Making Tax Digital (MTD) for VAT is a HMRC initiative introduced in April 2019. It is designed to modernise the UK tax system and make it easier for businesses to manage their VAT obligations. Under MTD for VAT, all VAT-registered businesses with a taxable turnover above £85,000 must keep digital records and submit their VAT returns using HMRC-compatible software. The goal is to reduce errors, improve accuracy, and ensure smoother communication between businesses and HMRC. By switching to digital VAT record keeping, companies can enhance efficiency, save time, and maintain full compliance with current UK tax regulations.
For businesses that still use spreadsheets to manage their VAT figures, MTD bridging software offers a simple and compliant solution. Bridging software such as Easy MTD connects spreadsheets directly to HMRC’s online systems, allowing VAT returns to be submitted digitally without changing the existing record-keeping process. This makes it ideal for businesses that want to meet Making Tax Digital requirements while continuing to use familiar spreadsheet tools like Excel, Google Sheets and OpenOffice Calc.
Whether you use dedicated MTD-compliant accounting software or a bridging solution like Easy MTD, ensuring your system aligns with Making Tax Digital for VAT rules is essential to stay compliant and avoid HMRC penalties.