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.

A tablet showing that a return has been submitted to the tax office.

What Making Tax Digital is

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

April 2022 extension

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

Based on taxable turnover

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

MTD software needed

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

Maintain digital records

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

MTD for accountants and bookkeepers

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

Learn how to become MTD compliant

Simplify your business tasks with Xero

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

Learn what Xero can do

More about Making Tax Digital for VAT

Xero’s Making Tax Digital software works for both MTD and non-MTD VAT digital services. Once you're signed 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

MTD for ITSA will apply from April 2026. Businesses, self-employed individuals, and landlords with income over £50,000 mandated to join first. Those with income over £30,000 will be mandated from April 2027.

Learn more about MTD for ITSA

From April 2022, all VAT-registered businesses will need to follow Making Tax Digital (MTD) rules. Here's all the key information you need to know, including answers to common questions about MTD for VAT.

Learn more about MTD for VAT

All VAT registered businesses must register for MTD from April 2022. That includes sole traders, limited companies, partnerships, charitable trusts, and landlords with at least one UK property. Here's everything you need to know about MTD for VAT as a business owner.

Learn more about MTD for businesses

We answer common questions about how accountants can prepare their clients and practice for MTD, including setting up your accounting practice for MTD and how to support clients who want to continue using spreadsheets.

Learn more about MTD for accountants

Set up for MTD with Xero

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

Check you're signed up for MTD for VAT

If you’re VAT registered, you’ll automatically be signed up for MTD for VAT.

Connect Xero to HMRC

HMRC will email to confirm you’re signed up to MTD for VAT. You can then connect HMRC digital tax with Xero.

Use the correct VAT filing

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

Use Xero for MTD

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

Explore more MTD news and resources

Making Tax Digital for VAT

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

More about MTD for VAT

Making Tax Digital software

Learn more about why you need Making Tax Digital software that’s 100% HMRC compliant.

More about MTD software

Making Tax Digital resources

Explore our MTD webinars, guides, articles, and FAQs for everything you need to know about MTD for VAT.

MTD resources