Troubleshoot Sage Error 1046 is Easy Way

Troubleshoot Sage Error 1046

Now that you have installed Sage 50 on your computer and reap the benefits of multiple features like running payroll to pay your employees, generating invoices, handling payments, managing your inventory, etc it is also important to get yourself registered with the tax authorities so that you know when and how to timely pay your taxes. 

Some users of Sage 50 in the United Kingdom have reported that a Sage error 1046 is being displayed every time they register or log in with their credentials on the tax authority’s website. Users from other regions are also seeing similar errors getting displayed but their reasons could be different. There in this blog, we take up Sage error code 1046 and provide you with the ways that you can use to fix this error.

Also Read: How to fix Sage error 1334

More About Sage Error Code 1046

Error code 1046 in Sage is accompanied by the message “Authentication failure. The supplied user credentials failed validation for the requested service.” or “We could not accept your request.” It is most commonly faced by the users of the United Kingdom as they have to register with Her Majesty’s Revenue and Customs (HMRC) for performing tax-related activities and also because Sage maintains a record of your tax filing. This error is most commonly due to an authentication error but busy servers and issues related to SQL are also held responsible for error 1046.

Note: Sage Error SQL State 08001

What are the Reasons for Sage Error 1046?

There can be several reasons why Sage error code 1046 is being displayed on your screen. These are –

  1. You have not logged in properly to the His Majesty’s Revenue and Customs website.
  2. Either the username or the password or both entered by you are incorrect or are of another tax application.
  3. You may have logged onto the HMRC website earlier and your previous session is still active.
  4. The version of Sage Accounts that you are using is not compatible with the government website.
  5. The username and password entered in the eSubmissions settings are incorrect.
  6. The Sage corporate tax credentials do not match with the documents submitted to the HMRC.
  7. Your bank’s website or gateway is busy and therefore unable to authenticate your details.
  8. You have clicked on the Submit as an Agent checkbox despite not being registered with the HMRC as an agent.
  9. SQL is not authorized for access or is not authentic.

How can you fix Error 1046 in Sage 50?

For fixing the Sage error code 1046 you can use one of the troubleshooting methods mentioned below according to the issue which is causing the error-

By Verifying if the District and the tax Reference Number are Correct

  1. Open the Sage Control Center.
  2. Click on File and select Data Set Properties.
  3. Now, click on View Practice Client in practice details.
  4. Go to the tax details and rectify any errors.
  5. Also, check whether the date and year of taxes are correct or not.

You May Also Read: Sage Error Ause099

By Changing the E-Submission Settings

  1. First of all click on e-submissions and then click on the E-Submission Settings option.
  2. Now, replace the old credentials and enter your new credentials( including your tax district and reference number with no blank spaces and in upper case letters only)
  3. Enter your user ID and password.
  4. Then click on the Contact Details tab and make sure that only the relevant checkbox is selected (if you are not registered with the HMRC as an agent then do not select submit  as an agent)
  5. Click on the Save button and then press the Close button.
  6. Log in to the HMRC website and verify that the tax district and the reference details in the e-Submission Setting are correct.

Also, ensure that PAYE status for Employers Service is active.


We at understand the importance of a business to have a good standing with the tax authorities of their country and therefore maintain and track all tax records. Therefore, we have provided you with the information necessary to ensure that an error like 1046 on your Sage accounting application does not delay the process of registration and updating your tax records. Dealing with errors like these can be complex for some users and they might require assistance while working with both Sage and HMRC. Therefore, if the error still persists and you are still facing problems while trying to log in to HMRC you can contact them, or for another query related to Sage, you can get in touch with our experts and we will provide you with an answer or a solution at the earliest.


What is Her Majesty’s Revenue and Customs (HMRC)?

It is the tax authority of the United Kingdom government and is responsible not just for collecting taxes and enforcing tax and customs laws but also for paying child benefits, ensuring minimum wages, and funding state-sponsored projects.

What are the details which should be matched with the one provided to the HMRC?

Are there other errors in Sage similar to error 1046?