Short answer
Yes. Every VAT registered business, whatever its turnover, must keep digital VAT records and submit returns through MTD compatible software. Typing figures into the old HMRC portal is no longer available.
VAT
Do I need to be on Making Tax Digital for VAT?
All VAT registered businesses must keep digital records and file through compatible software. What counts as a digital link and what the penalties are.
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.
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QuickBooks PartnerCertified ProAdvisor100+ yearsCombined team experienceFully insuredUp to £2m indemnityWhat this means for your company
Yes. Every VAT registered business, whatever its turnover, must keep digital VAT records and submit returns through MTD compatible software. Typing figures into the old HMRC portal is no longer available.
01
What compliance actually requires
02
Beyond VAT
What compliance actually requires
Digital records of every sale and purchase with date, net value and VAT rate, held in software or a spreadsheet, and a digital link from those records through to the return. Copying and pasting between spreadsheets breaks the link; bridging software or formula-linked cells do not.
Xero, QuickBooks, FreeAgent, Sage and bridging tools all qualify. The cheapest compliant route for a very small business is a spreadsheet plus bridging software, but full bookkeeping software usually pays for itself in time saved.
Beyond VAT
Making Tax Digital for Income Tax is being phased in for sole traders and landlords by income level, starting with the highest, and will require quarterly updates. Company directors with rental or self-employed income should plan for it even though companies themselves are not in scope yet.
Getting bookkeeping into software now means the later transition is a settings change rather than a project.
Before you act
Rates, thresholds and deadlines quoted 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.
Local help
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
Do I need to be on Making Tax Digital for VAT?: questions directors ask
Can I still use spreadsheets?
Yes, with bridging software and unbroken digital links.
Are there exemptions?
Limited ones, for example on grounds of age, disability, remoteness or religious belief, applied for individually.
What are the penalties?
The points based late filing regime applies, and record keeping failures can be penalised separately.
What records are needed for do i need to be on making tax digital for vat?
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 do i need to be on making tax digital for vat 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 do i need to be on making tax digital for vat 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 do i need to be on making tax digital for vat 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 do i need to be on making tax digital for vat?
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 do i need to be on making tax digital for vat?
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.
Is this do i need to be on making tax digital for vat guidance personal tax advice?
No. This page explains general UK rules and common accounting treatment. Your facts, contracts and wider tax position must be reviewed before you rely on a conclusion.
Included approach
Organised, explained, on schedule.
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Check the current rules
Use official information as your reference point.
Deadlines, thresholds and filing rules change. GOV.UK and Companies House publish the current statutory position; advice should then be applied to your company’s circumstances.