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.


Let Xero do the heavy lifting for you

Get your books done faster

Xero can automatically handle tasks that used to take up all of your time. From importing bank transactions to sending invoice reminders, we’ll do the work for you.

Feel confident in your numbers

With all your data stored safely and in one place, it’s easy to get a snapshot of how your business is tracking. You can also invite your accountant or bookkeeper into Xero so they’ll ensure you meet all your tax obligations.

Add more to your software

Look after your staff with Xero Payroll and drive profitability on your projects with Xero Projects. It’s fully integrated with Xero so you can keep all your business information in one handy place.

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cloud accounting dashboard
xero cloud accounting mobile app

Do business from anywhere, on any device

It’s easy to access all your data and Xero tools from anywhere – just connect to the internet. Plus, keep all your essentials like invoicing and payroll at your fingertips with Xero’s mobile app.

Working with your accountant

Start a trial and invite your accountant as an advisor or speak to them about using Xero. If they’re already a Xero partner, they can help you get up to speed even faster.

Get set up in no time

Sign up for a free trial and our friendly small business specialists will help you get set up via phone or email – they’re always on hand to provide expert advice.


Join our 60-min webinar for help setting up

In just 30 minutes, you’ll learn some of the powerful features in Xero, such as bank reconciliation and dashboard. We’ll also customise some of the features to suit your business and answer any questions you might have.

Register here

Pricing plans

Get 3 months of Xero Expenses and Xero Payroll free with any business plan. 

Our plans have no setup fees or contracts, and you pay monthly.


£ 99 GBP / Month


£ 99 GBP / Month

Start your 30-day free trial

Xero makes running your small business beautiful. Whether you’ve been in business for years or you’re just starting out, the best way to understand the benefits is to try Xero for yourself. There’s no commitment and no payment card is needed for your trial.

Try Xero for free
online accounting software on laptop and mobile