Businesses are required to authorise MTD software. This process is completed once the business has signed up for MTD VAT. It is therefore the final process which links the software to HMRC.
IMPORTANT: You must only start this process after:
- you have completed the MTD for VAT Registration guide
- and received the confirmation email from HMRC
How to authorise MTD software
Within your bookkeeping software you need to enter your Government Gateway User ID and password.
You may also need to provide additional details such as an access code (The two step verification process which is text or emailed).
How to, within SAGE
Follow these instructions to authorise your MTD software credentials within SAGE 50c.
- Select Settings
- Company Preferences (enter the password)
- Select the VAT tab
- Ensure all of the information on the screen is completed (Except EC Sales if not applicable)
- The eSubmission credentials is the business Government Gateway User ID
- The eSubmission contact details should be the same as used when completing the MTD registration with HMRC
- Finally ensure the enable MTD for VAT submissions box is ticked
When you come to submit the VAT return, it may ask for the Gateway ID, password and access code again. Therefore ensure that you have the mobile phone or email address available so that you can complete the 2 factor verification.
How to, within Quickbooks Online
Follow these instructions to authorise your MTD software credentials within Quickbooks Online.
- Select Taxes
- On the top right of the VAT screen it will say ‘Get ahead with MTD – Set up now’
- A series of questions will be asked for you to complete
- After completion the top left of the VAT screen, will have an MTD enabled logo
When you come to submit the VAT return, it may ask for the Gateway ID, password and access code.
Each software is slightly different. As a result, you may need to contact your own software provider.
The basic task is that somewhere within the software will be the ability to type in your Government Gateway login and password. You may also need to enter other information such as contact details.
Typically this will either be in a settings section or a VAT section of your software.
Re-authorise the software
All software will require re-authorisation at some point. This will be at a minimum every 18 months, however it may be more frequent.
We expect this to occur when software is upgraded to latest versions (usually annually) or if HMRC amends its systems.
Re-authorisation would just consist of re-entering the Government user ID, password and confirming an access code.
Which software is compatible?
HMRC publish a list of software which has been shown to be compatible with MTD for VAT.
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