Why you need Making Tax Digital software
From April 2022 all VAT-registered businesses will need to keep digital records and submit VAT returns using HMRC-recognised MTD software, like Xero.
Choosing HMRC-recognised MTD software
It’s important to choose Making Tax Digital software that’s 100% HMRC compliant. Xero’s digital VAT software is MTD compliant, HMRC-recognised, and easy to use.
Benefits of Making Tax Digital software
Using MTD software means saying goodbye to manual entry and complicated calculations. Xero, for example, automatically records VAT collected and paid, so you can spend less time on your VAT return.
MTD bridging software explained
MTD bridging software must have a connection with HMRC and allow you to submit VAT online. It’s designed for businesses who want to continue using spreadsheets instead of moving to full MTD software.
More about Making Tax Digital
MTD software will be needed for Income Tax Self Assessment returns from April 2024. Learn more about MTD for ITSA and discover how Xero can support your business with the transition.Learn more
MTD software will be required for Corporation Tax in the future. This means companies will have to keep digital records for all transactions under assigned categories.Find out more
Businesses will be required to have digital links between software programs for data that forms part of their MTD VAT return. A digital link is an electronic or digital transfer, or exchanging of data, between software programs.Find out more
All VAT-registered businesses have a legal obligation to keep and maintain records. Making Tax Digital means that some of these must be kept digitally using HMRC-recognised MTD software.Find out more
There are some exemptions from Making Tax Digital, such as if you or your business are subject to an insolvency procedure or factors such as age, disability or location. You can find out more via the link below.Find out more
Functional and compatible software must be used by businesses to comply with MTD. This could be a software, product, or application that can preserve and hold digital records along with providing and receiving information from HMRC through an API.Find out more