What is Making Tax Digital?
Making Tax Digital for VAT makes it mandatory for VAT-registered businesses above the £85k threshold to keep records and submit VAT returns digitally using HMRC-recognised software like Xero. It will become mandatory for all VAT registered businesses from April 2022.
Become compliant with Xero’s Making Tax Digital for VAT software
Xero’s Making Tax Digital software gives you and your clients greater control and visibility of your VAT with the assurance of being compliant and connected in real-time to HMRC.
Know which VAT returns are due
View history and notes
Post VAT returns in real time
Drill down to transaction details
View and adjust VAT returns
Deploy faster using Xero’s bridging software
Handle spreadsheets with Xero’s bridging software
For clients using spreadsheets, or with complex VAT requirements, there’s no need to change systems. All that’s needed to comply with HMRC is Xero’s Making Tax Digital for VAT bridging software – available in all Xero plans that support VAT.
Upload your clients VAT figures directly from an Excel spreadsheet into Xero in seconds
Submit your clients VAT returns securely and in real-time to HMRC
Is Xero’s Making Tax Digital software right for your clients?
Xero is so flexible that you can choose from a range of options. See which clients Xero's Making Tax Digital software supports.
Client VAT status:
VAT threshold above £85k
VAT threshold below £85k
Cash accounting scheme
Flat rate scheme
Partial exemption (with manual calculation and adjustment)
Specialist schemes (investigate specialist needs and seek advice)
VAT group (use Xero’s bridging software)
VAT division (use Xero’s bridging software)
Using Excel (use Xero’s bridging software)
Resources to get you started today
Get the latest updates and tools to help you and your clients with Making Tax Digital
Learn about Making Tax Digital in Xero
Find out more on how to set up Making Tax Digital for VAT in Xero.
Making Tax Digital FAQs
Gain a greater understanding of Making Tax Digital for VAT and what it means for you with these FAQs – and our answers.
Move clients to Making Tax Digital software
Move clients to Xero from Sage and Quickbooks desktop and online products using Movemybooks today – it's easy and it's free.
Join the partner programme
Become a Xero partner and gain access to a dedicated account manager, educational resources and the tools to start your practice on its Making Tax Digital journey.Learn more