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Read article : Why move your bookkeeping to the cloud?Making Tax Digital (MTD) changed how VAT records are kept and returns are filed in the UK. A short guide to staying compliant.
Making Tax Digital (MTD) is HMRC’s programme to move tax records and returns online. For VAT it means keeping digital records and filing returns through MTD-compatible software.
Who has to follow MTD for VAT?
MTD for VAT started in April 2019 for businesses with taxable turnover above the VAT threshold, and since April 2022 it applies to all VAT-registered businesses.
What does it mean in practice?
- VAT records must be kept digitally
- Returns must be submitted with MTD-compatible software (e.g. Xero, QuickBooks, Sage, FreeAgent)
- Spreadsheets can still be used with bridging software
How we help
Our team prepares VAT calculations, checks that output VAT is declared and input VAT claimed correctly, and files the return in MTD-compliant software – with a clear calculation sheet for your records.
See our VAT return service for details.