Making Tax Digital for VAT


Frequently asked questions - MTD

What is Making Tax Digital for VAT?

Do I need to submit VAT returns by Making Tax Digital?

Is VT Software Making Tax Digital for VAT compatible?

What VAT records need to be kept digitally?

What are digital links?

Is there a turnover threshold for Making Tax Digital for VAT?

How do I register for Making Tax Digital for VAT?

How do I set up Making Tax Digital for VAT?

How do I submit a VAT return to HMRC?

Can I submit a VAT return by Making Tax Digital from an Excel spreadsheet?

Is there a free trial of VT Software?

What are the prices of VT Software?

How can I purchase VT Software?

Is Making Tax Digital required for other taxes?

What is Making Tax Digital for VAT?

Making Tax Digital for VAT is the requirement to keep VAT records digitally and submit VAT returns to HMRC using MTD for VAT compatible software.

More information can be found on the gov.uk page Making Tax Digital for VAT.

Do I need to submit VAT returns by Making Tax Digital?

If you are a VAT registered business, you are legally required to keep certain VAT records digitally and file VAT returns using MTD for VAT compatible software.

Is VT Software Making Tax Digital for VAT compatible?

Yes. MTD VAT returns can be submitted from the bookkeeping software (VT Transaction+ or VT Cash Book), or from an Excel spreadsheet using the VT MTD for Excel add-in. These applications are MTD for VAT compliant and are HMRC recognised.

What VAT records need to be kept digitally?

The gov.uk page Keeping VAT records provides details of all VAT records that must be kept, and those that must be kept digitally.

What are digital links?

A digital link is an electronic exchange or transfer of data. Digital links must exist between the components of your system for digital VAT record keeping and submitting MTD VAT returns.

For details on fulfilling the digital links requirement, see digital links.

Is there a turnover threshold for Making Tax Digital for VAT?

No. Since April 2022, all VAT registered businesses have been legally required to keep certain VAT records digitally and submit VAT returns by MTD.

How do I register for Making Tax Digital for VAT?

If you are a VAT registered business, you will already have been registered for MTD for VAT. New VAT registrations will automatically be registered for MTD for VAT.

How do I set up Making Tax Digital for VAT?

In either VT Transaction+, VT Cash Book or VT MTD for Excel, you need to 'grant authority', which allows the programs to interact electronically with HMRC. This needs to be done once every 18 months. You will need your Government Gateway user ID for this process.

If you are an agent, you also need to obtain authorisation from your clients to act on their behalf by following HMRC's 'digital handshake' process.

To grant authority see Setting up MTD for VAT - Businesses, or Setting up MTD for VAT - Agents if you are an agent using an Agent Services Account.

How do I submit a VAT return to HMRC?

Once you have entered transactions in the bookkeeping software (VT Transaction+ or VT Cash Book), you can run a VAT return and submit it to HMRC in a few easy steps. For details, see How to submit a VAT return by MTD.

Alternatively, you can prepare your VAT return on an Excel spreadsheet (provided it satisfies HMRC's digital links requirements) and submit it to HMRC using the VT MTD for Excel add-in. For details, see VT MTD for Excel.

Can I submit a VAT return from an Excel spreadsheet?

You can submit a VAT return prepared in an Excel spreadsheet provided it satisfies HMRC's digital links requirements.

The VT MTD for Excel add-in can be used to submit a VAT return to HMRC directly from an Excel spreadsheet. For details see VT MTD for Excel.

Is there a free trial of VT Software?

All of VT Software's products have a 60 day free trial period which includes full MTD for VAT functionality. After the free trial, a subscription is required to continue using the software.

What are the prices of VT Software?

Current subscription prices can be found on the Prices page. Each package includes MTD for VAT functionality, which allows unlimited VAT returns to be submitted to HMRC.

If you are an agent using an 'agent services account' to submit VAT returns on behalf of clients, a full VT Accounts subscription is required even if you only use VT Transaction+/VT Cash Book.

How can I purchase VT Software?

Is Making Tax Digital required for other taxes?

From April 2026, MTD for Income Tax and Self Assessment (MTD for ITSA) is required for self-employed individuals and landlords with annual income over 50,000. This date has been pushed back from April 2024. The annual income threshold will reduce to 30,000 from April 2027.

MTD for ITSA will require quarterly returns of income and expenditure to be submitted digitally to HMRC, plus a final declaration at the year end. VT Software will implement functionality to enable submission of the quarterly returns.

For more details on MTD for ITSA see the gov.uk website.