Set up for Making Tax Digital for VAT

To connect Sage Accounting to HMRC to submit your VAT Returns using MTD, you need to authenticate your software with HMRC.

Before you start

• Make sure you have a Government Gateway user ID
• Check the VAT scheme settings in Sage Accounting are correct

 HMRC will decide if you meet the exemption criteria. To avoid potential penalties, check eligibility on their website for general VAT enquiries.

1. Go to Settings, then Business settings. 
2. Select Accounting dates and VAT.
3. From the Making Tax Digital section, select Authenticate.
4. Select I have signed up to MTD and have received confirmation from HMRC then select Authenticate.
5. Select Continue when prompted and sign in with your Government Gateway credentials.
6. When prompted, select Grant authority. You'll then return to Sage Accounting. 

If you’re getting an error preventing you authenticating, refer to our guide on the unable to authenticate with HMRC error.

The connection lasts for 18 months before you have to reauthorise Sage Accounting with HMRC.

• Create your VAT Return and submit it to HMRC
• Recording VAT payments and refunds
• Resubmit a rejected VAT Return with Making Tax Digital (MTD)
• Reauthorising with HMRC for Making Tax Digital (MTD)