Making tax digital

Making Tax Digital – How to sign up!

  • We recommend you do this before your next VAT return is due by at least one month in case you hit any problems!

What you will need

  • Details to access your HMRC VAT login (if you have one)
  • Your UTR number for the business
  • Access to your email account registered with HMRC

Instructions

  • Firstly google “Sign up for Making Tax Digital.”
  • Click on the link.
  • Then look for sign up on the page and click on “sign up your own business”.
  • Click the option “Yes, I have accounting software” and then press continue.
  • Click the option “Yes, my software submits through Making Tax Digital for VAT” and then press continue. (Both Xero and Quickbooks do this!).
  • Sign into your HMRC portal using your login for VAT.

If you have not previously had an account for VAT you will need to create one.

Once you have entered your details, press sign in.

  • Next confirm your details.
  • You may need your email to obtain a login code if the email you have registered with HMRC is old.                                                                                                                                                                                           
  • Click “yes” or “no” depending on whether you do have more than on VAT registered business. Then press continue.
  • Then click which type of business you own- most of our clients are sole trader or limited company. Then press continue.
  • Now check your UTR and see if it matches what HMRC have. If it matches press yes. If not enter the correct UTR.
  • Next check that the email HMRC have is correct. If it is press yes. If not enter a new email.
  • Click Finish. Once you have done this you should receive a confirmation email within the next 72 hours.

Linking to Quickbooks

  • Firstly login to Quickbooks
  • Go to the taxes section
  • Click the “lets go” in the top right
  • Then click Yes
  • Then click turn on MTD
  • Click continue
  • Now sign into HMRC VAT account
  • Click grant authority to Quickbooks
  • Wait for Quickbooks to process this – can take a minute
  • Then click take a look
  • There should now be a tick in the top left hand corner

Linking to Xero

  • First login
  • Click on accounting and go to reports
  • Then under Tax click VAT return
  • Click continue after signing up
  • Now click connect to HMRC
  • Then click continue
  • Sign into your HMRC VAT account
  • Grant authority
  • Once this has happened you should be able to see your new VAT overview in Xero