Making Tax Digital

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Tax affairs management is changing for the UK's businesses, accountants and bookkeepers. Learn why digital tax management is becoming mandatory and make it work for you before the deadline

What is Making Tax Digital?

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

Making Tax Digital for business (MTDfb) begins on 1 April 2019 with MTD for VAT. From that date, VAT-registered businesses above the threshold of £85k will have to keep digital records and submit VAT returns using compatible software. HMRC lists Xero as software that will be compatible with MTD for VAT.

Other components of Making Tax Digital, such as income tax and corporation tax, have been placed on hold until April 2020 at the earliest. Check this resource hub for updates on the latest developments, straight from HMRC.

making tax digital hmrc
Effective

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

accurate quarterly tax summaries to HMRC
Efficient

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

digital vat returns
Easier

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

When does it all happen?

making tax digital timeline

Find out what Making Tax Digital means for you

How do I prepare for MTD?

Accountants and bookkeepers

Get all you need to prepare your practice for Making Tax Digital today.

Advisor resources
Small businesses

Find out how to make managing VAT quick and easy, starting now.

Business resources

Top tips and best reads

Learn more about how to prepare for online filing for small businesses or accountants and bookkeepers.

five steps
MTD for VAT in five easy steps

Check out our five easy steps to helping your clients get ready for MTD for VAT.

Read guide

education
MTD Learning Journey

Get up to speed on MTD and earn the new MTD Ready badge giving your clients peace of mind.

Read more

toolkit
MTD Communications Toolkit

Get your practice and clients ready for MTD with our communications toolkit. 

Download toolkit

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