Troubleshoot VAT Return error messages

If you get an error message when you file your VAT return with HMRC, try these troubleshooting suggestions to fix it.

If you're not sure why you received the error message or are unclear on the steps to take, talk to your accountant or bookkeeper.

Error 1046 - Authentication Failure. The supplied user credentials failed validation for the requested service.

The Gateway ID, password or VAT number submitted was incorrect.

This error can occur if your HMRC Online Services password is too long. HMRC passwords must:

  • Be between 8 and 12 characters
  • Contain at least one number
  • Contain at least one letter
  • Not use special characters
  • Not contain the word 'password'.
To resubmit your VAT Return online to HMRC:

  1. Log into your HMRC Online Account and add a password that follows the HMRC guidelines.
  2. In Xero, in the Reports menu, select All Reports.
  3. Under Filed with HMRC tab, select the failed return.
  4. Click File Again at the bottom of the report.

The File Again button will continue to show until the return has been filed successfully.

Error 8506 - A return has already been received for this period.

Check your filed returns through the HMRC Gateway.

Error 8507 - The VAT period you have entered for the VRN was not found.

You must enter a VAT period which is open, that is, a VAT return is due.

Delete the failed published return in Xero. Prepare a new return with the correct VAT period and resubmit to HMRC.

Error 8508 - The VRN specified was not found.

Delete the failed published return in Xero. Prepare a new return with the correct VAT number and resubmit to HMRC.

It is not possible to delete any VAT Return from the Filed with HMRC tab in Xero.

Xero will use published VAT Returns for marking the transactions as filed in the organisation, eg for calculation of late claims.

Need more help?

Contact HMRC to resolve the error.