What Making Tax Digital actually requires
Making Tax Digital (MTD) requires VAT-registered businesses above the relevant threshold to keep digital records and submit VAT returns using compatible software, rather than typing figures directly into HMRC's website.
Digital records, not just digital submission
The requirement isn't only about how you submit. It's about how you keep records throughout the year. Transactions need to be recorded digitally, and any transfer of data between systems needs to happen digitally too, without manual re-typing.
Choosing compatible software
Most modern cloud accounting platforms are MTD-compatible, but it's worth checking before you commit, particularly if you're using older desktop software or spreadsheets.
What this means in practice
For most businesses already using cloud accounting software, the change is straightforward. If you're still working from spreadsheets or paper records, this is a good prompt to move to a compatible system before a deadline forces the decision.
We can help you get compliant
We can review your current setup, confirm whether MTD applies to you yet, and help you move to compliant software with minimal disruption.
