Alternatively, clients can sign themselves up to MTD.
Switching to MTD filing in FreeAgent
The final stage of the process is to complete the setup of your MTD-compatible software. To do this you will need to have added all your clients to the software you plan to use for MTD filing.
Once you’ve added all your clients to FreeAgent, you should then:
Navigate to ‘My Clients’ from your practice dashboard and select a client’s name from the list.
Select ‘Switch to MTD filing’. This will allow you to submit MTD VAT returns from FreeAgent on that client’s behalf. Please note that once a client has had its filing switched to MTD, it cannot be reverted so make sure the client has been signed up to MTD before completing this step.
Once the client has been successfully switched to MTD filing you’ll see a message confirming this.
Repeat this process for all your VAT-registered clients in FreeAgent.
Clients with full (level 8) access to FreeAgent can complete this process themselves by following the steps outlined in our Knowledge Base.
However, you may prefer to do this on their behalf instead. Clients with lower levels of access will not have the option to do this themselves.
Managing the process
So it’s a good idea to sign up all your VAT-registered businesses to MTD (not just those over the threshold). If you have a large number of clients to sign up, you might find it helpful to use a spreadsheet to manage the process. Here’s some suggested guidance for doing this:
1. Create a spreadsheet with the following columns:
A: Client’s name
B: VAT registered? (y/n)
C: Authority to file VAT? (y/n)
D: Practice or self-signup? (practice/self)
E: Signed up to MTD with HMRC? (y/n)
F: Set up for MTD VAT filing in software? (y/n)
2. Obtain a list of your clients and enter their names into Column A of your spreadsheet.
3. Work through column B, marking up which of your clients are VAT registered and therefore need to be signed up for MTD for VAT.
4. Work through column C, indicating which of your clients you have authority to file VAT on behalf of. If you don’t have authority for a client you can request it from your agent services account. Alternatively, the client can file their own VAT returns under MTD (in FreeAgent they need level 8 access to do this).
5. Work through column D, indicating which of your clients your practice will be signing up for MTD, and which of your clients will be signing themselves up (in FreeAgent).
6. Update column E when you sign a client up for MTD or a client signs themselves up for MTD VAT filing with HMRC.
7. Update column F when you set a client up for MTD VAT filing in the relevant MTD-compatible software or when a client does this for themselves.