Making Tax Digital


Making Tax Digital is changing the way UK businesses, accountants and bookkeepers do their taxes. Find out what this means for you and learn how Xero can help you become compliant.

What is Making Tax Digital?

Making Tax Digital (MTD) for VAT makes it mandatory for VAT-registered businesses above the £85k threshold to keep records and submit VAT returns digitally using compatible software. HMRC lists Xero as software that is compatible with MTD for VAT.

MTD is an HMRC initiative designed to make sure the UK tax system is effective, efficient and easier for taxpayers.

making tax digital hmrc

Tax recording will be more accurate, providing fewer opportunities for errors, miscalculations and fraudulent activity.

accurate quarterly tax summaries to HMRC

The process will be faster and more automated for businesses, accountants and HMRC, helping them save valuable time.

digital vat returns

With the right software, Making Tax Digital will make it easier for small businesses to record and file their tax returns online.

Xero’s Making Tax Digital for VAT solution is live

It’s available in all Xero plans that support VAT at no extra cost.

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Everything you need for Making Tax Digital

Get your practice and your clients ready for MTD today.

Partner resources

Find out how to make managing VAT quick and easy.

Business resources

News and resources

Tips and updates to help you with Making Tax Digital.

Xero's MTD for VAT solution is live

The solution helps ensure eligible businesses are fully compliant with the HMRC rule.

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Frequently asked questions

Our FAQs tackle all your scary questions about Making Tax Digital for VAT.

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Need to move to MTD compatible software?

Easily convert clients data to Xero from select Sage and Quickbooks desktop and online products. It's free with Movemybooks.

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Stay ahead with our MTD Webinars

Webinars for Businesses

Join our live webinars to get up to speed with Xero and find out how to get ready for Making Tax Digital.

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Webinars for Accountants and Bookkeepers

Hear from our MTD product experts who will walk you through our new VAT process.

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What’s Xero’s role in MTD?

Preparing for digital tax starts with managing business accounts online – it makes the transition smoother and business more efficient.

Xero is Britain’s leading online accounting software, and over 1 million subscribers around the world use Xero save time and get paid faster.

Having consulted with HMRC on Making Tax Digital, Xero is committed to supporting small businesses and their advisors through the transition.

Learn more about Xero
digital tax