This section is for agents submitting clients' MTD returns through an agent services account. If you are a business submitting your own MTD returns, see Grant authority: businesses.
Introduction
You need to grant authority for HMRC to communicate with the software, using your agent services account credentials. If you already use an agent services account for MTD for VAT, you do not need to create another one as you can use the same one for MTD for income tax.
You can grant authority for both MTD for VAT and Income Tax. The process is the same, as shown below.
Once you have granted authority as shown below, it is saved to the your PC and lasts for 18 months.
Sign up your clients to MTD
Before granting authority, your clients needs to be signed up to MTD with HMRC for the relevant tax(es), and you need to be authorised to act as their agent for the tax(es) in your agent services account:
•If granting authority for MTD for Income Tax: Follow the instructions in Sign up to MTD for Income Tax: Agents.
•If granting authority for MTD for VAT: Your VAT registered clients will already be signed up for MTD for VAT. If you are not yet authorised to act as their agent in your agent services account, obtain authorisation through the digital handshake process by signing into your agent services account and selecting Ask your client to authorise you. If you encounter any issues during this process, please contact HMRC.
Note:
You only need to go through the whole process below once every 18 months1.
After you have completed the process below, you just need to tick 'I'm using my Agent Services Account for this client' in the Grant authority dialog of each VT file (steps 1 and 2).
The process below is the same whether you use VT Transaction+, VT Cash Book, VT Report or VT MTD for Excel, unless otherwise stated.
In any VT file containing a client's VAT returns (and/or Income Tax quarterly updates):
1.Open the grant authority dialog (the method depends on which VT program you are using):
•VT Transaction+ or VT Cash Book: Select MTD > Taxpayer > Grant authority
•VT Report: Select Taxpayer > Grant authority
•VT MTD for Excel: Select Add-ins > VT MTD > Taxpayer > Grant authority
Note: To activate the Taxpayer menu in VT Report, you need to be in an MTD template (Application > Create a new file based on a template) or set a sheet as an MTD type (Sheet > Data Type > [Select a tax type])
2.Tick 'I'm using my Agent Services Account for this client':
3.Click on Add name and enter your name (as the agent). Then click on Grant authority to VT.
4.Tick the VAT box then click OK:
(Note: If you want to submit VAT returns and income tax quarterly updates, tick both boxes, even if you have previously granted authority for either one.)
5.The following page then opens in your web browser. Click on Continue (If this page does not open, see Grant authority errors.):
6.Click Sign in to the HMRC online service:
7.Select Government Gateway then Continue:
(Do not select GOV.UK One Login as this service does not currently cover MTD for VAT or MTD for Income Tax)
8.Enter the government gateway user ID and password for your agent services account (not the 'HMRC online services for agents account) and select Sign in:
If you cannot find this ID, search for 'Government Gateway user ID' in your emails. Alternatively, select 'I have forgotten my Government Gateway user ID' from the sign in screen and follow the instructions given. If necessary, you may need to contact HMRC.
Note: You may be asked to provide additional information for identity checks when you sign in (for example National Insurance number and date of birth). The NI number and date of birth refer to the individual partner, director or sole trader in your business who created the agent services account, not your client.
9.Select how you want to receive the security access code and click Continue:
10.Enter the access code where indicated and click Continue:
11.Click Give permission:
12.Click Copy:
13.Go back into the VT application where you granted authority, by clicking on its icon on the taskbar at the bottom of the screen:
•VT Transaction+
•VT Cash Book
•VT Report:
•VT MTD for Excel
14.You should then see the following dialog. Click Paste then OK:
(If you cannot see this dialog, open the Grant Authority dialog as described in step 1, and click on I have just granted authority and want to enter the authorisation code.)
The following message appears, which confirms that you have successfully granted authority:
15.To apply the granted authority to a VT file for a client, you just need to perform steps 1 and 2 and above.
How authorisation codes are stored
Once you have carried out the steps above, the authorisation code is stored on the PC where you granted authority.
The same authorisation code can be used by VT Transaction+, VT Cash Book, VT Report and VT MTD for Excel for any client that is linked to your agent services account, by ticking 'I'm using my Agent Services Account for this client' in the grant authority dialog in the client's VT file.
If you use more than one PC, you need to grant authority from each PC you are using. VT applications support and can store the codes for any number of agents.
You can cancel the authority at any time by clicking on the Forget authority caption in the Grant Authority dialog.
See also:
Errors when submitting a VAT return
1.Except if you change your PC.
