NJT VAT Return Manager (MTD)

(Bridging software for online filing of the MTD compliant VAT Returns to Her Majesty's Revenue and Customs)

Main Processes Explained

The following sections describe each of the main processes used by the software.



The 'Business' software licence allows one Taxpayer record to be created, whereas the 'Agencyxx' licence allows for multiple Taxpayer records to created up to the total number allowed by the licence (denoted by the xx).


MTD Edit Record Image

1.1 Data Items Explained

  1. Taxpayer Name:
    This is the name of the Taxpayer. You can enter a name up to 50 characters. Certain speacial characters are prohibited, such as a Question Mark (?) or colon (:). The Name will be validated and a message displayed where invalid characters are found.
  2. VAT Registration Number:
    This is your 9-digit VAT reference number allocated by HMRC.
  3. Local Reference:
    This a free text item that you may use to identify a Taxpayer record. This item is included as part of the search in the 'Find' routine.
  4. Status:
    There are two values to choose from:
    'Active' - This is the normal status setting.
    'No More' - You can set the status to 'No More', for example, where you no longer submit returns for the Taxpayer. This setting also allows you to delete 'unfulfilled' Obligations. Also the Taxpayer record will be excluded from the 'Obligation Manager' lists.
  5. HMRC Account Type:
    There are two values to choose from:
    'Taxpayer' - Use this setting for a Taxpayer with a single VAT account ('Business' Licence) or for a Taxpayer with up to 10 VAT accounts ('Business10' Licence) or for a Taxpayer with up to 25 VAT accounts ('Business25' Licence).
    'Agent' - Use this setting where an Agent, with an 'Agent Services' account, submits VAT Returns on behalf of Taxpayers ('Agency Licence').
  6. For further information see the 'Grant Authority' section.

1.2 Add a Taxpayer Record

  1. Click on the 'Add' button.
  2. Taxpayer Name:
    Enter the Taxpayer Name or Trading Name, subject to the validation rules.
  3. VAT Registration Number:
    Enter your 9-digit VAT reference number allocated by HMRC.
  4. Local Reference:
    Optionally enter your local reference, (limited to 10 characters in length). For example, Post Code or an internal code used to identify the Taxpayer.
  5. Status:
    You can choose 'Active' or 'No More'. When the status is set to 'No More', you can delete unfulfilled obligations. Also the Taxpayer record will be excluded from the 'Obligation Manager' lists.
  6. HMRC Account Type:
    You can choose 'Agent' or 'Taxpayer'.
    Note 1: This is associated with the MTD account used to grant authority.
    Note 2: For 'Business', 'Business10' & 'Business25' licences, this is locked as 'Taxpayer'.
  7. Click on the 'Save' button.
  8. Note: the details will be validated before saving.

1.3 Edit a Taxpayer Record

  1. Click on the 'Edit' button.
  2. Taxpayer Name:
    You can amend this item as you wish, subject to the validation rules.
  3. VAT Registration Number:
    You can only amend this item where no VAT Returns exist.
  4. Local Reference:
    You can amend this 'Free Text' item as you wish, but is limited to 10 characters in length.
  5. Status:
    You can choose 'Active' or 'No More'. When the status is set to 'No More', you can delete unfulfilled obligations. Also the Taxpayer record will be excluded from the 'Obligation Manager' lists.
  6. HMRC Account Type:
    You can choose 'Agent' or 'Taxpayer'.
    Note 1: This is associated with the MTD account used to grant authority.
    Note 2: For 'Business', 'Business10' & 'Business25' licences, this is locked as 'Taxpayer'.
  7. Click on the 'Save' button.
  8. Note: the details will be validated before saving.

1.4 Delete a Taxpayer Record

  • Within the 'Edit' routine, click on the 'Delete' button.
  • Note 1: Taxpayer records can be deleted only where no VAT Returns have been submitted to HMRC. I.e. no 'Fulfilled' obligations exist.
  • Note 2: If you have already submitted a VAT Return to HMRC, you can change the Status to 'No More'.


  • Before you can communicate with HMRC using this software, you first need to 'Grant Authority'. This authority will normally last for 18 months, however it can be revoked at any time via your HMRC account or via this software (see 2.5 below).
  • Under the MTD system, the process to login to your HMRC MTD account is completed externally to this software. Your default Web browser is opened by this software whereby you are prompted to login and grant authority. This method has been introduced by HMRC to ensure segregation of the login process from 3rd party software.
  • For information, Agents/Taxpayers must register/sign-up for MTD with HMRC before any MTD compliant software can be used. Agencies must also obtain the consent of each Taxpayer before VAT Returns can be submitted on their behalf.

2.1 For Taxpayers with one VAT account

You would grant authority using your MTD account. You would also purchase a 'Business' software licence.
Whilst adding your Taxpayer record, within the software, you would set the 'HMRC Account Type' to 'Taxpayer'. This will be locked after you purchase a 'Business' software licence.


2.2 For Taxpayers with up to 10 VAT accounts

You would grant authority using your MTD account, independently, for each 'Taxpayer' record created within the software. You would also purchase an 'Business10' software licence.
Whilst adding each Taxpayer record, within the software, you would set the 'HMRC Account Type' to 'Taxpayer'.


2.3 For Taxpayers with up to 25 VAT accounts

You would grant authority using your MTD account, independently, for each 'Taxpayer' record created within the software. You would also purchase an 'Business25' software licence.
Whilst adding each Taxpayer record, within the software, you would set the 'HMRC Account Type' to 'Taxpayer'.


2.4 For Agents that submit VAT returns on behalf of Clients

You would grant authority using your MTD 'Agent Services' account. You would also purchase an 'Agencyxx' software licence (where xx is the total number of clients required).
Whilst adding each Taxpayer record, within the software, you would set the 'HMRC Account Type' to 'Agent'.
Note 1: All Taxpayer accounts that have been linked to your Agent Services account and have given consent, would be automatically authorised under a single Grant Authority process.
Note 2: You only need to grant authority once, using any of your ('Agent' type) Taxpayer records. After you have granted authority, all Taxpayer records, with a 'HMRC Account Type' of 'Agent', would be automatically authorised.


2.5 Process to Grant Authority

  1. Click on the 'Grant Authority' button via the Dashboard.
  2. A message will be displayed explaining what you need to do.
  3. Click 'OK' to continue.
    (You will then be re-directed to the HMRC website via your default Web Browser.)
  4. Read the details on the HMRC 'Landing' Page then click the 'Continue' button.
  5. Sign-in to your HMRC account.

  6. Grant Authority:
    1. Click the 'Grant Authority' button (Your Authorisation Code will be displayed).
    2. Click the 'Copy' button.
    3. Then return to the software.
    4. Click the 'Paste' button.
    5. Click the 'Continue' button.

2.6 Process to Revoke Authority

  1. Click on the 'Grant Authority' button via the Dashboard.
  2. A message will be displayed explaining what you need to do.
  3. Click 'OK' to continue.
    (You will then be re-directed to the HMRC website via your default Web Browser.)
  4. Read the details on the HMRC 'Landing' Page then click the 'Continue' button.
  5. Sign-in to your HMRC account.

  6. Revoke Authority:
    1. Click the 'Do Not Grant Authority' button.
    2. Then return to the software.
    3. Click the 'Access Not Granted' button.


  • Under the MTD system, HMRC now provides you with the details of the latest VAT Return that is required to be submitted. This is called the 'VAT Return Obligation'. This obligation is obtained using the 'Retrieve Obligation' button. After it has been retrieved, the VAT Return 'Status' is set to it's initial state of 'Open'. The next step will be to import your prepared VAT Return.
  • For information, the 'Status' settings used by this software are:
    'Open' - Set when the Obligation has been retrieved from HMRC.
    'Draft' - Set when VAT Return has been imported.
    'Fulfilled' - Set when VAT Return has been submitted to HMRC.
  • Under normal circumstances, your next Obligation is retrieved immediately following the successful submission of you VAT Return. However, to cater for any potential changes in your circumstances before your next submission, you can retrieve the Obligation again. Where circumstances have changed, an updated Obligation is retrieved, overwriting the original. Where the Obligation has not changed, a message will be displayed stating that your Obligation is up to date.



MTD Import Image
  • Prepared VAT Returns can be imported after the obligated VAT Return has been retrieved from HMRC. Under the MTD system, all data transfer must be undertaken digitally.
  • This software allows you to import VAT Returns from a variety of systems.
    [Click here] for a full list of supported systems.

4.1 Import Process

  1. Select the 'Import Type' option from the drop down list.
  2. Click on the 'Find VAT Return' button.
  3. Locate and highlight the desired file from the 'Browse' window, then click on the 'Open' button.
    (Note: At this point the file will be validated. If the validation is successful, the Import form will be populated with the VAT Return details, otherwise an Error message will be displayed.)
  4. Click on the 'Save' button, otherwise click on the 'Cancel' button.
    (The VAT Return 'Status' will be updated to 'Draft')
Note: After you have completed the first Import for a Taxpayer, the 'Import ID' (derived from the 'Import Type') and file location details are saved. These details become the default settings for subsequent Imports. I.e. the software remembers your last import for each Taxpayer."


  • VAT Returns can be submitted to HMRC after the prepared VAT Return has been Imported. Note: the VAT Return Status will 'Draft'.
  • After the VAT Return has been successfully submitted to HMRC, the following will occur:
    1. The Status will be updated to 'Fulfilled'.
    2. A new Tab called 'HMRC Receipt' will become visible.
    3. The 'Save as PDF & Print' button will become visible.
    4. Also you will be prompted to retrieve the next VAT Return Obligation.



MTD Payments Image
  • Both liabilities and payments can be retrieved and viewed on an ad-hoc basis. Simply enter a 'Start' date and click on the 'Retrieve' button. All records held by HMRC, from the date entered up to today, will be retrieved and displayed.



MTD VAT Return Image
  • 'Fulfilled' VAT Returns resident on the HMRC MTD system can be viewed on an ad-hoc basis. Simply enter a 'Period End' date and click on the 'Retrieve' button.
    Note: This includes VAT Returns that were not submitted by this software.



MTD Obligation Manager Image

For the Agency versions, an 'Obligation Manager' function is available to assist the management of returns, including a list of Taxpayers without an obligated VAT Return and a chronological list of outstanding obligated VAT Returns.


List 1: Active Taxpayers without an Obligated VAT Return
  • Displays a list of 'Active' Taxpayers where the obligated VAT Return has not yet been retrieved from HMRC.
  • Note: This situation would normally only occur in the following circumstances:
    1. After you have created a new Taxpayer record.
    2. After the last VAT Return submission, you responded with 'No' when prompted to retrieve the next obligation.
List 2: Due and Overdue VAT Returns
  • Displays a list of VAT Returns that are either Overdue or Due for submission with the next XX days.
  • This list can be customised by adjusting the days to be reported. For example, you may wish only to display the 'Due' submissions for the next 3 months. In which case you would change the 'Days' value to 91 and click the 'Refresh' button.
  • Note: All overdue Returns are always displayed. Also the 'Days' value can be changed in 7-day intervals.