Making Tax Digital for VAT explained
Our FAQs explore what MTD for VAT means for business owners.
From April 2022, all VAT-registered businesses must follow Making Tax Digital (MTD) rules.
From April 2022, HMRC requires all VAT registered businesses to follow Making Tax Digital rules.
We’ve compiled a helpful list of common Making Tax Digital buzzwords to help you navigate the world of digital tax.
A closer look at MTD for small businesses
Explore our small business guides to Making Tax Digital.
Our comprehensive guide covers everything you need to know about Making Tax Digital (MTD) for VAT as a small business owner.
Digital links play a vital role in connecting software packages and submitting MTD-compliant VAT returns to HMRC.
HMRC’s new Making Tax Digital (MTD) penalty system will target taxpayers who make consistent errors with their returns.
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.
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.
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 2024. 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
HMRC’s VAT online portal closure
HMRC closes its VAT online portal on 1 November, meaning businesses will no longer be able to use the portal to file VAT returns.Learn more about the VAT portal closure
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
Get your business ready for MTD for VAT
Complete all three of our MTD for VAT webinars to set up your business on Xero and experience the benefits of digital workflows.Register for our VAT webinars
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 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.Learn more
No, 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 more
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.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 2024.Learn more