{"id":6314,"date":"2022-12-13T10:02:00","date_gmt":"2022-12-13T10:02:00","guid":{"rendered":"https:\/\/www.sage.com\/en-gb\/blog\/?p=6314"},"modified":"2025-12-24T10:34:44","modified_gmt":"2025-12-24T10:34:44","slug":"vat-return-making-tax-digital","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-gb\/blog\/vat-return-making-tax-digital\/","title":{"rendered":"Making Tax Digital for VAT: complete guide to compulsory requirements"},"content":{"rendered":"<header class=\"entry-header has-dark-background-color entry-header--has-illustration entry-header--has-illustration--generic\">\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: complete guide to compulsory requirements\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\t\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<div class=\"single-post-details container\">\n\t\t<div class=\"col\">\n\t\t\t<span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2022-12-13T10:02:00+00:00\">13 December, 2022<\/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: complete guide to compulsory requirements\"\n\t\t\tdata-share-url=\"https:\/\/www.sage.com\/en-gb\/blog\/vat-return-making-tax-digital\/\"\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<\/header>\n\n\n\n<div class=\"wp-block-post-author\">\n\t\t\t<div class=\"co-authors\">\n\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\/ryangrundy\/\">\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\/2022\/06\/Ryan-Grundy.jpg\" class=\"entry-author__image\" alt=\"Ryan Grundy\" \/>\t\t\t\t<span class=\"entry-author__name\">Ryan Grundy<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t<\/div>\n\t\t<\/div>\n\n\n\n\n\n<p>Making Tax Digital (MTD) for VAT is legislation from HMRC that affects how all VAT-registered businesses must do their VAT accounting. It requires digital VAT record keeping and VAT digital filing via MTD-compatible software.<\/p>\n\n\n\n<p>This is a guide on <a href=\"https:\/\/www.sage.com\/en-gb\/blog\/mtd-for-vat-questions-answered\/\">MTD for VAT<\/a> for both businesses and agents. We look at what considerations you should make before registering.<\/p>\n\n\n\n<p><a href=\"https:\/\/www.sage.com\/en-gb\/making-tax-digital\/\">Sage&#8217;s Making Tax Digital Hub<\/a>&nbsp;is regularly updated with information, including a timeline of events, but here&#8217;s what we cover in this article:<\/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=\"#overview\" data-level=\"2\">Is Making Tax Digital for VAT compulsory?<\/a><\/li><li><a href=\"#overview\" data-level=\"2\">An overview of Making Tax Digital for VAT<\/a><\/li><li><a href=\"#what\" data-level=\"2\">What was the April 2022 mandation of MTD for VAT all about?<\/a><\/li><li><a href=\"#is\" data-level=\"2\">When should businesses start following Making Tax Digital for VAT?<\/a><ul><li><a href=\"#h-key-compliance-dates\" data-level=\"3\">Key compliance dates:<\/a><\/li><\/ul><\/li><li><a href=\"#when\" data-level=\"2\">When should businesses file their MTD for VAT returns?<\/a><ul><li><a href=\"#happens-anchor-link\" data-level=\"3\">What happens if I miss my submission date?<\/a><\/li><\/ul><\/li><li><a href=\"#for\" data-level=\"2\">Helping businesses comply with MTD for VAT as an agent<\/a><\/li><li><a href=\"#registering\" data-level=\"2\">What businesses need to do following automatic MTD for VAT sign up<\/a><ul><li><a href=\"#and-anchor-link\" data-level=\"3\">Creating and submitting an MTD for VAT Return using Sage Accounting<\/a><\/li><\/ul><\/li><li><a href=\"#final\" data-level=\"2\">Final thoughts on Making Tax Digital for VAT<\/a><\/li><\/ul><\/div>\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 class=\"wp-block-heading\" id=\"overview\">Is Making Tax Digital for VAT compulsory?<\/h2>\n\n\n\n<p>Yes. MTD for VAT is compulsory for all VAT-registered businesses in the UK from accounting periods beginning on or after 1 April 2022. You must keep digital records and submit VAT Returns using MTD-compatible software. See HMRC guidance: <a href=\"https:\/\/www.gov.uk\/guidance\/making-tax-digital-for-vat\">Making Tax Digital for VAT<\/a>.<\/p>\n\n\n\n<p>Who must comply (summary):<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>All VAT-registered businesses, regardless of turnover.<\/li>\n\n\n\n<li>Businesses filing monthly, quarterly or annually (annual filers are included).<\/li>\n<\/ul>\n\n\n\n<p>Who may be exempt:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Businesses that are digitally excluded for reasons of age, disability, remoteness, or on religious grounds (you must apply to HMRC for an exemption).<\/li>\n\n\n\n<li>Businesses subject to an insolvency procedure (specific rules apply).<\/li>\n<\/ul>\n\n\n\n<p>If you\u2019re not exempt, VAT digital filing is mandatory and you\u2019ll need compatible, <em>compulsory VAT software<\/em> to comply.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"overview\">An overview of Making Tax Digital for VAT<\/h2>\n\n\n\n<p>With Making Tax Digital for VAT, if you have a business that falls within its scope, you must submit VAT Returns via software.<\/p>\n\n\n\n<p>And you need to keep your VAT records digitally.<\/p>\n\n\n\n<p>Essentially, MTD for VAT means you must use <a href=\"https:\/\/www.sage.com\/en-gb\/size\/self-employed\/\" target=\"_blank\" rel=\"noreferrer noopener\">accounting software<\/a> that can connect to HMRC&#8217;s systems to file a VAT Return (or use a computerised accounting process that can do so).<\/p>\n\n\n\n<p>And with <a href=\"https:\/\/www.sage.com\/en-gb\/blog\/hmrc-making-tax-digital-vat-letters\/#key\">VAT Return filing deadlines on the horizon<\/a>, it\u2019s vital that you\u2019re following the rules.<\/p>\n\n\n\n<p>In fact, <a href=\"https:\/\/www.sage.com\/en-gb\/blog\/hmrc-making-tax-digital-vat-letters\/\">HMRC may have sent you an email or letter<\/a> to highlight what you have to do now with regards to Making Tax Digital.<\/p>\n\n\n\n<p>Since 1 November 2022, you can no longer use <a href=\"https:\/\/www.gov.uk\/government\/news\/less-than-one-month-left-for-vat-businesses-to-be-ready-for-making-tax-digital-filing\">your existing VAT online account<\/a> to file quarterly or monthly VAT Returns (although for certain businesses, HMRC have provided an extension.)<\/p>\n\n\n\n<p>According to&nbsp;<a href=\"https:\/\/www.techradar.com\/uk\/best\/best-mtd-software-of-2021\">TechRadar<\/a>: &#8220;The best route to take for making the whole tax filing process even easier is to select a comprehensive accounting solution,&#8221;\u2014and it&#8217;s chosen&nbsp;<a href=\"https:\/\/www.techradar.com\/uk\/best\/best-mtd-software-of-2021\">Sage Accounting as the ideal choice<\/a>&nbsp;to fit that criteria.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"what\">What was the April 2022 mandation of MTD for VAT all about?<\/h2>\n\n\n\n<p>Making Tax Digital for VAT applies to all VAT registered businesses (apart from those that are digitally excluded).<\/p>\n\n\n\n<p>Any businesses that were registered for VAT but below the VAT threshold didn\u2019t have to follow MTD for VAT when the new legislation was first rolled out in April 2019.<\/p>\n\n\n\n<p>But that changed in April 2022, when the mandation of MTD for VAT for those businesses began.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Running a VAT registered business and new to MTD for VAT?<\/h3>\n\n\n\n<p>Unless you\u2019re exempt, you need to use follow the MTD rules from your first full VAT accounting period post-1 April 2022.<\/p>\n\n\n\n<p>Note that using MTD for VAT-compatible accounting software doesn&#8217;t automatically mean you&#8217;re compliant.<\/p>\n\n\n\n<p>Though you don\u2019t need to register for the scheme (as HMRC does this automatically), you\u2019ll need to make sure the feature is activated within your software, and that you\u2019re keeping digital accounting records.<\/p>\n\n\n\n<div class=\"single-cta\">\n\t<div class=\"single-cta__positioner\">\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 class=\"wp-block-heading\" id=\"is\">When should businesses start following Making Tax Digital for VAT?<\/h2>\n\n\n\n<p>The rule is simple for businesses new to MTD for VAT.<\/p>\n\n\n\n<p>By law, assuming you are below the VAT threshold and are a \u2018voluntary filer\u2019, you need to start adhering to&nbsp;<a href=\"https:\/\/www.sage.com\/en-gb\/making-tax-digital\/\">Making Tax Digital<\/a>&nbsp;from the first day of your first VAT period that began on or after 1 April 2022.<\/p>\n\n\n\n<p>Therefore, for example:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>If your VAT period had a&nbsp;<strong>31 March 2022 end date<\/strong>, your first VAT quarter under MTD for VAT starts on&nbsp;<strong>1 April 2022<\/strong>.<\/li>\n\n\n\n<li>If your VAT period has a&nbsp;<strong>30 April 2022 end date<\/strong>, your first VAT quarter under MTD for VAT starts on&nbsp;<strong>1 May 2022<\/strong>.<\/li>\n\n\n\n<li>If your VAT period has a&nbsp;<strong>31 May 2022 end date<\/strong>, your first VAT quarter under MTD for VAT starts&nbsp;<strong>1 June 2022<\/strong>.<\/li>\n<\/ul>\n\n\n\n<p>And since 1 November 2022, you\u2019ve no longer been able to file quarterly or monthly VAT Returns&nbsp;<a href=\"https:\/\/www.gov.uk\/government\/news\/less-than-one-month-left-for-vat-businesses-to-be-ready-for-making-tax-digital-filing\">using your existing VAT online account,<\/a> as this route has been decommissioned.<\/p>\n\n\n\n<p>Now, you need to use MTD-compatible software to file your VAT returns. Make sure you&#8217;re doing that or you could face a penalty from HMRC.<\/p>\n\n\n\n<p>(Do you file your VAT Returns annually? You should still be making every effort to submit in line with MTD, though HMRC has given a short extension for remaining business to get compliant by 15 May 2023.) Use our <a href=\"https:\/\/www.sage.com\/en-gb\/making-tax-digital\/\" target=\"_blank\" rel=\"noreferrer noopener\">MTD hub page<\/a> to stay informed and keep up to date with the latest key dates and requirements.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-key-compliance-dates\"><strong>Key compliance dates:<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>1 April 2019: Initial MTD for VAT mandation (turnover above VAT threshold).<\/li>\n\n\n\n<li>1 April 2022: MTD for VAT becomes compulsory for all VAT-registered businesses.<\/li>\n\n\n\n<li>1 November 2022: Legacy VAT online account closed for monthly\/quarterly filers.<\/li>\n\n\n\n<li>1 January 2023: New late submission\/late payment penalty regime begins.<\/li>\n\n\n\n<li>15 May 2023: Transition period for remaining annual filers ends.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"when\">When should businesses file their MTD for VAT returns?<\/h2>\n\n\n\n<p>Don&#8217;t forget that a VAT return and payment must usually be filed within a calendar month plus seven days after the VAT accounting period ends.<\/p>\n\n\n\n<p>However, you should always check the filing deadline for your business in your online VAT account at HMRC&#8217;s website.<\/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<h3 class=\"wp-block-heading\" id=\"happens-anchor-link\">What happens if I miss my submission date?<\/h3>\n\n\n\n<p>In the first year of Making Tax Digital mandation, HMRC took a &#8216;light touch&#8217; to penalties.<\/p>\n\n\n\n<p>Now it&#8217;s not doing this. You need to get things right from day one or you may face penalties.<\/p>\n\n\n\n<p>Beginning in January 2023, a&nbsp;<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/hmrc-penalty-making-tax-digital\/\">points-based late submission system<\/a>&nbsp;will apply to MTD for VAT. <\/p>\n\n\n\n<p>There&#8217;ll also be penalty charges if you pay more than 16 days late (or fail to agree to a Time to Pay arrangement with HMRC).<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"for\">Helping businesses comply with MTD for VAT as an agent<\/h2>\n\n\n\n<p>If you&#8217;re an agent\/accountant, there are several things you&#8217;ll need to do to help your clients comply with MTD for VAT.<\/p>\n\n\n\n<p>Alternatively, if you&#8217;re using an agent\/accountant for MTD for VAT, you should ensure their doing the following to support you.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Step 1: Get the right software<\/strong><\/h4>\n\n\n\n<p>Make sure the software the business is using is compatible for MTD for VAT, allowing digital record keeping and direct VAT returns to HMRC. <\/p>\n\n\n\n<p>If the current software isn\u2019t compatible, support your client in choosing one that is.<\/p>\n\n\n\n<p>Sage offers a range of high-quality accounting solutions that <a href=\"https:\/\/www.sage.com\/en-gb\/making-tax-digital\/software-comparison\" target=\"_blank\" rel=\"noreferrer noopener\">stand out for their reliability and innovation<\/a> in the market.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Step 2: Create an agent services account<\/strong><\/h4>\n\n\n\n<p>If you haven\u2019t already, you need to create an agent services account.<\/p>\n\n\n\n<p>This lets you administer Making Tax Digital on behalf of your clients (including both MTD for VAT and, when it arrives in 2024, MTD for Income Tax).<\/p>\n\n\n\n<p>Before registering for an agent services account, you need to&nbsp;<a href=\"https:\/\/www.gov.uk\/guidance\/register-with-hmrc-to-use-an-agent-services-account\">register with HMRC as an agent<\/a>. This is a postal application rather than an online one.<\/p>\n\n\n\n<p>Before you can apply to be an agent, you must have&nbsp;<a href=\"https:\/\/www.gov.uk\/anti-money-laundering-registration\">registered with a supervisory authority<\/a>&nbsp;(or HMRC) regarding anti-money laundering. You may already have this in place via your chartered body (ACCA, AAT, CIMA, etc).<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Step 3: Link existing VAT clients to your agent services account<\/strong><\/h4>\n\n\n\n<p>If your client has already authorised you to file VAT Returns on their behalf before MTD for VAT, you need to copy them to your agent services account.<\/p>\n\n\n\n<p>This can be done within the agent services account itself by selecting the appropriate option.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Step 4: Ask new clients <strong>to authorise you to link them<\/strong><\/strong><\/h4>\n\n\n\n<p>If a client has already been automatically signed up for MTD for VAT, perhaps before your involvement with them, you can use the agent services account to ask them to authorise you.<\/p>\n\n\n\n<p>This creates an authorisation request (a web link) that you then email to your client. But you should take care because the link is time-limited and will expire if they don\u2019t respond soon.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"registering\">What businesses need to do following automatic MTD for VAT sign up<\/h2>\n\n\n\n<p>Here\u2019s everything you need to know about how to register for MTD for VAT if you\u2019re a sole trader, individual, incorporated business, or any other type of entity.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Step 1:<\/strong> Check your software<\/h4>\n\n\n\n<p>Make sure you\u2019re using MTD compatible software that\u2019s right for your business and will integrate with HMRC. <\/p>\n\n\n\n<p>If your current software does not let you submit your VAT returns in this way, you\u2019ll need to switch to a solution that does as soon as possible.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Step 2:<\/strong> Activate the MTD for VAT feature in your software<\/h4>\n\n\n\n<p>Once you have compatible software, check its VAT configuration and make sure the MTD for VAT feature is activated. <\/p>\n\n\n\n<p>This is likely to be an \u2018Enable MTD\u2019, \u2018Authenticate\u2019 or similar option that\u2019s located somewhere in the settings, options or feature menu area.<\/p>\n\n\n\n<p>Speak to your software vendor if you\u2019re unsure how to do this.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Step 3:<\/strong> Keep digital records<\/h4>\n\n\n\n<p>If you\u2019re not already doing so, start keeping all accounting records digitally for current and future VAT returns using your software. <\/p>\n\n\n\n<p>This is an essential requirement for MTD for VAT.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Step 4:<\/strong> Use your software all year round<\/h4>\n\n\n\n<p>Continue using your software throughout the year, including to file all future annual, &nbsp;quarterly, or monthly VAT returns directly to HMRC.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">How to create and submit an MTD for VAT Return<\/h3>\n\n\n\n<p>When your VAT return date comes around, you need to file it via your business&#8217;s accounting software or <a href=\"https:\/\/www.sage.com\/en-gb\/blog\/glossary\/what-is-a-bridging-tool-or-bridging-software\/\">bridging software<\/a>.<\/p>\n\n\n\n<p>You can file VAT returns in various accounting software packages\u2014generally, you should look for an option to create a VAT report or return, or something similar, within it.<\/p>\n\n\n\n<p>Suppose you&#8217;ve used the accounting software to record your VAT accounting over the previous period. <\/p>\n\n\n\n<p>The report should be generated automatically\u2014although don&#8217;t forget to enter any adjustments. Then you&#8217;ll probably need to tell the software to start submitting using the MTD process.<\/p>\n\n\n\n<div class=\"single-cta\">\n\t<div class=\"single-cta__positioner\">\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<h3 class=\"wp-block-heading\" id=\"and-anchor-link\">Creating and submitting an MTD for VAT Return using Sage Accounting<\/h3>\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\/YZTD6FCfO6Q\/maxresdefault.jpg\", \"techOrder\": [\"youtube\"], \"enablejsapi\": 1, \"origin\": \"https:\/\/www.sage.com\", \"sources\": [{ \"type\": \"video\/youtube\", \"src\": \"https:\/\/www.youtube.com\/watch?v=YZTD6FCfO6Q\"}], \"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>Here are the steps required to submit a&nbsp;<a href=\"https:\/\/youtu.be\/YZTD6FCfO6Q\">Making Tax Digital for VAT Return using Sage Accounting<\/a>:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>While viewing your accounting summary, click the Reporting heading, and then click VAT returns.<\/li>\n\n\n\n<li>Click the blue Create VAT return button.<\/li>\n\n\n\n<li>Your dates are set automatically based on HMRC\u2019s reporting requirements for your business. All you need to do is click the Calculate button.<\/li>\n\n\n\n<li>Once the calculations are complete and the figures are displayed, you might need to make adjustments. To do so, click the Adjust link alongside whichever amount needs to be adjusted.<\/li>\n\n\n\n<li>It\u2019s also possible to click the Detailed Report button to see more info about the return, and you can create a hard copy of the return by clicking the Print button. However, neither of these are necessary to file the return.<\/li>\n\n\n\n<li>Assuming you\u2019re happy with the values shown in the VAT Return, click the Submit Online to HMRC option, and then click Save.<\/li>\n\n\n\n<li>A dialogue box will appear asking you if you\u2019re sure you\u2019re happy with the return. Click the Finalise and Submit button to complete the submission.<\/li>\n\n\n\n<li>You\u2019ll be shown the VAT Return List, which shows the return and a brief status message about how it\u2019s progressing. You can view this list in future by repeating Step 2 above.<\/li>\n<\/ol>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"final\">Final thoughts on Making Tax Digital for VAT<\/h2>\n\n\n\n<p>Those who are signing up for Making Tax Digital for VAT from April 2022 onwards will have both a potentially easier and more difficult time than those who signed up back in April 2019.<\/p>\n\n\n\n<p>It&#8217;s easier because the likes of accountants and tax advisers who may be supporting them have had two years of experience to guide the process. <\/p>\n\n\n\n<p>Any problems that HMRC might have experienced in those early days had long since been ironed out.<\/p>\n\n\n\n<p>However, they haven&#8217;t got the soft-landing period that eased the rules on digital linking. <\/p>\n\n\n\n<p>But again, with support from the aforementioned experts, plus HMRC and accounting software providers, help is available to tackle any challenges.<\/p>\n\n\n\n<p>And for accountants, when it comes to dealing with Making Tax Digital, you can use automation\u2014learn how it can save you time and money with our <a href=\"https:\/\/www.sage.com\/en-gb\/accountants\/roi-calculator\/\">ROI calculator<\/a>.<\/p>\n\n\n\n<p><em>Editor\u2019s note: This article was first published in April 2019 and has been updated for relevance.<\/em><\/p>\n\n\n\n\n\n\n<div class=\"single-cta gated-content\">\n\t<div class=\"single-cta__positioner\">\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<div class=\"single-cta\">\n\t<div class=\"single-cta__positioner\">\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","protected":false},"excerpt":{"rendered":"<p>Agents and businesses need to adhere to Making Tax Digital for VAT. Follow these steps to support clients or set up your business for MTD.<\/p>\n","protected":false},"author":1398,"featured_media":11569,"menu_order":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sage_video":true,"post_featured_image_hide":false,"footnotes":""},"categories":[6,9],"tags":[223,226,29,30,206,27,28],"business_type":[4,115],"lilypad":[],"context":[],"industry":[],"persona":[71,73,74],"imagine_tag":[220,222,142,333,109],"coauthors":[370],"class_list":["post-6314","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-mtd-accountants","tag-mtd-business","tag-need-to-know","tag-tax","tag-vat","business_type-small-business","business_type-accountants"],"sage_meta":{"region":"en-gb","author_name":"Ryan Grundy","featured_image":"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-539434591.jpg","imagine_tags":{"220":"Accountant accounting","222":"Accountant tax","142":"Making Tax Digital for businesses","333":"Making tax digital for VAT","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\/6314","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\/1398"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/comments?post=6314"}],"version-history":[{"count":0,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/posts\/6314\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/media\/11569"}],"wp:attachment":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/media?parent=6314"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/categories?post=6314"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/tags?post=6314"},{"taxonomy":"business_type","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/business_type?post=6314"},{"taxonomy":"lilypad","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/lilypad?post=6314"},{"taxonomy":"context","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/context?post=6314"},{"taxonomy":"industry","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/industry?post=6314"},{"taxonomy":"persona","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/persona?post=6314"},{"taxonomy":"imagine_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/imagine_tag?post=6314"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/coauthors?post=6314"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}