Making Tax Digital:

If you run a VAT-registered business in the UK, you’ve probably heard about Making Tax Digital (MTD). It’s not just another bit of red tape — it’s a major shift in how businesses handle their taxes.

MTD is HMRC’s push to modernise the tax system. Instead of paper records or clunky spreadsheets, businesses now need to keep digital records and use approved software to submit VAT returns. The idea is to reduce errors, save time, and make life easier for everyone.

Originally, MTD only applied to businesses earning above the VAT threshold. But as of April 2022, it’s been extended to all VAT-registered businesses, no matter how big or small. So if you haven’t made the switch yet, now’s the time.

Here’s what you need to do:

• Keep your VAT records digitally (no more handwritten ledgers!)

• Use MTD-compatible software

• Submit your VAT returns through that software, not the old HMRC portal

It might sound daunting, but there are real benefits. You’ll spend less time chasing paperwork, make fewer mistakes, and get a clearer picture of your finances. Plus, HMRC has published guidance to help you figure out when to submit your first return under MTD.

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At QABC, we make Making Tax Digital (MTD) easy to understand and even easier to implement. Whether you're a sole trader, landlord, or small business owner, we’ll make sure you’re not just compliant — but confident.