you receive this email, therefore you should contact HMRC if you have not received this within 3 days.

2.Check you are signed up for MTD

You can check you are signed up for MTD by signing into your HMRC business tax account.

This will list VAT as one of the services you are signed up to.

However it will not be obvious whether this is the older VAT online service, or MTD for VAT. This can mislead users into thinking they are signed up for MTD for VAT when in fact they are signed up for the older VAT online service.

If you are signed up for MTD for VAT, you should be able to select Manage your VAT Account and see 'Opt out of Making Tax Digital for VAT'. If you do not see this, it is likely that you are signed up for the older VAT online service.

Manage VAT

OptoutVAT

Furthermore, if you have not received a confirmation email from HMRC stating that you are signed up for MTD for VAT, this likely means you are not signed up.

3.Grant authority

Before you can use the MTD features in VT you need to grant authority for the software to interact with HMRC on your behalf:

In VT Transaction+: Select MTD And Tax Data>Grant Authority*. Do not tick the box marked 'I'm using my Agent Services Account for this client'.

Select the Grant Authority to VT Transaction+ button in the top left of the dialog box.

This will open the following page on HMRC's website in your normal web browser (If you experience any technical issue at this point, it may be due to your web browser, therefore please refer to Grant authority connection issues.). On this page, select Continue (ignore the 'If you're an agent' message):

Authority

You will then need to enter the same government gateway user ID you used to sign up for MTD for VAT in step 1.

Complete the instructions that follow. At the end of the process you will be asked to copy and paste an authorisation code into VT.

Copy the code and then close your web browser.

Go back into VT and a dialog box will pop up for you to paste the code into.

If you don't see the dialog box to paste the code into, go back into the Grant Authority dialog by selecting MTD & Tax Data>Grant Authority and click on the option that says 'I have just granted authority and want to enter the authorisation code'.

 

*To grant authority in VT Cash Book and VT MTD For Excel:

VT Cash Book+: Select Display>VAT Returns and select Grant authority; or

VT MTD For Excel: Select VT MTD>Grant Authority from the menu on the Add-ins tab on the Excel ribbon

Submitting a VAT return

Provided the steps above have been carried out, you can then submit a VAT return in the software by generating the return and selecting Submit VAT return to HMRC as described here.

If you cannot submit a VAT return

MTD mismatch error message

This means that you have carried out one or more of the steps above incorrectly, or you have entered the VAT registration number incorrectly. You should check the following:

The VAT registration number entered in the software (or spreadsheet if you are using VT MTD For Excel) is correct. In VT Transaction+ and VT Cash Book go to Set up>VAT.

You are definitely signed up for MTD for VAT (not to be confused with the older HMRC VAT online service) - to check this please follow the steps in step 2. above.

You have granted authority with the same government gateway user ID you used to sign up for MTD for VAT in step 1 above. If necessary grant authority again with the correct ID by re-performing step 3. above.

VAT return is not outstanding error message

This message appears when you try to submit a VAT return that is not shown as outstanding in the Display HMRC's List of Your VAT returns window.

The information on this list comes directly from HMRC's databases and is not generated by software. Therefore if a VAT return is not shown as outstanding when it is, this indicates an error in HMRC's databases and you need to contact HMRC. You can also see the list of outstanding returns by signing into your HMRC business tax account and selecting the VAT section as described in step 2. above.

VAT return is already submitted error message

This message appears when you try to submit a VAT return that is shown as submitted in the Display HMRC's List of Your VAT returns window.

The information on this list comes directly from HMRC's databases and is not generated by software. Therefore if a VAT return is shown as submitted when it has not been, this indicates an error in HMRC's databases and you need to contact HMRC. You can also see the list of submitted returns by signing into your HMRC business tax account and selecting the VAT section as described in step 2. above.

Server errors

If you get an 'Internal server error' message, this usually means:

the sign-up process for MTD is incomplete - it can take up to 3 days, therefore you should contact HMRC if you have not received a confirmation email from them within this time.

If you get a 'Server error' message, this usually means:

there is an issue with HMRC's servers - in which case try again a bit later.

Contacting HMRC

If you need to contact HMRC, their VAT general enquiries line is 0300 200 3700. We have received feedback from some customers that they have been unable to get through to speak to someone, however you can get around this by doing the following:

Initially, you will get through to an automated answering service and asked the reason for your call; say 'Making Tax Digital for VAT'

Answer the questions that follow and when you are given the following list of options:

1.Signing up for the service

2.Help with a return

3.Software issues

4.Something else

 do not say any of the first 3, but say 'something else' and you will be put in a queue to speak to a HMRC adviser.

How authorisation codes are stored in the software

The authorisation code issued to VT for a business is stored in the VT Transaction+ file, VT Cash Book file or Excel workbook as appropriate. Authority is valid on any PC used to open the same VT file or workbook. You can cancel the authority at any time by clicking on the Forget authority caption in the Grant Authority dialog.

Therefore, if you move your software to another PC, if you have transferred the VT Transaction+ or VT Cash Book files, or Excel workbooks to your other PC, you should not need to grant authority again until the 18 month period has expired.