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October 12, 2024
Question

How to link QBs with HMRC for Making Tax Digital, is QBs ready for this?

  • October 12, 2024
  • 1 reply
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1 reply

October 12, 2024

Certainly, Debbie. QuickBooks Online (QBO) is equipped to connect with HMRC, ensuring seamless tracking of your taxes and effortless submission of your Value Added Tax (VAT) returns through Making Tax Digital (MTD). Allow me to guide you through this process.
 

Before proceeding, ensure that you've set up VAT in QBO and are using the correctly registered VAT number that matches your HMRC records. After that, let's authorize your QBO to interact with HMRC. Kindly follow the procedure below:
 

1. Sign into your QBO account.
2. Go to the Edit VAT dropdown, then choose Settings.
3. Scroll down until you see the Turn on MTD option, then toggle the button to activate it.
4. A prompt will appear asking if you've signed up for MTD, then check the box to confirm it.
5. Click the Got it tab.
6. You'll then be transferred to Set up MTD for VAT page. To start, choose Set up MTD.
7. Select Authorize Now to connect your QBO with HMRC.
8. A prompt will appear, then click Continue. Log into your MTD Government Gateway user ID and password. This information is found in the email received from HMRC.
9. Click on Continue, then Give Permission.
10. Once linked, select Continue and then Go to Taxes.

Consequently, a badge will appear on your Taxes dashboard indicating that MTD for VAT is enabled. For more information regarding this matter and reauthorization processes, refer to this article: Set up MTD for VAT in QuickBooks Online and connect to HMRC.
 

If you encounter any MTD errors, this material can assist you in rectifying these issues: Take action and fix MTD issues and errors in QuickBooks Online.
 

Let me know if you have further concerns about QBO's tax feature, Debbie. I'm right here to help 24/7. Have a great day ahead!