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.

A closer look at MTD for small businesses

Explore our small business guides to Making Tax Digital.

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
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 legislation.

Watch the full playlist
Making Tax Digital Video Series

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

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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 construction
  • Making 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 retail
  • Making 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 hospitality
  • Making 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

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 webinar
  • The 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 to keep their records digitally and submit their VAT Returns to HMRC using MTD software, such as Xero.

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MTD for VAT requires all VAT-registered businesses to keep their records digitally and submit their VAT Returns to HMRC using MTD software, such as Xero.

Learn more

You 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.

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You 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 more

If you are not yet VAT registered, you must first register for VAT through your Government Gateway account to receive your VAT registration number. You will then automatically be signed up to MTD for VAT.

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If you are not yet VAT registered, you must first register for VAT through your Government Gateway account to receive your VAT registration number. You will then automatically be signed up to MTD for VAT.

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The 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.

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The 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 more

All Xero subscriptions currently supporting the submission of a VAT Return will support MTD for VAT – and at no extra cost.

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All Xero subscriptions currently supporting the submission of a VAT Return will support MTD for VAT – and at no extra cost.

Learn more

The 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

The 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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