Accounting software for Making Tax Digital
Making Tax Digital for VAT is here and business owners need to file VAT returns online using HMRC-recognised software.
Automatically calculates the tax you owe (including VAT and payroll tax).
Pulls transaction data straight from your bank, invoicing software, or POS systems.
Updates transactions daily, helping you to stay on top of bank reconciliation.
What is Making Tax Digital?
Making Tax Digital is a government initiative to improve tax administration. Ensure you meet HMRC requirements.
Why you need Making Tax Digital software
All VAT-registered businesses must keep digital records & submit VAT returns using MTD software, like Xero.
Choosing HMRC-recognised MTD software
It’s important to choose software that’s 100% HMRC-recognised, MTD-compliant and easy to use, like Xero.
Benefits of Making Tax Digital software
MTD software can provide additional benefits. For example, Xero automatically records VAT collected and paid.
MTD bridging software explained
MTD bridging software is designed for those who want to keep using spreadsheets instead of full MTD software.
Automate everyday business tasks
Get a real-time view of your financial dashboard from your laptop or mobile.
- HMRC recognised
- Making Tax Digital ready
Run your business on the go
Use our mobile app to reconcile, send invoices, create expense claims and view reports – from anywhere.
Get paid faster
Xero cloud accounting allows you to send online invoices to your customers – and get updated when they’re opened.
Reconcile in seconds
Xero imports and categorises your latest bank transactions allowing you to make the best use of your time. Just click OK to reconcile.
Everything you need to run your business
Xero calculates VAT and files VAT returns online securely with HMRC using software that’s compatible with HMRC systems.
Sign up to Xero Payroll and get 2 months free.*
Work smarter with intuitive invoicing software. Send online invoices from the desktop or app as soon as the job is done.
Keep your account balances and financials up to date. Easily confirm that the transactions in your bank accounts are recorded in your business financial records with Xero’s bank reconciliation software.
Track and pay bills on time. And get a clear overview of accounts payable and cash flow.
Capture expense claims, track and manage your employee spend easily, with expense manager tools.
Peace of mind with free support and security
Help is at hand for your business
- Xero provides free and unlimited customer support, 24 hours a day, 7 days a week, as part of your Xero subscription.
- Switching your existing accounts data to Xero is simple. You can even convert up to 24 months of your accounts for free - a saving of £180.
- With more app integrations than any other online accounting platform, Xero lets you integrate your accounts with over 800+ third party solutions.
- Xero runs daily online backups of your business information. Your data is encrypted, safe, and secure, giving you ultimate peace of mind.
- Run your business effortlessly using the Xero app for iOS and Android. Create invoices, manage cash flow, and snap expenses on the go.
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.
Your questions answered
MTD for VAT is legislation that requires all VAT registered businesses with a taxable turnover above the £85k threshold to keep their records digitally and submit their VAT Returns using MTD compatible software, such as Xero.
From April 2022 all VAT-registered businesses will have to comply with Making Tax Digital for VAT. Our HMRC recognised software for small businesses helps you do it with confidence.
If you use spreadsheets for VAT, you can still connect to HMRC’s MTD system via Xero. You can use Xero as bridging software that lets you upload VAT amounts, then send MTD VAT standard rate returns from Xero.
Yes, Xero offers a 30 day free trial. You just need to provide your name, email address and a phone number — no payment details are taken.
Yes. You can try features like Making Tax Digital for VAT, Xero Payroll, Xero Expenses and Xero Projects. This lets you experience all of Xero's powerful features while ensuring you get comfortable with the product before you buy.
No, you just need to provide your name, email address and a phone number. We ask for a phone number so that we can get in touch with you directly to help you get started on Xero. If you choose to continue using Xero after your trial, you will be asked to add your billing information and will be billed monthly from that point. If you choose not to continue using Xero, you may delete your organisation in the 'My Xero' section when you login.
Yes, you can try features like Xero Payroll, Xero Expenses and Xero Projects. This lets you experience all of Xero's powerful features while ensuring you get comfortable with the product before you buy. If your bank charges a fee to connect a bank feed to Xero, then you won’t be able to connect the bank feed while you are in your trial.
Explore more MTD news and resources
Making Tax Digital for VAT
All VAT supporting Xero plans cover MTD at no extra cost. Find out more about how Xero and MTD works.
Making Tax Digital software
Learn more about why you need Making Tax Digital software that’s 100% HMRC compliant.
Making Tax Digital resources
Explore our MTD webinars, guides, articles, and FAQs for everything you need to know about MTD for VAT.