What is MTD?
MTD stands for Making Tax Digital, and it involves keeping your records in a digital format, and then submitting your quarterly returns to HMRC in digital format.
Since 1st April 2022, all VAT registered businesses must be MTD compliant and use digital software to submit their VAT returns. Until 2022, this had only been compulsory for businesses with turnovers in excess of £85,000 per annum.
The timescales and dates for filing your quarterly and annual VAT returns remain the same under the new MTD regime.
What’s the best accounting software for MTD for VAT?
There are numerous accounting packages to choose from, and many have add-ins which make them extremely flexible and customizable for your business. The ones we recommend and use on a daily basis for our clients are industry leaders in cloud accounting software and include:
- Xero
- Quickbooks
- Sage Cloud accounting
- Bridging software
But we also use others where we have been specifically asked to do so.
What should you do now?
- Ensure that your VAT return is prepared on the right software and platform.
- If you haven’t decided which accounting software to use, get in touch with us and have a chat with one of our experts. Different packages suit different people and businesses.
- Decide whether it’s still worth being VAT registered. The benefits you gained may not be worth the effort involved in going digital.
- Making Tax Digital also applies to Income Tax for eligible sole traders and landlords, subject to exemptions. It began on 6 April 2026 for those with qualifying income over £50,000, extending to over £30,000 from 6 April 2027 and over £20,000 from 6 April 2028. Qualifying income is combined gross income from self-employment and property, before expenses.
Who can help you with MTD for VAT?
We can! We can help you with:
- Choosing the best accounting software package for your business. You can even request a free demo.
- Assisting you with your VAT preparation, completion and filing within the new regime
- Oursourcing your VAT, payroll, self assessment and many other accounting tasks
- Business planning, forecasting and business growth advice.
What makes UHY Ross Brooke different?
- Our clients have access to our support team for their cloud accounting / software enquiries.
- Our team are really patient and will speak to you in a language that you can understand. But more than that, they take the worry away from you, leaving you to run your business.
If it all feels too complicated, just ask our specialists for advice. We’re happy to have an initial chat with you free of charge, so you have nothing to lose by calling us.
Preparing for April 2027? Speak to our team about your start date, software and quarterly reporting