Making Tax Digital for small businesses
Explore our small business guides, articles and webinars covering everything you need to know about Making Tax Digital (MTD) for VAT.
Making Tax Digital for VAT explained
Our FAQs explore what MTD for VAT means for business owners.
MTD for VAT: What is Making Tax Digital?
From April 2022, all VAT-registered businesses must follow Making Tax Digital (MTD) rules.
What does Making Tax Digital mean for businesses?
From April 2022, HMRC requires all VAT registered businesses to follow Making Tax Digital rules.
Making Tax Digital jargon buster
We’ve compiled a helpful list of common Making Tax Digital buzzwords to help you navigate the world of digital tax.
How to sign up to Making Tax Digital
This short guide will cover everything you need to know about registering for Making Tax Digital.
How to sign up to Making Tax Digital
A closer look at MTD for small businesses
Explore our small business guides to Making Tax Digital.
Making Tax Digital for small businesses
Our comprehensive guide covers everything you need to know about Making Tax Digital (MTD) for VAT as a small business owner.
Digital links for Making Tax Digital
Digital links play a vital role in connecting software packages and submitting MTD-compliant VAT returns to HMRC.
Making Tax Digital penalties
HMRC’s new Making Tax Digital (MTD) penalty system will target taxpayers who make consistent errors with their returns.
Getting started with digital record keeping for MTD
We explore digital record keeping rules so you can make sure you’re fully compliant with MTD.
A guide to digital record keeping for MTD
Making Tax Digital video series
Our MTD for VAT video series includes answers to your most common questions on how to comply with the new legislation.
Watch the full playlist
A quick look at Making Tax Digital
These infographics have been designed to help you understand MTD in practical terms, covering deadlines, compliance, and how to prepare.
Making Tax Digital for VAT at a glance
This one-pager communicates key updates to bear in mind when preparing your business for Making Tax Digital.
Understanding MTD deadlines
Here’s a handy guide for business owners, looking at all the key dates and deadlines to bear in mind for MTD.
Making Tax Digital cheat sheet
Our MTD cheat sheet will help you understand exactly what you need to do to comply with MTD for VAT.
I’m able to quote for new opportunities, invoice clients and ensure I’ve paid my taxes seamlessly whilst staying compliant with the government's Making Tax Digital rules.
Ralph Cochrane, founder of Creative Grid
Making Tax Digital by industry
Making Tax Digital for trade & construction
This short guide introduces those in the construction and trade industries to MTD, DRC and CIS, with tips on how to comply.
Read our guide to MTD for constructionMaking Tax Digital for retail and ecommerce
Our guide explores how Making Tax Digital impacts business owners in the retail and ecommerce industries.
Read our guide to MTD for retailMaking Tax Digital for hospitality
Our guide explores what Making Tax Digital means for hospitality business owners in practical terms.
Read our guide to MTD for hospitalityMaking Tax Digital for landlords
MTD for ITSA will impact landlords from April 2026. This guide looks at what the legislation means and how to comply.
Read our guide to MTD for landlords
Using Xero for Making Tax Digital
Xero is MTD compliant, HMRC-recognised, and comes with additional features to make running your business and managing your finances a dream.
Learn more about using Xero for MTD
Making Tax Digital webinars
Making Tax Digital for VAT made easy with Xero
Our webinar explores what MTD for VAT means for you and how you can use Xero software to submit your VAT returns.
Watch our on-demand webinarThe basics of using Xero for business
Join our weekly webinar to learn more about the key features of Xero accounting software, including how to file an MTD VAT return with HMRC.
Register for our basics webinar
Your Making Tax Digital questions answered
MTD for VAT requires all VAT-registered businesses with a taxable turnover above £85k to keep their records digitally and submit their VAT Returns to HMRC using MTD software, such as Xero. From April 2022, all VAT-registered businesses must follow MTD rules, regardless of turnover.
Learn moreMTD for VAT requires all VAT-registered businesses with a taxable turnover above £85k to keep their records digitally and submit their VAT Returns to HMRC using MTD software, such as Xero. From April 2022, all VAT-registered businesses must follow MTD rules, regardless of turnover.
Learn moreYou must use HMRC-recognised MTD software to keep and preserve digital records. The software must also allow you to submit a VAT return, supply HMRC with VAT data, and receive information from HMRC via an API.
Learn moreYou must use HMRC-recognised MTD software to keep and preserve digital records. The software must also allow you to submit a VAT return, supply HMRC with VAT data, and receive information from HMRC via an API.
Learn moreNo, you won’t be automatically signed up to MTD for VAT. This is because HMRC needs to verify your information and migrate your record to their MTD system. You’ll need to sign up your business with HMRC using your existing Government Gateway Login and VAT Number. Once you’ve authorised Xero to connect with HMRC, you’ll be able to submit MTD VAT Returns directly from your Xero account.
Learn moreNo, you won’t be automatically signed up to MTD for VAT. This is because HMRC needs to verify your information and migrate your record to their MTD system. You’ll need to sign up your business with HMRC using your existing Government Gateway Login and VAT Number. Once you’ve authorised Xero to connect with HMRC, you’ll be able to submit MTD VAT Returns directly from your Xero account.
Learn moreThe same information as before – the standard nine box values, plus details identifying your business. Additional information might be required in the future, but the details and timings haven’t been specified.
Learn moreThe same information as before – the standard nine box values, plus details identifying your business. Additional information might be required in the future, but the details and timings haven’t been specified.
Learn moreAll Xero subscriptions currently supporting the submission of a VAT Return will support MTD for VAT – and at no extra cost.
Learn moreAll Xero subscriptions currently supporting the submission of a VAT Return will support MTD for VAT – and at no extra cost.
Learn moreThe next stage is Making Tax Digital for Income Tax Self Assessment (MTD for ITSA), which will affect sole traders and landlords from April 2026.
Learn moreThe next stage is Making Tax Digital for Income Tax Self Assessment (MTD for ITSA), which will affect sole traders and landlords from April 2026.
Learn more
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