Home / Questions / What Is Making Tax Digital for VAT?
Last updated 23 October 2026. Written by the Limited Company Accountant UK team, part of Accotax. Figures are for the 2026/27 tax year; always check GOV.UK for the latest rates.
Short answer: Making Tax Digital for VAT means VAT-registered businesses must keep digital records and file VAT returns through compatible software instead of the old online form.
At a glance
| Applies to | All VAT-registered businesses |
|---|---|
| Software | Xero, QuickBooks, FreeAgent and others |
What changes
Records must be digital and returns filed straight from software, with digital links between systems.
Getting ready
Pick compatible software and sign up to MTD with HMRC.
Want this handled for you?
Fixed monthly fee, named accountant, free first consultation. Get a free quote or call 0203 4411 258.
The bottom line
Making Tax Digital for VAT means VAT-registered businesses must keep digital records and file VAT returns through compatible software instead of the old online form. If you would rather not do it alone, our fixed fees start at £45.83 + VAT a month.
Frequently asked questions
Do I need new software?
If your current tool is not MTD-compatible, yes.
Does MTD apply to Income Tax too?
Separately, for self-employed and landlords above thresholds. It does not apply to company profits.
Ready for a fixed monthly price?
Our packages start at £45.83 + VAT and cover accounts, tax and deadlines. Get a free quote or call 0203 4411 258.
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