GlossaryUK
What is Making Tax Digital?
HMRC rules for digital VAT records and returns
Short answer
Making Tax Digital (MTD) is HMRC’s set of rules requiring VAT-registered businesses to keep some VAT records digitally and file VAT returns with compatible software that connects to HMRC’s systems.
Explained
All VAT-registered businesses are now signed up for Making Tax Digital for VAT and do not need to sign up themselves. Unless exempt, they keep some VAT records digitally, in an electronic account.
If more than one piece of software is used, data must be digitally linked between them; it cannot be copied and pasted by hand. VAT records are kept for at least 6 years.
Good to know
- Compatible software can be accounting software or spreadsheets that connect to HMRC systems.
- This page covers the Making Tax Digital rules for VAT.
This page is general information, not legal or tax advice. Rules change; check the official source for the latest position or talk to us.
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