Thanks for bringing this to our attention, @paul272727.

I'm here to lay down possible reasons why you're getting this kind of error while connecting QuickBooks Online to HMRC.

You might want to double-check the following causes while trying to connect with HRMC:

• You have not registered for MTD.
•  You've registered for MTD but have no access to HMRC.
• In QuickBooks, you must re-authenticate MTD.
• You entered the wrong credentials for the Government Gateway.
• Make sure you're using the correct VAT number.
• An accountant set up the MTD connection.
• A client established the MTD connection (for accountants)
• You have no outstanding HMRC commitments.

Next, try some of these suggestions to get your QuickBooks back to normal if you encounter the Take action status when attempting to connect to Making Tax Digital (MTD) for VAT. Check out this page to aid the potential error: Take action status in connecting to HMRC for MTD.

Furthermore, this article will demonstrate how to configure QuickBooks Online Making Tax Digital (MTD) for VAT. It is a new method for companies to manage their taxes and electronically submit their VAT legal returns to HMRC. See this as your reference: Set up MTD for VAT in QuickBooks Online and connect to HMRC.

Please connect with us again if you need further with your transactions and taxes. You can use this thread anytime.