To activate the Making Tax Digital (MTD) for VAT submissions functionality in Sage
Once you register with HMRC for Making Tax Digital (MTD) for VAT, you must switch on the MTD functionality within Sage Business Cloud Accounting Start.
To get the relevant help for switching on MTD functionality please confirm that you have Sage Business Cloud Accounting Start.
If you have Sage Business Cloud you will log in through a web browser.
Before you try to activate the MTD for VAT submissions functionality in Sage, please check that:
- You’ve successfully registered with HMRC for the MTD.
- All non-MTD VAT returns have been submitted. You can’t switch to MTD if you have a draft, waiting or failed VAT return.
- You have the correct VAT number entered in More > Settings > Accounting Dates & VAT.
Switch on MTD functionality
- 1. Go to More, then click Settings. In the Financial Settings section, click Accounting Dates & VAT.
- 2. Scroll down to the Making Tax Digital section, then click Authenticate.
- 3. Select the I am signed up with HMRC for Making Tax Digital check box, then click Authenticate.
- 4. The GOV.UK website opens automatically. To allow permission for Sage to interact with HMRC on your behalf, click Continue when prompted.
- 5. Sign in with your Government Gateway credentials.
If you’re a VAT agent, you must enter your new agent services account ID and password.
- 6. When prompted, click Grant authority.
Error: We were unable to authenticate with HMRC
If the authentication process fails, you may receive this error message.
Since you don’t have Sage Business Cloud, please visit the MTD support page to find the relevant instructions for your product.