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Arranging Authorisation with HMRC for MTD for VAT

FAQs » Pre Sales FAQs » Arranging Authorisation with HMRC for MTD for VAT

HMRC requires businesses, agents, sole traders and individuals to go through a new authorisation process to comply with Making Tax Digital for VAT. The process is simple to complete and only needs to be completed once every 18 months – Agents go through this process only once whereas Companies/Sole Traders go through this process once per VAT number.

See below for

  • The authorisation for Agents, Businesses and Sole Traders
  • Create an agent account
  • Linking Clients to your account
  • HMRC service availability

 

Agent Authorisation with HMRC for MTD for VAT

Agents submitting MTD for VAT returns for their clients will need a new HMRC Agent Services Account for MTD. This supersedes the previous 64-8 authorisation.

This is a new authorisation process whereby you have one account per practice (so if you have any other VAT-related Government Gateway accounts these will be merged into one). With the new system when you file a return, you will be granted a secure token by HMRC which lasts 18 months. It ensures you don’t have to re-enter your Agent services account and credentials every time you submit during that timeframe.

Be aware your new clients will also need to log into their own Government Gateway accounts to authorise you as an agent to act on their behalf.

Business Authorisation with HMRC for MTD for VAT

HMRC has indicated that the procedure for a company or sole trader Authorisation will follow the following steps.

HMRC link – Use software to submit your VAT returns

For Limited Companies

  1. Sign into the gateway (if you do not have an account you must set one up)
  2. Confirm the VAT Number
  3. Indicate the type of business as a Limited Company
  4. You will then go through a confirmation process (this only requires completing once)
  5. Have your company number handy at this point
  6. Terms and condition for participation will now need to be accepted

 

For Sole Traders

  1. Sign into the Government Gateway (if you do not have an account you must set one up)
  2. Confirm your VAT Number
  3. Indicate your type of business (Sole trade or Other)
  4. You will then go through a confirmation process (this only requires completing once)
  5. Have your passport handy at this point (there will be other proofs of ID identifier options)
  6. You will have to agree to receive emails rather than letters and you will need to enter your email address at this point
  7. You will then receive an email and will need to confirm this
  8. Terms and conditions will now need to be accepted

Useful HMRC links

How to create or sign-in to an Agent Services Account

Linking clients to your Agent Services Account

Check on the availability and anything affecting this service at HMRC

Want to find out more?

If you have any further questions relating to BTCHub, contact the sales team at e: sales@btcsoftware.co.uk or t: 0345 241 5030.

You can also find the latest announcements about MTD for VAT on our blog or by following us on Twitter, LinkedIn or Facebook.

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