{"id":10209,"date":"2026-07-30T16:58:15","date_gmt":"2026-07-30T15:58:15","guid":{"rendered":"https:\/\/www.sage.com\/en-gb\/blog\/?p=10209"},"modified":"2026-07-30T16:58:38","modified_gmt":"2026-07-30T15:58:38","slug":"mtd-for-vat-questions-answered","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-gb\/blog\/mtd-for-vat-questions-answered\/","title":{"rendered":"Making Tax Digital for VAT: 19 key questions answered\u00a0"},"content":{"rendered":"<header class=\"entry-header has-dark-background-color entry-header--standard entry-header--has-illustration entry-header--has-illustration--standard\">\n\t<div class=\"container\">\n\t\t<div class=\"entry-header__row row align-center\">\n\t\t\t<div class=\"col col-lg-7 col-xlg-6 entry-header__content\">\n\t\t\t\t\t\t\t<div class=\"component component-single-header\">\n\t\t\t\t\t\t\t\t\t\t<div class=\"entry-header__misc text--subtitle text--uppercase text--small\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/category\/money-matters\/\" class=\"entry-header__link\">Money Matters<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t<div class=\"entry-title-wrapper\">\n\t\t\t\t\t<h1 class=\"entry-title\">\n\t\t\t\t\t\tMaking Tax Digital for VAT: 19 key questions answered \t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t<p class=\"entry-header__description\">\n\t\t\t\t\t\tLooking for clear answers on Making Tax Digital for VAT? This guide explains what MTD for VAT means, who it applies to, what records you need to keep, how to submit returns, and what to do if you need help filing. \t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n\t\t<div class=\"single-post-details container\">\n\t\t<div class=\"col\">\n\t\t\t<span class=\"posted-on \">Published <time class=\"entry-date published\" datetime=\"2026-07-30T16:58:15+01:00\">30 July, 2026<\/time><\/span><span class=\"reading-time\"> min read<\/span>\n\t\t<button\n\t\t\ttype=\"button\"\n\t\t\tclass=\"social-share-button button button--icon button--secondary js-social-share-button\"\n\t\t\tdata-share-title=\"Making Tax Digital for VAT: 19 key questions answered\u00a0\"\n\t\t\tdata-share-url=\"https:\/\/www.sage.com\/en-gb\/blog\/mtd-for-vat-questions-answered\/\"\n\t\t\tdata-share-text=\"Please read this interesting article\"\n\t\t>\n\t\t\t<span class=\"social-share-button__share-label\">Share<\/span>\n\t\t\t<span class=\"social-share-button__copy-label\" hidden>Copy Link<\/span>\n\t\t\t<span class=\"social-share-button__copy-tooltip\" aria-hidden=\"true\" hidden>Copied<\/span>\n\t\t<\/button>\n\n\t\t\t\t<\/div>\n\t<\/div>\n\t<\/header>\n\n\n\n<div class=\"wp-block-post-author has-dark-background-color alignfull\">\n\t<div class=\"container\">\n\t\t<div class=\"col\">\n\t\t\t\t\t\t\t<div class=\"co-authors\">\n\t\t\t\t\t\n\t\t<div class=\"entry-author-wrapper\">\n\t\t\t<a class=\"entry-author\" href=\"https:\/\/www.sage.com\/en-gb\/blog\/author\/asavinwattanajantra\/\">\n\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"40\" height=\"40\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2026\/03\/Asavin-350x350.jpg\" class=\"entry-author__image\" alt=\"Asavin\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2026\/03\/Asavin-350x350.jpg 350w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2026\/03\/Asavin-768x768.jpg 768w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2026\/03\/Asavin-810x810.jpg 810w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2026\/03\/Asavin.jpg 1000w\" sizes=\"auto, (max-width: 40px) 100vw, 40px\" \/>\t\t\t\t<span class=\"entry-author__name\">Asavin Wattanajantra<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<div class=\"video-container-wrap -mode-full\"><div class=\"video-container\"><video\n\t\t\t\tclass=\"sage-video video-js vjs-default-skin \"\n\t\t\t\twidth=\"640\"\n\t\t\t\theight=\"360\"\n\t\t\t\tdata-setup='{ \"controls\": true, \"aspectRatio\" : \"16:9\", \"poster\": \"https:\/\/img.youtube.com\/vi\/l9Ckt_Gn714\/maxresdefault.jpg\", \"techOrder\": [\"youtube\"], \"enablejsapi\": 1, \"origin\": \"https:\/\/www.sage.com\", \"sources\": [{ \"type\": \"video\/youtube\", \"src\": \"https:\/\/www.youtube.com\/watch?v=l9Ckt_Gn714\"}], \"youtube\": { \"ytControls\": 0, \"cc_load_policy\": 3, \"modestbranding\": 1, \"hl\": \"en_GB\", \"playsinline\": 1 } }'\n\t\t\t\tcrossorigin=\"\"><\/video><\/div><\/div>\n<\/div><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.sage.com\/en-gb\/blog\/glossary\/what-is-mtd-for-vat\" target=\"_blank\" rel=\"noreferrer noopener\">Making Tax Digital for VAT<\/a>&nbsp;is HMRC&#8217;s system for requiring VAT-registered businesses to keep VAT&nbsp;records digitally and&nbsp;submit&nbsp;VAT Returns using compatible software.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If your business is VAT-registered, MTD for VAT is likely to apply to you.\u00a0<\/p>\n\n\n\n<section class=\"wp-block-sage-container is-constrained is-style-jade\"><div class=\"sage-container__inner\">\n<h3 class=\"wp-block-heading\"><strong>Key takeaways<\/strong>&nbsp;<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Making Tax Digital (MTD) for VAT is mandatory for all VAT-registered businesses unless HMRC has granted an exemption.\u00a0\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>You must keep VAT records digitally and\u00a0submit\u00a0VAT Returns using MTD-compatible software.\u00a0\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Understanding the rules,\u00a0deadlines\u00a0and digital record-keeping requirements can help you stay compliant and avoid penalties.\u00a0\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>This guide answers 19\u00a0common questions\u00a0about MTD for VAT, from exemptions and digital records to filing returns and meeting HMRC requirements.\u00a0<\/li>\n<\/ul>\n<\/div><\/section>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"#gate-7d156956-5d50-4831-b17a-2a8df0b4167b\">Download your free (and easily printable) Making Tax Digital checklist and follow the steps to help you with your VAT Return processes<\/a><\/div>\n<\/div>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Here&#8217;s what we&#8217;ll cover:<\/strong><\/p>\n\n\n<?xml encoding=\"utf-8\" ?><div class=\"wp-block-yoast-seo-table-of-contents yoast-table-of-contents\"><ul><li><a href=\"#what-anchor-link\" data-level=\"2\">1. What is Making Tax Digital for VAT?<\/a><\/li><li><a href=\"#when-anchor-link\" data-level=\"2\">2. When will the scope of MTD for VAT expand?<\/a><\/li><li><a href=\"#is-anchor-link\" data-level=\"2\">3. Is Making Tax Digital for VAT compulsory?<\/a><\/li><li><a href=\"#making-anchor-link\" data-level=\"2\">4. Is Making Tax Digital only for VAT?<\/a><\/li><li><a href=\"#records-anchor-link\" data-level=\"2\">5. What records do businesses need to keep digitally?<\/a><\/li><li><a href=\"#who-anchor-link\" data-level=\"2\">6. Who does MTD for VAT apply to?<\/a><\/li><li><a href=\"#exempt-anchor-link\" data-level=\"2\">7. Who is exempt from MTD for VAT?<\/a><\/li><li><a href=\"#if-anchor-link\" data-level=\"2\">8. If I am exempt, how do I file my VAT Returns?<\/a><\/li><li><a href=\"#the-anchor-link\" data-level=\"2\">9. What is the timetable for MTD for VAT?<\/a><\/li><li><a href=\"#mtd-anchor-link\" data-level=\"2\">10. What is the MTD for VAT deadline?<\/a><\/li><li><a href=\"#was-anchor-link\" data-level=\"2\">11. What was the soft-landing period?<\/a><\/li><li><a href=\"#should-anchor-link\" data-level=\"2\">12. What should you do to prepare for MTD for VAT?<\/a><\/li><li><a href=\"#about-anchor-link\" data-level=\"2\">13. What about VAT special schemes?<\/a><\/li><li><a href=\"#register-anchor-link\" data-level=\"2\">14. How do I register for MTD for VAT?<\/a><\/li><li><a href=\"#information-anchor-link\" data-level=\"2\">15. What information needs to be&nbsp;submitted?<\/a><\/li><li><a href=\"#submit-anchor-link\" data-level=\"2\">16. How do I&nbsp;submit&nbsp;a MTD for VAT Return?<\/a><\/li><li><a href=\"#can-anchor-link\" data-level=\"2\">17. Who can file the MTD for VAT Return?<\/a><\/li><li><a href=\"#file-anchor-link\" data-level=\"2\">18. How do I file my VAT Return once I am in MTD for VAT?<\/a><\/li><li><a href=\"#happens-anchor-link\" data-level=\"2\">19. What happens if I cannot file my VAT Return once registered?<\/a><\/li><li><a href=\"#need-anchor-link\" data-level=\"2\">What this means for your business<\/a><\/li><li><a href=\"#takeaways\" data-level=\"2\">MTD for VAT: key requirements&nbsp;at a glance<\/a><\/li><li><a href=\"#more-info\" data-level=\"2\">Need more information on&nbsp;submitting&nbsp;a MTD for VAT tax return?<\/a><\/li><li><a href=\"#h-final-thoughts-on-making-tax-digital-for-vat\" data-level=\"2\">Final thoughts&nbsp;on Making Tax Digital for VAT<\/a><\/li><li><a href=\"#h-more-making-tax-digital-information\" data-level=\"2\">More Making Tax Digital information<\/a><\/li><li><a href=\"#h-additional-mtd-for-vat-faqs\" data-level=\"2\">Additional&nbsp;MTD for VAT&nbsp;FAQs<\/a><\/li><\/ul><\/div>\n\n\n\n<h2 id=\"what-anchor-link\" class=\"wp-block-heading\">1. What is Making Tax Digital for VAT?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.sage.com\/en-gb\/blog\/glossary\/what-is-making-tax-digital\" target=\"_blank\" rel=\"noreferrer noopener\">Making Tax Digital<\/a>&nbsp;for VAT means using software to keep and&nbsp;maintain&nbsp;VAT accounting records, create VAT Returns, and send VAT Returns to HMRC.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It means you can no longer submit VAT Returns via the HMRC website in the way you may have done before MTD.&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You need to use MTD-compatible software instead.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Your accountant can still&nbsp;submit&nbsp;VAT Returns on your behalf, but your VAT accounting records still need to be kept digitally.&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You must keep your VAT accounting records for at least six years, or longer for some VAT schemes.&nbsp;<\/p>\n\n\n\n<h2 id=\"when-anchor-link\" class=\"wp-block-heading\">2. When will the scope of MTD for VAT expand?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">In April 2022, MTD for VAT expanded to all VAT-registered businesses, including businesses that were&nbsp;<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/voluntary-vat-register-making-tax-digital\" target=\"_blank\" rel=\"noreferrer noopener\">voluntarily registered for VAT<\/a>.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Before that, MTD for VAT was a legal requirement only for VAT-registered businesses over the VAT registration threshold.&nbsp;<\/p>\n\n\n\n<h2 id=\"is-anchor-link\" class=\"wp-block-heading\">3. Is Making Tax Digital for VAT compulsory?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Yes. MTD for VAT is a legal requirement for all VAT-registered businesses, regardless of turnover, unless HMRC has granted an exemption.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Before 1 April 2022, businesses had to&nbsp;comply with&nbsp;MTD for VAT rules if their taxable turnover exceeded the&nbsp;<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/making-tax-digital-thresholds-vat-itsa-corporation-tax\" target=\"_blank\" rel=\"noreferrer noopener\">VAT threshold<\/a>.&nbsp;<\/p>\n\n\n\n<h2 id=\"making-anchor-link\" class=\"wp-block-heading\">4. Is Making Tax Digital only for VAT?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">No. MTD started with VAT, but it is part of a wider&nbsp;<a href=\"https:\/\/www.sage.com\/en-gb\/making-tax-digital\" target=\"_blank\" rel=\"noreferrer noopener\">HMRC programme<\/a>.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&nbsp;MTD for Income Tax has a phased rollout for eligible sole traders and landlords.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If you are VAT-registered&nbsp;and also&nbsp;affected by MTD for Income Tax, treat the regimes separately. MTD for VAT and MTD for Income Tax have different rules, processes, and reporting requirements.<\/p>\n\n\n\n<div class=\"single-cta\">\n\t<div class=\"single-cta__positioner on-scroll-highlight__target\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Making Tax Digital for VAT software<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p><!-- wp:paragraph --><\/p>\n<p class=\"\">Discover how Sage Accounting can help you get your MTD for VAT submission right, calculate your bill and submit your VAT Return with ease.<\/p>\n<p><!-- \/wp:paragraph --><\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"https:\/\/www.sage.com\/en-gb\/making-tax-digital\/mtd-vat-software\/\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\tid=\"cta-id-10943\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tdata-button-location=\"cta_box\"\n\t\t\t\t\t\t\t\t\t\t\t>Find out more<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"355\" height=\"352\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/CTA-dotdash-1x1-1.jpg\" class=\"single-cta__image\" alt=\"Sage graphic illustration\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/CTA-dotdash-1x1-1.jpg 355w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n\n\n\n<h2 id=\"records-anchor-link\" class=\"wp-block-heading\">5. What records do businesses need to keep digitally?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">MTD for VAT requires some VAT records to be kept digitally.&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">These include your business name, principal place of business address, VAT registration number, and details of any VAT accounting schemes that you use.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Most businesses will also need to record information for each invoice or supply, including the time and date of supply, the net value excluding VAT, and the VAT rate used to calculate VAT.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Some businesses may need to keep&nbsp;additional&nbsp;information depending on their VAT scheme and circumstances.&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If you print or handwrite invoices or receipts, you need to transfer the VAT accounting information into your accounting software before&nbsp;submitting&nbsp;your VAT Return.&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Keep the paperwork where you need it for other accounting or record-keeping purposes.&nbsp;<\/p>\n\n\n\n<h2 id=\"who-anchor-link\" class=\"wp-block-heading\">6. Who does MTD for VAT apply to?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">MTD for VAT applies to VAT-registered businesses, regardless of turnover.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If your business is VAT-registered, MTD for VAT is likely to affect you, and it is not usually possible to opt out unless HMRC agrees that an exemption applies.&nbsp;<\/p>\n\n\n\n<h2 id=\"exempt-anchor-link\" class=\"wp-block-heading\"><strong>7. Who is exempt from MTD for VAT?\u00a0<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">You can ask HMRC for a digital exemption if it is not practical for you to use computers, software, or the internet.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Reasons may include age, disability, remote location, religious grounds that prevent&nbsp;use&nbsp;of computers, or another&nbsp;reason why&nbsp;using MTD for VAT is not practical.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You or your accountant&nbsp;need&nbsp;to contact HMRC to ask for a digital exemption. You are also exempt from MTD for VAT if your business is subject to an insolvency procedure.<\/p>\n\n\n\n<h2 id=\"if-anchor-link\" class=\"wp-block-heading\"><strong>8. If I am exempt, how do I file my VAT Returns?<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">If HMRC agrees that you are digitally exempt, you may be able to file a paper VAT Return, but this is at HMRC\u2019s discretion.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You or your accountant should contact HMRC to discuss the right filing&nbsp;option&nbsp;for your circumstances.<\/p>\n\n\n\n<h2 id=\"the-anchor-link\" class=\"wp-block-heading\">9. What is the timetable for MTD for VAT?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">MTD for VAT became mandatory in April 2019 for VAT-registered businesses and&nbsp;organisations&nbsp;with turnover above the VAT threshold.&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This included sole traders, partnerships, limited companies, non-UK businesses registered for UK VAT, trusts, and charities.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Certain more complex&nbsp;organisations, such as local authorities, public corporations, trusts, and VAT divisions and groups, had a deferred start date and joined MTD for VAT in October 2019.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">VAT-registered businesses under the VAT threshold joined from April 2022.&nbsp;.<\/p>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"#gate-7d156956-5d50-4831-b17a-2a8df0b4167b\">Download your free (and easily printable) Making Tax Digital checklist and follow the steps to help you with your VAT Return processes<\/a><\/div>\n<\/div>\n\n\n\n<h2 id=\"mtd-anchor-link\" class=\"wp-block-heading\"><strong>10. What is the MTD for VAT deadline?\u00a0<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The main&nbsp;<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/making-tax-digital-for-vat-update-accountants\" target=\"_blank\" rel=\"noreferrer noopener\">MTD for VAT deadlines<\/a>&nbsp;have passed. MTD for VAT became mandatory for all VAT-registered businesses, regardless of turnover, from April 2022.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If you are VAT-registered now, you should use MTD-compatible software for VAT records and returns unless HMRC has granted an exemption.&nbsp;<\/p>\n\n\n\n<h2 id=\"was-anchor-link\" class=\"wp-block-heading\"><strong>11. What was the soft-landing period?<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">When MTD for VAT started in April 2019, HMRC gave businesses a soft-landing period that allowed them to continue copying and pasting data for VAT accounting without penalties until April 2020.&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Normally, this was prohibited because of MTD digital linking rules.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">At the beginning of the coronavirus pandemic, HMRC extended the soft-landing period to April 2021.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">That period has ended. A business using MTD for VAT now needs digital links throughout its VAT accounting process.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">According to HMRC, a&nbsp;<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/what-is-an-mtd-digital-link\" target=\"_blank\" rel=\"noreferrer noopener\">digital link<\/a>&nbsp;has two key characteristics:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>data is transferred electronically between software programs, products, or applications,\u00a0\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>and the transfer is automated without manual intervention such as copying and pasting by hand.\u00a0<\/li>\n<\/ul>\n\n\n\n<h2 id=\"should-anchor-link\" class=\"wp-block-heading\"><strong>12. What should you do to prepare for MTD for VAT?<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The key difference between MTD for VAT and older VAT filing processes is that VAT accounting records and VAT Returns must be handled through compatible software.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If you are already using cloud accounting software, check that the MTD for VAT feature is active and that your VAT data is digitally linked.&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If you use older software, spreadsheets, or manual records, you should check whether your setup can meet MTD for VAT requirements now.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Practical preparation steps include:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>checking your VAT registration details,\u00a0\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>confirming your compatible software,\u00a0\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>reviewing digital links,\u00a0\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>agreeing responsibilities with your accountant,\u00a0\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>and keeping VAT records up to date throughout each VAT period.\u00a0<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>MTD for VAT preparation checklist<\/strong>&nbsp;<\/h3>\n\n\n\n<ol start=\"1\" class=\"wp-block-list\">\n<li>Check whether your business is VAT-registered and therefore in scope.\u00a0<\/li>\n<\/ol>\n\n\n\n<ol start=\"2\" class=\"wp-block-list\">\n<li>Confirm you are using MTD-compatible software or bridging software.\u00a0<\/li>\n<\/ol>\n\n\n\n<ol start=\"3\" class=\"wp-block-list\">\n<li>Make sure VAT records are kept digitally throughout the VAT period.\u00a0<\/li>\n<\/ol>\n\n\n\n<ol start=\"4\" class=\"wp-block-list\">\n<li>Check that\u00a0<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/what-is-an-mtd-digital-link\" target=\"_blank\" rel=\"noreferrer noopener\">digital links<\/a>\u00a0are in place if data moves between systems.\u00a0<\/li>\n<\/ol>\n\n\n\n<ol start=\"5\" class=\"wp-block-list\">\n<li>Agree who will\u00a0submit\u00a0VAT Returns\u2014you or your accountant.\u00a0<\/li>\n<\/ol>\n\n\n\n<p class=\"wp-block-paragraph\">Review deadlines and penalty rules so you do not miss a filing date.\u00a0<\/p>\n\n\n\n<h2 id=\"about-anchor-link\" class=\"wp-block-heading\">13. What about VAT special schemes?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">MTD for VAT applies if you use VAT schemes offered by HMRC, such as the flat rate, margin, or retail schemes.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Your digital record-keeping requirements may vary depending on the scheme you use, so&nbsp;check&nbsp;your software setup and HMRC guidance if you are unsure.&nbsp;<\/p>\n\n\n\n<h2 id=\"register-anchor-link\" class=\"wp-block-heading\">14. How do I register for MTD for VAT?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">HMRC says all VAT-registered businesses should now be signed up for MTD for VAT.&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">New VAT-registered businesses are signed up automatically unless they are already exempt or have applied for exemption.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If you are unsure whether your business is set up correctly,&nbsp;check&nbsp;your HMRC account, review your software connection, or speak to your accountant.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You may need to activate MTD for VAT functionality in your software and connect it using the correct Government Gateway details for your business.ed to activate the MTD functionality in the software, requiring your MTD login details.<\/p>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"#gate-7d156956-5d50-4831-b17a-2a8df0b4167b\">Download your free (and easily printable) Making Tax Digital checklist and follow the steps to help you with your VAT Return processes<\/a><\/div>\n<\/div>\n\n\n\n<h2 id=\"information-anchor-link\" class=\"wp-block-heading\"><strong>15. What information needs to be\u00a0submitted?\u00a0<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">When setting up or checking your MTD for VAT position, you may need information such as:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>your Government Gateway ID and password,\u00a0\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>company VAT number,\u00a0\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>VAT registration date,\u00a0\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>postcode for the principal place of business,\u00a0\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>and details from your most recent VAT Return.\u00a0<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">You also need to know which MTD-compatible software you are using for VAT accounting and VAT Return submission.&nbsp; software you\u2019re using for your VAT accounting, so you will need to make this decision ahead of time.<\/p>\n\n\n\n<h2 id=\"submit-anchor-link\" class=\"wp-block-heading\"><strong>16. How do I\u00a0submit\u00a0a MTD for VAT Return?<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Once your VAT Return date comes around, you file it through the accounting software your business uses, or through bridging software if you calculate your VAT in another tool such as a spreadsheet.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Your accounting software needs to be MTD for VAT-ready.&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In most software, you will usually create a VAT report or VAT Return and then&nbsp;submit&nbsp;it using the MTD process.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Any adjustments or reliefs should be applied before you&nbsp;submit&nbsp;the VAT Return to HMRC.&nbsp;<\/p>\n\n\n\n<h2 id=\"can-anchor-link\" class=\"wp-block-heading\"><strong>17. Who can file the MTD for VAT Return?<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">You can file the VAT Return yourself, or your accountant can file it on your behalf.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If your accountant files for you, they will use their HMRC Agent Services account and need the right authority to act for your business.&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Discuss this with your accountant before your VAT Return is due.<\/p>\n\n\n\n<h2 id=\"file-anchor-link\" class=\"wp-block-heading\"><strong>18. How do I file my VAT Return once I am in MTD for VAT?<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">If you use Sage Accounting, you can send a VAT Return with MTD for VAT.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Sage also provides guidance showing the steps required to&nbsp;submit&nbsp;an MTD for VAT Return using Sage Accounting.&nbsp;<\/p>\n\n\n\n<h2 id=\"happens-anchor-link\" class=\"wp-block-heading\"><strong>19. What happens if I cannot file my VAT Return once registered?<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">HMRC introduced a points-based late submission and&nbsp;late payment&nbsp;sanctions system for MTD for VAT in January 2023.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In summary, missing a submission deadline earns one point.&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Once your number of points exceeds a threshold&nbsp;in a given&nbsp;period, a \u00a3200 penalty is applied.&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The threshold depends on how&nbsp;frequently&nbsp;you&nbsp;submit&nbsp;VAT Returns.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Quarterly submissions have a threshold of four points before the penalty is applied.&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Monthly submissions have a threshold of five points. Annual submissions have a threshold of two points.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You can find more details in HMRC\u2019s penalties for late submission guidance.&nbsp;<\/p>\n\n\n\n<h2 id=\"need-anchor-link\" class=\"wp-block-heading\"><strong>What this means for your business\u00a0<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">MTD for VAT is not just&nbsp;a different way&nbsp;to press&nbsp;submit.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It affects how VAT information is recorded, stored, linked, reviewed, and sent to HMRC.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The most practical way to stay compliant is to keep records digitally during the VAT period, rather than waiting until the return is due.&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This makes it easier to spot missing invoices, check VAT rates, apply adjustments, and work with your accountant if you use one.<\/p>\n\n\n\n<h2 id=\"takeaways\" class=\"wp-block-heading\"><strong>MTD for VAT: key requirements\u00a0at a glance<\/strong><\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Requirement<\/strong>&nbsp;<\/td><td><strong>What it means<\/strong>&nbsp;<\/td><td><strong>What to check<\/strong>&nbsp;<\/td><\/tr><tr><td>Digital records&nbsp;<\/td><td>VAT records must be kept digitally.&nbsp;<\/td><td>Check business details, VAT registration number, invoices, VAT rates, and scheme details.&nbsp;<\/td><\/tr><tr><td>Compatible software&nbsp;<\/td><td>VAT Returns must be&nbsp;submitted&nbsp;using MTD-compatible software.&nbsp;<\/td><td>Check that your software can connect to HMRC for MTD for VAT.&nbsp;<\/td><\/tr><tr><td>Digital links&nbsp;<\/td><td>VAT data should&nbsp;move&nbsp;electronically between systems.&nbsp;<\/td><td>Avoid manual copying and pasting where digital links are&nbsp;required.&nbsp;<\/td><\/tr><tr><td>Exemptions&nbsp;<\/td><td>Some businesses can ask HMRC for exemption.&nbsp;<\/td><td>Contact HMRC if digital records or software are not practical for your circumstances.&nbsp;<\/td><\/tr><tr><td>Penalties&nbsp;<\/td><td>Late submissions can lead to points and penalties.&nbsp;<\/td><td>Keep VAT Return deadlines visible and&nbsp;agree&nbsp;responsibilities with your accountant.&nbsp;<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 id=\"more-info\" class=\"wp-block-heading\"><strong>Need more information on\u00a0submitting\u00a0a MTD for VAT tax return?\u00a0<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Sage Advice has a separate article covering how to&nbsp;submit&nbsp;a Making Tax Digital for VAT tax return.&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Use it if you need a more detailed walkthrough of the submission process.&nbsp;<\/p>\n\n\n\n<h2 id=\"h-final-thoughts-on-making-tax-digital-for-vat\" class=\"wp-block-heading\"><strong>Final thoughts\u00a0on Making Tax Digital for VAT<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">For most VAT-registered businesses, MTD for VAT is now part of day-to-day VAT compliance. The best approach is to keep records digitally as you go,&nbsp;check&nbsp;your software is properly connected, and make sure the person&nbsp;submitting&nbsp;the VAT Return has the information they need before the deadline.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If you are unsure whether your process meets MTD for VAT requirements, review HMRC guidance, check your software settings, or speak to your accountant before your next VAT Return is due.&nbsp;<\/p>\n\n\n\n<h2 id=\"h-more-making-tax-digital-information\" class=\"wp-block-heading\"><strong>More Making Tax Digital information<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Making Tax Digital for Income Tax explained\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>MTD for Income Tax: how to switch from\u00a0Self Assessment\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>How to\u00a0submit\u00a0a Making Tax Digital for VAT tax return\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/www.sage.com\/en-gb\/blog\/what-is-an-mtd-digital-link\" target=\"_blank\" rel=\"noreferrer noopener\">What is an MTD digital link?<\/a>\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>HMRC penalties for Making Tax Digital\u00a0<\/li>\n<\/ul>\n\n\n\n<h2 id=\"h-additional-mtd-for-vat-faqs\" class=\"wp-block-heading\"><strong>Additional\u00a0MTD for VAT\u00a0FAQs<\/strong><\/h2>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1785426969166\"><strong class=\"schema-faq-question\"><strong>What is MTD for VAT?\u00a0<\/strong><\/strong> <p class=\"schema-faq-answer\"><a href=\"https:\/\/www.sage.com\/en-gb\/blog\/glossary\/what-is-mtd-for-vat\" target=\"_blank\" rel=\"noreferrer noopener\">MTD for VAT<\/a>\u00a0is HMRC&#8217;s requirement for VAT-registered businesses to keep VAT records digitally and\u00a0submit\u00a0VAT\u00a0Returns using compatible software.\u00a0<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1785426975459\"><strong class=\"schema-faq-question\"><strong>Who needs to follow MTD for VAT rules?\u00a0<\/strong><\/strong> <p class=\"schema-faq-answer\">All VAT-registered businesses need to follow MTD for VAT rules unless HMRC has granted an exemption.\u00a0<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1785426985651\"><strong class=\"schema-faq-question\"><strong>Can I still\u00a0submit\u00a0my VAT Return through the HMRC website?\u00a0<\/strong><\/strong> <p class=\"schema-faq-answer\">No. Under MTD for VAT, VAT Returns need to be\u00a0submitted\u00a0through compatible software rather than the older HMRC website process.\u00a0<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1785426997532\"><strong class=\"schema-faq-question\"><strong>Can my accountant\u00a0submit\u00a0my VAT Return for me?\u00a0<\/strong><\/strong> <p class=\"schema-faq-answer\">Yes. Your accountant can\u00a0submit\u00a0your VAT Return on your behalf if they have the correct authority and software setup.\u00a0<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1785427009083\"><strong class=\"schema-faq-question\"><strong>Can I use spreadsheets for MTD for VAT?\u00a0<\/strong><\/strong> <p class=\"schema-faq-answer\">You can use spreadsheets, but you may need bridging software and must follow\u00a0<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/what-is-an-mtd-digital-link\/\" target=\"_blank\" rel=\"noreferrer noopener\">digital linking rules<\/a>\u00a0where VAT data moves between systems.\u00a0<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1785427018698\"><strong class=\"schema-faq-question\"><strong>What happens if I miss a VAT submission deadline?\u00a0<\/strong><\/strong> <p class=\"schema-faq-answer\">HMRC can apply a penalty point for a missed submission.\u00a0\u00a0<br>If you exceed the points threshold for your filing frequency, a \u00a3200 penalty can apply.\u00a0<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1785427036753\"><strong class=\"schema-faq-question\"><strong>What should I do if I cannot use digital tools?\u00a0<\/strong><\/strong> <p class=\"schema-faq-answer\">Contact HMRC to discuss whether a digital exemption may apply to your circumstances.\u00a0<\/p> <\/div> <\/div>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<div class=\"single-cta gated-content\">\n\t<div class=\"single-cta__positioner on-scroll-highlight__target\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Making Tax Digital for VAT checklist<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p><!-- wp:paragraph --><\/p>\n<p class=\"\">Download your free (and easily printable) Making Tax Digital checklist and follow the steps to help you with your VAT Return processes.<\/p>\n<p><!-- \/wp:paragraph --><\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-7d156956-5d50-4831-b17a-2a8df0b4167b\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Download your free checklist<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1171809453-1440x810.jpg\" class=\"single-cta__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1171809453-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n\n\n\n<div class=\"single-cta\">\n\t<div class=\"single-cta__positioner on-scroll-highlight__target\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Subscribe to the Sage Advice newsletter<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p>Join more than 500,000 UK readers and get the best business admin strategies and tactics, as well as actionable advice to help your company thrive, in your inbox every month.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-b1a63862-3fa0-4a5e-bb67-c76b88bbc6b8\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Subscribe now<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1073797282-1-1440x810.jpg\" class=\"single-cta__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1073797282-1-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n\n\n<section class=\"more-topics alignfull has-grey-light-background-color wp-block-sage-post-topics\">\n\t<div class=\"container\">\n\t\t<div class=\"row\">\n\t\t\t<div class=\"col col-12 col-lg-4\">\n\t\t\t\t<h3 class=\"more-topics__title h2\">Browse more topics from this article<\/h3>\n\t\t\t<\/div>\n\t\t\t<div class=\"col col-12 col-lg-8\">\n\t\t\t\t<ul class=\"post-tags__list\">\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/tag\/mtd-business\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tMaking Tax Digital for businesses\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/tag\/need-to-know\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tNeed to know\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/tag\/tax\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tTax\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/tag\/vat\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tVAT\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t<\/ul>\n\t\t\t<\/div>\n\t\t<\/div>\n\t<\/div>\n<\/section>\n\n\n<div class=\"alignfull wp-block-sage-related-posts\">\n\t<section class=\"related-posts card-grid has-dark-background-color\">\n\t<div class=\"container\">\n\t\t\t\t\t<div class=\"row\">\n\t\t\t\t<div class=\"col\">\n\t\t\t\t\t<h2 class=\"related-posts__heading related-posts__heading--featured h1\">Explore more wisdom<\/h2>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\n\t\t\t<div class=\"row related-posts__featured\">\n\t\t\t\t<div class=\"col card-grid__item\">\n\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-0 post-10151 post type-post status-publish format-standard has-post-thumbnail hentry category-money-matters category-strategy-legal-operations tag-bookkeeping tag-business-finances tag-mtd-business tag-need-to-know tag-tax tag-vat business_type-small-business card-post--is-clickable\"\n>\n\t<div class=\"card-post__media-wrapper\">\n\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1166663659-1440x810.jpg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1166663659-684x384.jpg 684w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1166663659-768x432.jpg 768w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1166663659-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\t<\/div>\n\n\t<div class=\"card-post__content\">\n\t\t\t\t\t<div class=\"card-post__label\">Recommended<\/div>\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-07-31T10:48:56+01:00\">31 July, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">7 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h3\">\n\t\t\t\t\t\t\t<a\n\t\t\t\t\tclass=\"card-post__title-link\"\n\t\t\t\t\thref=\"https:\/\/www.sage.com\/en-gb\/blog\/mtd-for-vat-business-tame-tax\/\"\n\t\t\t\t>\n\t\t\t\n\t\t\tMaking Tax Digital: how MTD for VAT helps your business tame tax\n\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t<\/p>\n\n\t\t\n\t\t\t\t\t<p class=\"card-post__description\">\n\t\t\t\tTax can be time-consuming for small businesses. Making Tax Digital (MTD) for VAT helps you keep digital records, use compatible software, and submit VAT Returns to HMRC more efficiently.\t\t\t<\/p>\n\t\t\n\t\t\t<\/div>\n\n\t<\/article>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\n\t\t\t\t\t<div class=\"row related-posts__non-featured\">\n\t\t\t\t<div class=\"col col-12\">\n\t\t\t\t\t<h2 class=\"related-posts__heading related-posts__heading--more h4\">More on this Topic<\/h2>\n\t\t\t\t<\/div>\n\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-1 post-10038 post type-post status-publish format-standard has-post-thumbnail hentry category-money-matters category-strategy-legal-operations tag-bookkeeping tag-business-finances tag-mtd-business tag-need-to-know tag-tax business_type-small-business\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-gb\/blog\/mtd-income-tax-needs-to-know\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/09\/GettyImages-1413633547-684x384.jpg\" class=\"card-post__image\" alt=\"Checking products to sell to customers\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/09\/GettyImages-1413633547-684x384.jpg 684w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/09\/GettyImages-1413633547-768x512.jpg 768w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/09\/GettyImages-1413633547-1215x810.jpg 1215w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-07-31T10:20:19+01:00\">31 July, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">9 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\t6 things you need to know about Making Tax Digital for Income Tax\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-2 post-10211 post type-post status-publish format-standard has-post-thumbnail hentry category-money-matters category-strategy-legal-operations tag-accountant-accounting tag-accountant-tax tag-accountants-online-hub-gb tag-business-finances tag-mtd-accountants tag-mtd-business tag-making-tax-digital-for-income-tax tag-making-tax-digital-for-vat tag-need-to-know tag-tax tag-vat business_type-small-business business_type-accountants\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-gb\/blog\/hmrc-penalty-making-tax-digital\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1267191201_updated-684x384.jpg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1267191201_updated-684x384.jpg 684w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1267191201_updated-768x432.jpg 768w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1267191201_updated-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-07-31T09:06:37+01:00\">31 July, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">8 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tMaking Tax Digital for Income Tax penalties: HMRC&#8217;s new systems explained\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-3 post-25955 post type-post status-publish format-standard has-post-thumbnail hentry category-money-matters tag-bookkeeping tag-mtd-business tag-making-tax-digital-for-income-tax tag-tax business_type-small-business industry-construction\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-gb\/blog\/mtd-for-income-tax-what-it-means-for-trades-and-skilled-workers\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-585283345-684x384.jpg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-585283345-684x384.jpg 684w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-585283345-768x432.jpg 768w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-585283345-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-07-30T16:24:46+01:00\">30 July, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">10 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tMTD for Income Tax: what it means for trades and skilled workers\u00a0\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-4 post-30243 post type-post status-publish format-standard has-post-thumbnail hentry category-strategy-legal-operations tag-mtd-business tag-making-tax-digital-for-income-tax business_type-small-business\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-gb\/blog\/mtd-income-tax-recognised-ready-software\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2026\/05\/AdobeStock_414034976-684x384.jpg\" class=\"card-post__image\" alt=\"Somebody working on MTD for Income Tax using an app\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2026\/05\/AdobeStock_414034976-684x384.jpg 684w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2026\/05\/AdobeStock_414034976-768x432.jpg 768w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2026\/05\/AdobeStock_414034976-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-07-30T16:09:16+01:00\">30 July, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">8 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tIs your software MTD-ready\u2014and are you? Here\u2019s how to find out\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n<\/section>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Looking for clear answers on Making Tax Digital for VAT? This guide explains what MTD for VAT means, who it applies to, what records you need to keep, how to submit returns, and what to do if you need help filing. <\/p>\n","protected":false},"author":356,"featured_media":11653,"menu_order":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sage_video":true,"post_featured_image_hide":false,"sage_hide_published_date":false,"sage_hide_read_time":false,"sage_hide_share_buttons":false,"_pwl_sage_podcast_buzzsprout_src":"","footnotes":""},"categories":[6,9],"tags":[30,206,27,28],"business_type":[4],"lilypad":[],"context":[],"industry":[],"persona":[73,74,75],"imagine_tag":[77,142,333,200,109],"coauthors":[351],"class_list":["post-10209","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-money-matters","category-strategy-legal-operations","tag-mtd-business","tag-need-to-know","tag-tax","tag-vat","business_type-small-business"],"sage_meta":{"region":"en-gb","author_name":"Asavin Wattanajantra","featured_image":"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1282134863.jpg","imagine_tags":{"77":"Accounting software","142":"Making Tax Digital for businesses","333":"Making tax digital for VAT","200":"Payroll","109":"Small business"}},"distributor_meta":false,"distributor_terms":false,"distributor_media":false,"distributor_original_site_name":"Sage Advice UK","distributor_original_site_url":"https:\/\/www.sage.com\/en-gb\/blog","push-errors":false,"_links":{"self":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/posts\/10209","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/users\/356"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/comments?post=10209"}],"version-history":[{"count":1,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/posts\/10209\/revisions"}],"predecessor-version":[{"id":31560,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/posts\/10209\/revisions\/31560"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/media\/11653"}],"wp:attachment":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/media?parent=10209"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/categories?post=10209"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/tags?post=10209"},{"taxonomy":"business_type","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/business_type?post=10209"},{"taxonomy":"lilypad","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/lilypad?post=10209"},{"taxonomy":"context","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/context?post=10209"},{"taxonomy":"industry","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/industry?post=10209"},{"taxonomy":"persona","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/persona?post=10209"},{"taxonomy":"imagine_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/imagine_tag?post=10209"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/coauthors?post=10209"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}