Does your MTD for VAT software need to be reauthorised?
2 February 2021: ICAEW’s Tax Faculty advises businesses and agents that if they encounter a problem filing an MTD for VAT return it may be that the MTD software needs to be reauthorised.
One of the steps involved in signing up to Making Tax Digital (MTD) for VAT (see ICAEW's guidance for businesses and agents) is to authorise the software. This step effectively sets up the connection between the software and HMRC’s systems.
Reauthorisation is required periodically. HMRC requires that software be reauthorised at least once every 18 months although some software developers have designed their systems to require more frequent authorisation. The process can be cumbersome as it involves two-step verification.
The Tax Faculty has been receiving more reports of submission failures resulting from the need to reauthorise software in recent weeks – probably owing to the time that has elapsed since the start of MTD for VAT.
According to member feedback, the error message received is not very clear.
Any queries on how to reauthorise software should be directed to the software provider.