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M
MainlineSensors
October 10, 2023
Question

No longer VAT registered can I still use MTD tool

  • October 10, 2023
  • 1 reply
  • 0 views

We cancelled our VAT registration on 15th December 2022 and we haven't been able to link our QuickBooks acct with Making Tax Digital HMRC since. We are due to submit our next return on 3rd November and so it would be great to be able to use this tool as it saves so much time.

The error message we get when trying to link the account is:

 

We can't connect to HMRC

This could be because you recently:

 

  • signed up for a Making Tax Digital account with HMRC
  • submitted a VAT return to HMRC

None of this is relevant to us - we have disconnected and reconnected the accounts and the error is the same. There is no guidance on HMRC.

Please help! Thank you!

1 reply

G
GeorgiaC
October 10, 2023

Hi MainlineSensors, thanks for joining the Community

 

If you re-registered for VAT after cancelling, please check that the correct VAT registration number is showing in your VAT settings in QuickBooks (from Taxes > VAT > Edit VAT > Edit settings).

 

Please also double-check that you can access your online account with HMRC using the same VRN and Government Gateway user ID and password.

 

If any of these details are different to what you used to connect in QuickBooks, disconnect and reconnect MTD in your account settings. To disconnect: 

 

1. Select the gear icon and select Account and settings.
2. Select Advanced.
3. Select the pencil icon next to Making Tax Digital.
4. Select Learn how to Disconnect and follow the steps.

 

After this, log out and back into QuickBooks to turn on and authorise the MTD connection. 

M
MainlineSensorsAuthor
October 10, 2023

 Hi GeorgiaC,

Thank you for your reply. I don't think this is relevant to is because we haven't re-registered as VAT because we do not turn over the required amount. So we remain NOT VAT registered. Does this mean that MTD tool isn't open to us to use anymore? 

Thank you!

DivinaMercy_N
DivinaMercy_N
October 10, 2023

Hello there, MainlineSensors. I'm here to share details about using the MTD tool in QuickBooks Online (QBO).

 

In QBO, you're unable to use the MTD tool if you're not VAT registered. The tool is use for keeping digital records for VAT returns of VAT-registered businesses.

 

For reference, check out this article: Everything you need to know about Making Tax Digital (MTD) for VAT with QuickBooks Online. 

 

Additionally, I recommend reaching out to HRMC to verify if there are tools you can use for handling records for non VAT registered companies. 

 

In case you have other concerns or questions about managing your sales tax settings in QBO, feel free to post a reply below. I'm just around the corner to provide help. 

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