Please enable JavaScript to view this site.

VT Transaction+

Navigation: Making Tax Digital (MTD) for VAT

Setting up MTD: agents

Scroll Prev Top Next More

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

1.Create an agent services account

Before you can use MTD on behalf of clients you must create an agent services account with HMRC. Please note, this is a separate account to the older HMRC online services for agents account.

Go to the create an agent services account page on HMRC's web site and follow the on-screen instructions.

You will be asked to enter a Government Gateway user ID and password. If you already have a government gateway user ID for the older HMRC online services for agents account, enter the details here, otherwise, select Create sign in details to create a government gateway user ID:

GG sign in

HMRC will issue you with a separate government gateway user ID and password for the new agent services account.

2.Link clients to your agent services account

After you have created an agent services account, you need to link your clients to it.

You can do this by going to the Copy across clients or authorise new ones for your agent services account page and signing in with the government gateway ID for your agent services account.

3.Sign up clients for MTD

In addition to linking a client to your agent services account, the client also needs to be signed up to MTD.

They can do this themselves by following the same steps in step 1. of Setting up MTD: businesses, or you can do this on their behalf by going to the Sign up your client for MTD for VAT page on HMRC's website.

After signing up, the client (or you, if you have signed them up on their behalf) should receive a confirmation email from noreply@tax.service.gov.uk within 3 days. You cannot submit a VAT return until this email has been received, therefore you should contact HMRC if this has not been received this within 3 days.

4.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*. 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:

Authority

You will then need to enter your government gateway user ID for your agent services account that you were issued with in step 1 above.

Make sure you do not enter the government gateway ID for your HMRC online services for agents account or any other government gateway ID, otherwise you will not be able to submit any VAT returns. Mistaking the older HMRC online services for agents account, for the agent services account and granting authority with the wrong user ID is a common reason for VAT returns not being able to be submitted.

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.

The client is definitely signed up for MTD for VAT (not to be confused with the older HMRC VAT online service which can be mistaken for MTD for VAT) - to check this please follow the same steps in step 2. of Setting up MTD: businesses.

The client is linked to your agent services account - you can check this by signing in to your agent services account.

You have granted authority with the government gateway user ID for your agent services account that you were issued with in step 1 above. If necessary grant authority again with the correct ID by re-performing step 4. 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. The outstanding returns can also be seen on the client's HMRC business tax account in the VAT section.

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. The submitted returns can also be seen on the client's HMRC business tax account in the VAT section.

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

If you tick the ‘I’m using my Agent Services Account for this client’ box in the Grant Authority dialog, the authorisation code is stored on the PC you are using. The same authorisation code can be used by VT Transaction+, VT Cash Book and VT MTD For Excel for any business that is linked to your agent services account. However, you need to grant authority from each PC you are using. VT supports and can store the codes for any number of agents.

Therefore if you move your software to another PC, you will need to grant authority again.