I'm currently unable to submit VAT returns as I keep getting a message saying it can't communicate with HMRC and "needs action"

Hello there, gem! Let's toggle the settings so you can establish a fresh connection with HMRC. These steps will walk you through the process.

1. Click on the Gear icon in QBO and select Account and Settings.
2. Choose the Advanced tab.
3. Look for the Making Tax Digital section and toggle it off.
4. Re-enter the gateway information for HMRC.
5. Save the changes.

Then, you can re-enter the gateway information. Once you've completed these steps, you should be able to successfully submit your VAT returns in QuickBooks Online.

To fix the problem of submitting VAT returns in QuickBooks Online and communicate effectively with HMRC, we must also consider these things:

• Make sure that your VAT number in QuickBooks Online matches the information on HMRC's records. Any discrepancies can cause communication issues. 
• Use your MTD credentials provided by HMRC to establish the connection. 
• Your VAT accounting period in QuickBooks Online must align with the correct reporting period for HMRC. 
• If you have any open obligations with HMRC, such as outstanding taxes or other requirements it can lead to errors when submitting VAT return. Thus, make sure that you have no outstanding obligations before submitting your return.

You'll also want to monitor official communications from HMRC to stay informed about any known issues or maintenance activities that might affect the communication between QuickBooks Online and HMRC.

For additional information and more detailed instructions, refer to the article: Resolving MTD Issues and Errors in QuickBooks Online. This article provides comprehensive guidance on fixing issues related to Making Tax Digital (MTD) in QuickBooks Online.

If you have other concerns about VAT returns and anything related to QuickBooks, please let me know by commenting below. I'm here to help and provide the details you need. Take care and have a good one.