Prepare for Making Tax Digital
Making Tax Digital requires businesses to manage their tax affairs with HMRC using compatible software.
Done before the coffee gets cold.
What is Making Tax Digital?
Making Tax Digital (MTD) is part of the Government’s plan to modernise the UK tax system, making it easier for people to get their tax right.
MTD applies to all VAT-registered businesses
All VAT-registered businesses must comply with MTD for VAT rules, unless they are exempt.
Maintaining digital records
VAT-registered businesses are required by law to maintain their digital records.
Using MTD software
Businesses need to use compatible, HMRC-recognised MTD software to keep digital records and file VAT returns.
Signing up for MTD
HMRC automatically signs up VAT-registered businesses for Making Tax Digital.
MTD for accountants and bookkeepers
Prepare your practice and clients for Making Tax Digital requirements. Explore our helpful guides and toolkits.
Learn how to become MTD compliant
Simplify your business tasks with Xero
Xero is an all-in-one platform to simplify your business tasks. Track cash flow, invoice instantly, and file digital tax returns.
Learn what Xero can do
More about Making Tax Digital for VAT
Xero’s Making Tax Digital software works for both MTD and non-MTD VAT digital services. Once you're signed up for MTD, you can only submit MTD VAT returns. All VAT-registered businesses will need to use MTD VAT returns from April 2022 (unless you have an exemption).
See how to set up MTD for VAT in XeroXero’s Making Tax Digital software works for both MTD and non-MTD VAT digital services. Once you're signed up for MTD, you can only submit MTD VAT returns. All VAT-registered businesses will need to use MTD VAT returns from April 2022 (unless you have an exemption).
See how to set up MTD for VAT in XeroIf you use spreadsheets for VAT, you can still connect to HMRC’s MTD system via Xero. Xero provides bridging software that lets you upload VAT amounts, then send MTD VAT standard rate returns from Xero.
See how to get VAT data into Xero from spreadsheetsIf you use spreadsheets for VAT, you can still connect to HMRC’s MTD system via Xero. Xero provides bridging software that lets you upload VAT amounts, then send MTD VAT standard rate returns from Xero.
See how to get VAT data into Xero from spreadsheetsMTD for Income Tax will apply from April 2026. Businesses, self-employed individuals, and landlords with income over £50,000 mandated to join first. Those with income over £30,000 will be mandated from April 2027.
Learn more about MTD for Income TaxMTD for Income Tax will apply from April 2026. Businesses, self-employed individuals, and landlords with income over £50,000 mandated to join first. Those with income over £30,000 will be mandated from April 2027.
Learn more about MTD for Income TaxFrom April 2022, all VAT-registered businesses will need to follow Making Tax Digital (MTD) rules. Here's all the key information you need to know, including answers to common questions about MTD for VAT.
Learn more about MTD for VATFrom April 2022, all VAT-registered businesses will need to follow Making Tax Digital (MTD) rules. Here's all the key information you need to know, including answers to common questions about MTD for VAT.
Learn more about MTD for VATAll VAT registered businesses must follow MTD rules from April 2022. That includes sole traders, limited companies, partnerships, charitable trusts, and landlords with at least one UK property. Here's everything you need to know about MTD for VAT as a business owner.
Learn more about MTD for businessesAll VAT registered businesses must follow MTD rules from April 2022. That includes sole traders, limited companies, partnerships, charitable trusts, and landlords with at least one UK property. Here's everything you need to know about MTD for VAT as a business owner.
Learn more about MTD for businessesWe answer common questions about how accountants can prepare their clients and practice for MTD, including setting up your accounting practice for MTD and how to support clients who want to continue using spreadsheets.
Learn more about MTD for accountantsWe answer common questions about how accountants can prepare their clients and practice for MTD, including setting up your accounting practice for MTD and how to support clients who want to continue using spreadsheets.
Learn more about MTD for accountants
Set up for MTD with Xero
Get started in a few steps. Any Xero plan that supports VAT is compatible with Making Tax Digital.
Check you're signed up for MTD for VAT
If you’re VAT registered, you’ll automatically be signed up for MTD for VAT.
Connect Xero to HMRC
HMRC will email to confirm you’re signed up to MTD for VAT. You can then connect HMRC digital tax with Xero.
Use the correct VAT filing
Use the MTD VAT return, and submit it to HMRC directly from Xero.
Use Xero for MTD
Access all Xero features free for 30 days, then decide which plan best suits your business.
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.