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Setting up for Making Tax Digital (MTD) for VAT

In this article we will explain how to sign up for Making Tax Digital, connect your FreeAgent account to HMRC and then the process of filing your VAT return.

From 1st April 2019, VAT-registered businesses with a taxable turnover above the VAT threshold are required to use the Making Tax Digital service to keep records digitally. As a FreeAgent user, you can submit those VAT returns directly to HMRC!

1 Sign up for MTD for VAT with HMRC

First things first, if you haven’t already, head to HMRC’s MTD for VAT sign up page and sign up your business.

Once you’ve finished signing up, you’ll see the following screen:

KB-GS-Ess-MFV-01-Final.png

Please note, not all businesses are currently eligible to join the pilot so HMRC will perform some checks before sending you a confirmation email. This can take up to 24 hrs and once you receive a confirmation, you are ready to connect FreeAgent with HMRC.

If you’re not currently eligible, you will need to continue filing VAT returns as you have done, through FreeAgent’s existing VAT filing system or through HMRC’s website.

2 Connect FreeAgent to HMRC

After successfully signing up for MTD for VAT with HMRC, log into your FreeAgent account and navigate to settings.

KB-GS-Ess-MFV-02-Final.png

Select the ‘HMRC Connections’ option located in the ‘Integrations’ section

KB-GS-Ess-MFV-03-Final.png

Select ‘Connect FreeAgent to HMRC’

KB-GS-Ess-MFV-04-Final.png

You'll be redirected to the HMRC site to complete the connection process, select ‘continue’ and fill in your Government Gateway credentials.

KB-GS-Ess-MFV-05-Final.png

If you’ve successfully completed the connection you’ll see the following screen

KB-GS-Ess-MFV-06-Final.png

And that’s it!

You can continue to file your VAT returns as normal.

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