This completes the set up on the VM Server in Azure but now need to set up the computers with Power BI Desktop that need access to the database.
Restart SQL Server (MSSQLSERVER) and SQL Server Agent (MSSQLSERVER) services. Click on the certificate tab, select the certificate, click on Ok. Open SQL Server configuration Manager, go to SQL Server Network Configuration > Protocols for MSSQLSERVER, right click on properties. Click Next, browse to the file created in step 7, click open, accept defaults and click Next twice, Finish and OK. In the Certificate manager window, expand to Trusted Root certification Authorities > Certificates, right click on certificates > all tasks > import. Accept the defaults and click Next 3 times, Click browse, and select a location and file name to export the certificate, click save, and then next, Finish and OK. Right click again on the certificate, “All tasks”>”Export”. Click on Add, type “NT Service\MSSQLSERVER” (account running sql server), then OK, Select MSSQLServer and click OK again. 
Right click on it, then select “All tasks”>”Manage private keys”.
Open the personal Certificate store for the computer account and look for the certificate created.On the VM server in Azure that has your database Create a self signed certificate in powershell.There are a few steps to this which I hope I have summarised correctly below and in the correct order. I checked with the Azure Admin and they said that SSL was configured properly so we dug a bit deeper and got it to work with an encrytped connection on my Laptops Power BI Desktop connecting to a SQL Server database on a VM in Azure.
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