Become Making Tax Digital ready

Making Tax Digital requires businesses to manage their tax affairs with HMRC using compatible software.

Done before the coffee gets cold.

Making Tax Digital explained

Making Tax Digital is a government initiative to improve tax administration. Ensure you meet HMRC requirements.

From April 2022, MTD requirements extend to smaller VAT businesses. Around 1.1m businesses will be affected.

MTD for VAT is currently mandatory for VAT-registered businesses with a taxable turnover above £85,000.

Businesses need to use compatible, HMRC-recognised MTD software to keep digital records and file VAT returns.

Through MTD, VAT-registered businesses will be required by law to maintain their digital records.

Prepare your practice and clients for Making Tax Digital requirements. Explore our helpful guides and toolkits.

Xero is an all-in-one platform to simplify your business tasks. Track cash flow, invoice instantly, and file digital tax returns.

: Xero’s Making Tax Digital software works for VAT and non-MTD VAT returns. Once you sign up for MTD, you can only submit MTD VAT returns. All VAT-registered businesses will need to use MTD VAT returns from April 2022 (unless you have an exemption).
See how to set up MTD for VAT in Xero
: If you use spreadsheets for VAT, you can still connect to HMRC’s MTD system via Xero. Xero provides bridging software that lets you upload VAT amounts, then send MTD VAT standard rate returns from Xero.
See how to get VAT data into Xero from spreadsheets

Get started in a few steps. Any Xero plan that supports VAT, is compatible with Making Tax Digital.

You’ll receive a confirmation email, and be guided to connect HMRC digital tax with Xero.

Use the MTD VAT return, and submit it to HMRC directly from Xero.

Access all Xero features free for 30 days, then decide which plan best suits your business.

All VAT supporting Xero plans cover MTD at no extra cost. Find out more about how Xero and MTD works.

Learn more about the next phase of the MTD programme, focussed on Income Tax Self Assessment.

Easily convert to Xero from Sage and Quickbooks desktop and online products with Movemybooks.