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

  • Making Tax Digital for VAT: FAQs

    We answer your questions about MTD for VAT, from the impact of Brexit on MTD to the importance of choosing the right software.

    MTD for VAT FAQs
  • What does MTD mean for business owners?

    We explore what MTD means for business owners, including the practicalities of digital record keeping and how to file an MTD for VAT return.

    Making Tax Digital for businesses
  • Making Tax Digital ‘Jargon Buster’

    We’ve compiled a helpful list of common Making Tax Digital buzzwords to help you understand MTD and navigate the world of digital tax.

    MTD jargon buster

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
How to sign up to Making Tax Digital

A Closer Look at MTD for Small Businesses

  • Small business guide to Making Tax Digital

    Our comprehensive guide covers topics such as MTD requirements, exemptions, penalties, and finding MTD compatible software.

    Read our small business guide to MTD
  • ‘Digital links' play a vital role in submitting MTD-compliant VAT returns to HMRC. Our guide explores what this means in practical terms.

    Read our guide to MTD 'digital links'
  • A guide to Making Tax Digital penalties

    You may be wondering how HMRC’s new Making Tax Digital penalty system works. Here’s a quick exploration of MTD penalties.

    Read our guide to MTD penalties

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
Making Tax Digital Video Series

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.

View MTD for VAT at a glance

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.

View MTD deadlines

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.

View MTD ‘cheat sheet’

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

Ralph Cochrane, Founder of Creative Grid

Making Tax Digital by Industry

  • Making Tax Digital for trade & construction

    This short guide will introduce 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
Using Xero for Making Tax Digital

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.

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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.

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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.

Learn more

Start using Xero for free

Access all Xero features for 30 days, then decide which plan best suits your business.

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