Making Tax Digital for VAT

What is Making Tax Digital (MTD) for VAT?

Making Tax Digital (MTD) for VAT is a mandatory UK government initiative requiring VAT-registered businesses to keep digital records and submit their VAT returns using compatible accounting software. It’s designed to make tax reporting more accurate, efficient, and easier to manage.

Making Tax Digital for VAT began on 1 April 2019 for most VAT-registered businesses with taxable turnover above the VAT threshold.

It was later extended to all VAT-registered businesses (including those below the threshold) from 1 April 2022.

Cloud Accounting Team from Pierce Accountants working on a laptop

Who does MTD for VAT apply to?

All VAT-registered businesses in the UK, regardless of turnover (since April 2022), must submit VAT returns via MTD-compatible software. This applies to sole traders, partnerships, limited companies, and charities.

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