(If you are the agent)
This page is for agents submitting quarterly updates for clients through your agent services account. If you are a taxpayer submitting your own quarterly updates, please refer to the guidance here instead.
You have been directed to this page because the National Insurance (NI) number of the taxpayer set up in VT is not associated with the government gateway user ID entered when you granted authority (or there is no MTD record).
It follows from the above that the error must be caused by one or more of the following:
1. You have not ticked 'I'm using my agents services account for this client.'
Select Taxpayer > Grant authority and make sure 'I'm using my agent services account for this client' on the bottom left of the grant authority dialog is ticked.
2. The NI number set up in VT is incorrect
It is a simple matter to check every single character. A National Insurance number is made up of 2 letters, 6 numbers and a final letter, for example, QQ123456A.
Check the NI number in the software:
In VT Transaction+/VT Cash Book: select MTD > Taxpayer > NI and VAT numbers
In VT Report: select Taxpayer > Details
In VT MTD for Excel: check the NI number you have entered on the spreadsheet
3. The wrong government gateway user ID was used when granting authority
VT has no way of knowing what user ID was used to grant authority or of accessing the name of the user. Hence the best thing to do is to simply re-grant authority and be very careful that the correct user ID is entered into HMRC's web page.
When re-granting authority, make sure the checkbox labelled I'm using my agent services account... is ticked.
Furthermore, if you also submit VAT returns, make sure both VAT and Income Tax are selected, even if you have previously granted authority for VAT.
Please note that an agent should use the government gateway user ID issued for the agent services account and not for any other HMRC online service.
You can check if your government gateway ID is the correct one by signing in to your agent services account, which will clearly state if it is your agent services account or a different online service.
If you have forgotten your government gateway ID, select one of the options in the 'Problems signing in' section on the page where you enter your government gateway details, and carry out the instructions that follow.
4. You are not authorised as the client's agent for MTD for Income Tax
You can check if you are authorised by signing into your agent services account.
If you are not authorised, you need to either:
copy the authorisation from self-assessment (if you are authorised as the client's agent for self-assessment), or
obtain authorisation through the digital handshake process (if you are not authorised as the client's agent for self-assessment)
5. You have not ticked 'I'm using my agent services account for this client' in the Grant Authority dialog in a new client's VT file, after having granted authority.
Select Taxpayer > Grant authority and make sure 'I'm using my agent services account for this client' is ticked.
6. You are a supporting agent and have not installed the latest version of the software
Please install the latest version of VT Software from https://www.vtsoftware.co.uk/.
7. There is a fault with your MTD record on HMRC's computers
If you have checked all of the above causes and are still getting this error, this indicates a known issue on HMRC's side of the records not being completed, in which case contact HMRC:
Individual taxpayers: call 0300 200 3310, then select option 2
Agents calling on behalf of taxpayers: call 0300 200 3311
HMRC error code
HMRC's code for this error is CLIENT_OR_AGENT_NOT_AUTHORISED.
Why this error arises
When any MTD application such as VT sends a request to HMRC for a list of your quarterly updates (or attempts to submit a quarterly update), it has to supply two pieces of information that identify you. These are the NI number set up in the application and a 32 character code stored in the application. The code is in turn is derived from the authorisation code issued when you granted authority.
HMRC uses the 32 character code to access the MTD Income Tax record for the government gateway user ID entered when you granted authority.
This error arises when the two items above do not match.
VT would like to assure you that this error does not arise from a software fault in VT.
VT is not able to provide support on the use of HMRC's website. If
necessary, please contact HMRC.
