How to send VAT Returns to HMRC under Making Tax Digital (MTD)

Before you can submit VAT Returns under the new Making Tax Digital (MTD) service, you need an Agent Services Account.  This will allow you to access new and future HMRC online services and will mean that TaxCalc can retrieve and submit VAT Return data to HMRC. 

If you already have an Agent Services Account and you have already linked your VAT government gateway credentials to this account, please click here to find out how to add MTD VAT Services to that account.  If you do not have an Agent Services Account, the following information will explain the process.

How to set up an Agent Services Account

To setup an Agent Services Account, you need to log into the HMRC agent services account using an existing government gateway ID and password (this could be the one that is currently used to access other services such as self-assessment).  You will then need to enter your agent Self-Assessment or Corporation Tax Unique Taxpayer Reference (UTR) and the postcode associated with that reference.

Once these details have been entered successfully, you will be given a new government gateway ID and password along with your new Agent Reference Number.  It is these credentials you will need to use to access the new Agent Services Account.  The Agent Reference Number is the number that all existing and new clients are assigned.

Please note: These new credentials do not replace the existing credentials used to access existing agent services. Your old credentials should still be used to access existing agent services.

How to allow your new account to use your existing client relationships

You will need to log into your Agent Services Account using your new government gateway ID and password. You should then be provided with a link ‘Allow this account to access existing client relationships’. 

At this point, you will need to enter the old government gateway credentials that you have been using.  You will then need to re-enter your new Agent Services Account number and Agent details and the accounts should be connected.

If you have multiple government gateway IDs and passwords, you may need to do this for each set of credentials.  There should be no need to reauthorise clients where you are already authorised to act on their behalf for online services.

If you add new clients to your old government gateway ID, these should be automatically added to your Agent Services Account; they do not need to be connected manually.

How to authorise new clients

In Agent Services Account, there is an option to Manage Your Clients.  This is a new client authorisation (like a 64-8). This replaces the Online Agent Authorisation for MTD VAT and will allow your client to give an immediate digital authorisation to HMRC to allow you to view and submit data for them.

How to sign up your existing clients to the MTD VAT service

To sign up existing clients to the MTD VAT service, you need to enter your new credentials and your client’s details. For Pilot services, you will have to agree to Terms of Participation on behalf of the client.  This is not necessary for Live services

How to link our software to HMRC’s MTD VAT Service

You will need to enter your new government gateway ID, password and Agent Services Account number in TaxCalc to be able to submit and retrieve data for the MTD VAT service.  This is done via the Admin Centre / Applications option. 

The first time you go to retrieve data for a client, you will be asked to authorise TaxCalc to use the Government Gateway MTD services.

Please note that this information is correct at the time of writing and is subject to change.