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

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

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

Continuity
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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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 herePricing 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.
Starter
£ 99 99 GBP / Month
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Standard
£ 99 99 GBP / Month
Premium
£ 99 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.
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