Xero software for Making Tax Digital

Now Making Tax Digital (MTD) for VAT is here, business owners above the VAT threshold of £85k need to file VAT returns online using HMRC-recognised MTD software. This will be extended to all VAT-registered businesses from April 2022.

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What is Making Tax Digital?

Making Tax Digital (MTD) means you are no longer able to keep and submit manual VAT records and returns. Instead, HMRC will only accept VAT returns sent using software that supports Making Tax Digital for VAT, like Xero.

The use of this technology is mandatory so it’s a good idea to upgrade your software, or migrate your accounts, before the end of your next VAT period. 

Once you're up and running, you should find it far easier to submit returns using online MTD software.

What to look for in online accounting software

makign tax digital software

Automatically calculates the tax you owe (including VAT and payroll tax).

software for making tax digital connectivity

Pulls transaction data straight from your bank, invoicing software, or POS systems.


software for digital tax

Updates transactions daily, helping you to stay on top of bank reconciliation.


Everything you need to run your business

Whether you're setting up a new business or migrating your existing business accounts, real-time updates mean no more waiting to learn the health of your finances. View and share interactive reports and budgets, all in one place on a customisable dashboard. Spend less time in spreadsheets and more time on your business.

Xero is fast, simple software that's changing the way the world does the books.

Invoicing & quotes

Create professional recurring invoices and receive updates when they’re opened

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Bank reconciliation

Connect your bank to Xero to match your bank account to your business books

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Pay your employees

Calculate the payroll, pay employees and manage payroll taxes

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See all your numbers

See how your business is performing on a user-friendly dashboard

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Make VAT digital

Manage your VAT and sent returns all in one place

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Manage bills & expenses

Capture your receipts and mileage claims so you can reimburse your staff

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Plans to suit your business

All pricing plans cover the accounting essentials, with room to grow.


Good for larger employers and more complex small businesses.



GBP per month

  • Included
    Everything from Premium
  • Included
    Payroll for up to 10 people
  • Included
    Expenses for up to 5 people
  • Included
    Projects for up to 5 people
  • Included
    Advanced insights with Analytics Plus

As soon as I got Xero our year-on-year profits have gone up, our paperwork has gone down and I would say that’s a lot to do with the accountants we use as well. It’s made a huge difference in our company.

- Hitesh Kanbi, IKPE Limited

Hitesh Kanbi

Peace of mind with free support and security monitoring - 24/7

Help is at hand

Get expert help and support whenever you need it at Xero Central. You can look up support topics and articles at any time. You can also ask questions, offer solutions, and find answers in discussions with other users, or get in touch with our friendly and knowledgeable support team members. With Xero offices and users all over the world, you’ll get a speedy response no matter where you are.

  • Stuck? Our friendly accounting specialists are here to help, around the clock.
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