How to Provide Your Accountant with VAT Authorisation for Making Tax Digital (MTD)

Making Tax Digital (MTD) is an HMRC initiative that requires businesses to maintain digital VAT records and submit VAT returns using compatible software. To ensure your accountant can manage your VAT obligations under MTD, you must authorise them through HMRC’s system. Here’s a step-by-step guide to the process.

Step 1: Sign Up for MTD (If Not Already Registered)

Before authorising your accountant, you need to ensure your business is registered for MTD:

1. Check Eligibility:
   • Most VAT-registered businesses with taxable turnover above the VAT threshold (£90,000 as of 2024/25) must comply with MTD.
   • Voluntary registration is also available for businesses below the threshold.
2. Sign Up for MTD:
   • Visit the HMRC MTD Registration Page and follow the steps to sign up.
   • You’ll need your VAT number, business name, and Government Gateway login details.

Step 2: Provide Your Accountant with Authorisation

To allow your accountant to manage your VAT obligations, they will send you a bespoke authorisation link. This link will be valid for 30 days and requires the following information:

1. VAT Number:
   • Share your VAT registration number with your accountant.
2. VAT Registration Date:
   • Provide the date your business was registered for VAT.
3. Authorisation Link:
   • Your accountant will email you a bespoke link to complete the authorisation process. Follow the instructions in the link to grant access.

Once you’ve completed these steps, HMRC will notify your accountant when the authorisation is active.

Step 3: Maintain Accurate Records

Under MTD, businesses must keep digital records of VAT transactions. Here are some tips:

1. Ensure All Data is Digitised:
   • Maintain electronic records of sales, purchases, and VAT calculations.
2. Regularly Update Records:
   • Keep your accountant informed about any changes to ensure timely and accurate VAT submissions.
3. Use Bridging Software if Necessary:
   • If you’re using spreadsheets, ensure they’re connected to MTD-compliant software via bridging solutions.

Common Challenges and Solutions

1. Issue: Lost or Forgotten Government Gateway Credentials
   • Solution: Use HMRC’s password recovery service to reset your credentials.
2. Issue: Delays in Authorisation
   • Solution: Ensure all details are accurate and contact HMRC if delays persist.
3. Issue: Incompatible Software
   • Solution: Consult your accountant to identify and implement the right MTD-compliant tools.

How Helpbox UK Can Support You

At Helpbox UK, we make MTD compliance simple and stress-free. Our services include:

• MTD Registration Assistance:
  • Help with signing up for MTD and linking your VAT account.
• Agent Authorisation Management:
  • Guidance through the authorisation process to ensure your accountant has full access.
• Ongoing VAT Support:
  • Handling digital record-keeping and timely VAT return submissions.

Need help with MTD or VAT authorisation? Contact Helpbox UK for expert assistance and ensure your business stays compliant with HMRC requirements.