Corporation tax, VAT and filing

Does Making Tax Digital for VAT apply to overseas-owned companies?

Yes, MTD for VAT applies to every UK VAT-registered business, whatever the location of its directors, with no residence-based exemption.

Short answer

Yes. Making Tax Digital for VAT requires digital records and VAT-compatible software for every VAT-registered business, with no exemption based on director or shareholder residence. Overseas owners use exactly the same MTD software as UK-based ones, run from any location with an internet connection.

Written and reviewed by Waqas Sagar Member of ICAEW, Fellow of ACCA, Fellow of AAT, a double graduate and entrepreneur at heart, helping startups grow and serving thousands of businesses nationwide with an excellent team. Published by LimitedCompany.Accountants, 12 London Road, Morden, London SM4 5BQ. Reviewed 12 September 2026 against 2026/27 UK rates and current Companies House and HMRC guidance.

What this means for your company

Yes. Making Tax Digital for VAT requires digital records and VAT-compatible software for every VAT-registered business, with no exemption based on director or shareholder residence. Overseas owners use exactly the same MTD software as UK-based ones, run from any location with an internet connection.

01

What has to be digital

02

Where overseas owners go wrong

What has to be digital

VAT records must be kept in digital form and submitted through MTD-compatible software; spreadsheets are allowed only when linked to bridging software rather than manually retyped into HMRC's portal. Overseas bookkeepers or accountants working remotely can maintain this just as a UK-based one would.

Cloud accounting software such as Xero or QuickBooks works identically wherever the user is logged in from, so there is no practical barrier to running MTD-compliant bookkeeping from abroad.

Where overseas owners go wrong

The common failure is not MTD itself but the underlying records: bank statements, invoices and receipts scattered across personal accounts and messaging apps rather than a single system, because the owner is managing the business informally from abroad.

Setting up a dedicated business bank feed into the accounting software from day one avoids the year-end scramble to reconstruct records that were never centralised.

What this costs with us

Our fixed monthly packages for a UK limited company start at £89 plus VAT and run to £169 and £289 plus VAT as bookkeeping, VAT, payroll and reporting are added. One-off filings are sold at fixed prices, and the Companies House fees we pay for you are charged at cost with no VAT added. Overseas owners are quoted on exactly the same published prices as UK-resident clients.

Before you act

Rates, thresholds and deadlines here reflect the 2026/27 UK position and current Companies House and HMRC guidance. Check GOV.UK, or ask us, before relying on them for your own company.

Primary references

Official sources and further reading

Related answers

More on corporation tax, vat and filing

Every answer in this cluster is written for UK limited company directors and reviewed against current HMRC and Companies House guidance.

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Talk to a limited company accountant near you

We work with company directors across London and Surrey from our office at 12 London Road, Morden, London SM4 5BQ. Pick your area, or send the form below and we will call you back.

Frequently asked

Does Making Tax Digital for VAT apply to overseas-owned companies?: questions directors ask

Is there an exemption for very small overseas-owned companies?

Only the same limited digital exclusion exemptions available to any UK business, unrelated to owner residence.

Can I submit VAT returns myself from abroad?

Yes, through MTD software or an agent filing on your behalf.

Does MTD apply before I am VAT registered?

No, it only applies once VAT registration is in place.

What records are needed for does making tax digital for vat apply to overseas-owned companies?

Keep bank statements, sales and platform reports, purchase invoices, payroll records, VAT workings, finance agreements and Companies House correspondence. We confirm the exact list at onboarding and identify gaps before a filing deadline becomes urgent.

How much does help with does making tax digital for vat apply to overseas-owned companies cost?

The fee depends on transaction volume, record quality, VAT and payroll requirements, historic catch-up and the level of reporting needed. We agree a fixed scope and price before technical work starts, with published packages available on our fees page.

Can you take over does making tax digital for vat apply to overseas-owned companies from another accountant?

Yes. We request professional clearance, collect the prior records and authorities, check the next Companies House and HMRC deadlines, and give you one clear handover list. The process is normally completed remotely.

Can does making tax digital for vat apply to overseas-owned companies be handled online?

Yes. We work through secure cloud records, scheduled reviews and digital approvals, while keeping a named team available by phone, video call and email. Clients can also visit our Morden office by appointment.

Which accounting software works best for does making tax digital for vat apply to overseas-owned companies?

We regularly work with Xero, QuickBooks, FreeAgent, Sage and connected sales or expense apps. The right setup depends on transaction volume, integrations and the reports you need, not simply the software brand.

What tax deadlines matter for does making tax digital for vat apply to overseas-owned companies?

The relevant calendar may include annual accounts, Corporation Tax payment and return dates, confirmation statements, VAT returns, payroll submissions and Self Assessment. We map the dates from your company year end and registrations.

Can I get free basic tax advice about does making tax digital for vat apply to overseas-owned companies?

Yes. You can ask a straightforward initial question without charge. Calculations, filings, written advice, planning and HMRC correspondence are scoped and quoted before work begins.

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