Acting as a VAT Agent for Clients

If you're an accountant or bookkeeper acting for clients on VAT matters, you'll need the right HMRC online access and formal authorisation from each client. This article explains how to set up and use the agent services system to manage multiple client VAT accounts, submit returns on their behalf,...

Setting up as a VAT agent

To act as a VAT agent, you need to create an agent services account with HMRC. This is separate from the older HMRC online services for agents account.

If you're new to tax agency work, you must first register with HMRC as a tax agent before you can access these services.

Once you have your agent services account, you'll be able to:

Request authorisation from clients
Submit VAT returns through Making Tax Digital for VAT compatible software
Manage client VAT details
Access multiple client accounts from one login

Making Tax Digital for VAT

All VAT-registered businesses should now be signed up for Making Tax Digital for VAT. HMRC has automatically enrolled remaining businesses unless they are exempt or have applied for exemption. You no longer need to sign up clients yourself.

To work with Making Tax Digital for VAT on behalf of clients, you need compatible software. HMRC provides a searchable list of approved software options.

Getting authorisation from clients

Before you can access a client's VAT account or submit returns on their behalf, they must formally authorise you through HMRC's digital authorisation system (sometimes called the "digital handshake").

Here's how the process works:

1. Sign in to your agent services account

2. Select 'Ask a client to authorise you'

3. Create an authorisation request – this generates a unique link

4. Send the link to your client

5. Your client must use that link to respond before it expires

The client needs to follow the link and complete the authorisation process themselves. Once they've done this, you'll have access to manage their VAT affairs.

You need to repeat this process for each new client. Existing clients you already had authorisation for through other systems may need to grant fresh authorisation for Making Tax Digital services.

What you can do for authorised clients

Once a client has authorised you, you can use HMRC's online services to:

Submit VAT returns through your compatible software
Change VAT registration details
Print VAT certificates
Print previous VAT returns
Cancel VAT registration if needed

To access these services, you'll need your Government Gateway user ID and password for your agent services account, plus information about the specific client's business.

Important deadlines and requirements

If your client's business details change, you must tell HMRC within 30 days.

Before you can submit VAT returns through your software, you need to authorise the software itself. Your software supplier can guide you through this if you're not sure how.

Services that require different access

Some VAT-related services don't use the agent services account system. For these, you'll need to use the older HMRC online services:

EC Sales Lists – You must be VAT-registered yourself to use this service. EC Sales Lists are required if your client is a Northern Ireland trader who has supplied goods from Northern Ireland to a VAT-registered business in an EU country, or if they've filled in box 8 of their VAT return.

VAT EU Refunds – This service is only for Northern Ireland traders who need to reclaim VAT paid in another EU country. To use it, you must either be VAT-registered yourself or apply for a VAT agent reference number. When you apply for authorisation through this service, your client will receive an authorisation code containing the letters 'VR', which you need to enter to complete the authorisation.

Notification of Vehicle Arrivals – Use this to tell HMRC when your client has brought a vehicle permanently into the UK.

For these services, you register and set up authorisation for each client separately through HMRC online services (not your agent services account).

Managing multiple clients

Your agent services account allows you to manage multiple client VAT accounts from a single login. Once clients have authorised you, you can switch between their accounts without logging out and back in again.

During busy periods, HMRC's online services may be slow. You can check the service status on the HMRC website if you're experiencing problems.

Getting help

If you need help changing a client's details or have technical problems with the online service, contact the VAT online services helpdesk.

For changes that can't be made online, you may need to complete form VAT484 (Changes to Registration Details) instead.

Sources

This article provides general guidance based on current HMRC rules. For advice specific to your situation, speak to your accountant.