How to Authorise DMO Accountants as Your VAT Agent

If you’re VAT registered and have asked DMO Accountants to prepare and submit your VAT Returns, you’ll usually need to authorise us with HMRC first.

HMRC now uses a secure online authorisation process known as the Digital Handshake. Rather than completing paper forms, we’ll send you a secure link from our HMRC Agent Services Account. You simply log into your HMRC Business Tax Account, accept the request, and we’ll then be able to manage your VAT affairs online.

For many businesses, the biggest challenge isn’t accepting the authorisation request—it’s making sure they have a Business Tax Account with VAT added in the first place.

This guide explains everything you need to know.

Why Do I Need to Authorise My Accountant?

HMRC requires your permission before an accountant can:

  • Submit VAT Returns
  • View your VAT information
  • Check VAT liabilities
  • Deal with HMRC on your behalf
  • Help resolve VAT issues

Without authorisation, we cannot access your VAT records, even if we’ve prepared your accounts.

Before You Start

You will need:

  • Your Government Gateway User ID
  • Your Government Gateway Password
  • Your VAT Registration Number
  • Access to the email address linked to your HMRC account
  • A mobile phone if HMRC asks for identity verification

If you’ve forgotten your Government Gateway details, these can usually be recovered from HMRC’s sign-in page.

Step 1 – Create a Government Gateway Account

If you already have a Government Gateway account, you can skip this section.

If not:

Visit the HMRC sign-in page and select “Create sign in details”.

You’ll be asked to:

  • Enter your email address
  • Verify your email
  • Create a password
  • Set up recovery information
  • Enable two-factor authentication

HMRC will then issue your unique Government Gateway User ID.

Important: Save your User ID somewhere safe. You’ll need it whenever you access HMRC services.

Step 2 – Create Your HMRC Business Tax Account

Once you’ve created your Government Gateway credentials, you’ll be asked what type of account you want.

Choose:

Organisation

This option is suitable for:

  • Sole Traders
  • Partnerships
  • Limited Companies
  • LLPs
  • Charities
  • Other business entities

You’ll then be guided through the security setup process before your Business Tax Account is created.

Step 3 – Add VAT to Your Business Tax Account

This is the step many businesses miss.

Creating a Business Tax Account does not automatically add your VAT account.

If VAT isn’t linked, you won’t be able to accept our authorisation request.

After signing in:

Navigate to:

Manage Account

then select

Add a tax, duty or scheme

(or Get online access to a tax, duty or scheme, depending on how HMRC displays the menu).

Select:

VAT

followed by

VAT services.

Step 4 – Enter Your VAT Details

HMRC will ask for:

  • Your VAT Registration Number (enter the number only, without the “GB” prefix)
  • The effective date of your VAT registration

You can find these on your VAT Registration Certificate.

If your business registered recently, HMRC may also ask for your VAT registration application reference number as part of its anti-fraud checks.

Step 5 – Wait for VAT to Be Added

HMRC will verify your details.

Once complete, you’ll see VAT listed as one of the services in your Business Tax Account.

You are now ready to authorise us.

Sole Traders

If you’re a sole trader, your Business Tax Account will normally contain:

  • VAT
  • Self Assessment
  • Making Tax Digital (where applicable)

Although you are not a limited company, you should still create an Organisation account for your business taxes.

Partnerships

For partnerships:

The nominated partner should normally create the Business Tax Account.

The account should be linked using the partnership’s Government Gateway credentials and VAT Registration Number.

Limited Companies

For limited companies:

The person creating the account is usually:

  • A director
  • Company secretary
  • Authorised employee

You’ll use the company’s Government Gateway credentials rather than your personal Government Gateway account.

Step 6 – We’ll Send You a Secure Authorisation Link

Once your VAT account has been added, we’ll send you a secure authorisation email.

The email contains a unique HMRC link.

This is sometimes called the Digital Handshake.

The link is valid for 21 days, after which it expires if no action is taken.

Step 7 – Open the Link

Click the link we’ve sent.

HMRC will ask you to sign in.

Make sure you sign in using the Government Gateway account that holds your VAT registration.

Many businesses have multiple Government Gateway accounts, so using the wrong one is one of the most common reasons authorisations fail.

Step 8 – Accept the Authorisation Request

HMRC will display:

  • Our firm name
  • The tax involved (VAT)
  • Confirmation of what we’re requesting

Check the details carefully.

If everything is correct:

Select Accept.

HMRC will immediately confirm that we’ve been authorised.

What Happens Next?

Once you’ve accepted the request, we’ll usually gain access to your VAT records shortly afterwards.

We’ll then be able to:

  • Submit VAT Returns
  • View your VAT account
  • Check payment deadlines
  • Correspond with HMRC regarding your VAT affairs

You remain responsible for ensuring the information submitted to HMRC is complete and accurate.

Common Problems (and How to Fix Them)

“I can’t see VAT”

VAT hasn’t been added to your Business Tax Account yet.

Follow the steps above to add the VAT service first.

“The link has expired”

HMRC authorisation links expire after 21 days.

Simply contact us and we’ll send a new one.

“I have more than one Government Gateway account”

This is very common.

You must use the Government Gateway account that contains your VAT registration.

If you use the wrong account, HMRC won’t find the authorisation request.

“I don’t know my VAT Registration Date”

You’ll usually find it on:

  • Your VAT Registration Certificate
  • Previous VAT Returns
  • HMRC correspondence

If you’re unsure, let us know and we’ll help you locate it.

“I’ve forgotten my Government Gateway login”

Use HMRC’s online recovery service to retrieve your User ID or reset your password before attempting to authorise us.

Frequently Asked Questions

Can I authorise DMO Accountants without a Business Tax Account?

No. HMRC’s digital authorisation process requires you to have a Business Tax Account with VAT added before you can accept our request.

Is it safe?

Yes.

The authorisation is completed securely through HMRC’s own website.

You should never share your Government Gateway User ID or password with anyone, including your accountant.

Will I lose access to my VAT account?

No.

You’ll still have full access to your Business Tax Account.

Authorising us simply allows us to act on your behalf as your accountant.

How long does the authorisation take?

Most authorisations are completed within a few minutes once you’ve accepted the request.

Need Help?

If you get stuck at any point, don’t worry—we can help you through this process.

At DMO Accountants, we’ll guide you through:

  • Creating a Government Gateway account
  • Setting up your Business Tax Account
  • Adding your VAT service
  • Accepting our authorisation request
  • Resolving HMRC login issues where possible

If you need assistance, simply get in touch and we’ll happily talk you through the process step by step.