Do you know how to remove the Take Action flag on a failed VAT return? I need to edit HMRC credentials but cannot until flag removed.

Hello there, Rose.

Let me share some additional information regarding the Take action flag on a failed return in QuickBooks Online (QBO).

QuickBooks does not allow credential edits while a VAT return is in a failed state. To address the issue and remove the flag, begin by reviewing the error message linked to the failure. Click the flagged VAT return to identify the specific cause of the problem.

Once determined, if the flag is preventing you from accessing your credentials, follow these steps to disconnect HMRC Connection.

1. Go to the Gear icon and select Account and settings.
2. Click Advance.
3. Choose the pencil icon next to Making Tax Digital.
4. Select Learn how to Disconnect and follow the steps.

After that, edit your credentials and reconnect your MTD by going through the setup again. Ensure you log in with the correct HMRC credentials and complete the authorization process.

Once your HMRC credentials have been successfully updated, return to the failed VAT return and proceed with resubmitting it.

If there’s anything else you need, please don’t hesitate to click the Reply button below.