This guide shows you how to connect Sage Accounting to HMRC to submit your VAT Returns using MTD. 

Skip to:

• HMRC User ID?
• Businesses exempt from MTD
• Check your VAT settings
• Authenticate your software with HMRC
• Fix authentication errors

HMRC User ID?

Your HMRC User ID is given to you by HMRC when you sign up for the government online services, it is the Government IT system which allows you to sign up for VAT for your business if you are unsure you have an HMRC User ID, have a look at use a Government Gateway User ID link which will give you steps on how to check if you have one already or need to sign up.

Businesses exempt from MTD

 CAUTION: HMRC will decide if you meet the exemption criteria. To avoid potential penalties, you must check with HMRC directly and don’t assume you meet the criteria.

If HMRC have confirmed you're exempt, you don't need to authenticate your software with HMRC. 

Check your VAT settings

Make sure your VAT scheme and VAT registration number are correct. To do this:

1. Go to More, then Business Settings.
2. Select Accounting Dates & VAT.
3. Check that your VAT Scheme is correct.
    CAUTION: If the wrong VAT Scheme shows, follow the steps in this help guide before going any further. >
4. Make sure you enter your VAT number correctly. 
5. Once you're happy with the information, select Save.

Authenticate your software with HMRC

You must reauthorise this connection every 18 months. Read how to reauthorise your connection >

1. Go to More, then Business Settings. 
2. Select Accounting Dates & VAT.
3. From the Making Tax Digital section, select Authenticate.
4. Select I am signed up with HMRC for Making Tax Digital then select Authenticate.
5. Select Continue when prompted and sign in with your Government Gateway credentials.
6. When prompted, select Grant authority. You will then return to Sage Accounting. 
7. If you get an error message, take a look at the next section for help. 

Fix authentication errors

While attempting to authenticate with HMRC or submit a VAT return, if you encounter the following message: 

Check the following:

1. Make sure your VAT number is correct within your settings.
2. Go to the HMRC website and sign in to your Government Gateway account that relates to your VAT account. 
3. If you can sign in successfully, make sure you are using the same details to authenticate in Sage Accounting. 
4. If you can't sign in to Government Gateway, contact HMRC for further support. 
5. If everything is correct, and you can sign in, try again to authenticate.
6. If you are still receiving the error, please contact HMRC (opens in new tab) for further support. 

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• Create and submit a VAT Return
• Recording VAT payments and refunds
• Resubmit a manual VAT return with Making Tax Digital (MTD)
• Reauthorise with HMRC