Making Tax Digital VAT UK —
MTD Compliant From Day One
Full Making Tax Digital for VAT compliance — digital records, digital links, approved software setup, quarterly submissions via HMRC API and MTD for Income Tax (ITSA) preparation. ACCA qualified. Fixed fee. Zero MTD penalty points.
Making Tax Digital — What You Must Do & When
Making Tax Digital is HMRC’s programme to move the UK tax system to a fully digital basis. MTD for VAT has been mandatory for all VAT-registered businesses since April 2019. MTD for Income Tax (ITSA) is being extended to sole traders and landlords from April 2026 — requiring quarterly digital submissions rather than a single annual return.
MTD for VAT — mandatory for all VAT-registered businesses since April 2019. Requires: digital records of every VAT transaction, a digital link connecting source records to VAT return figures (no manual transcription), and VAT return submission via HMRC’s API using approved software. Businesses using spreadsheets must use bridging software to create the required digital link.
MTD for Income Tax (ITSA) — from April 2026 for sole traders and landlords with qualifying income above £50,000; from April 2027 above £30,000. Requires quarterly income and expense submissions to HMRC using approved software — replacing the annual Self Assessment return. We are already preparing all eligible clients for this change — those who act now have the smoothest transition.
Non-compliance with MTD carries HMRC penalties — the new points-based penalty system applies from one day late. Each late submission earns a point; 4 points triggers a £200 financial penalty, with further £200 penalties for each subsequent submission at the maximum points level. Points expire after 24 months of full compliance. We ensure zero penalty points for every client.
✅ What’s Included
- ✓ MTD VAT compliance assessment
- ✓ HMRC-approved software setup
- ✓ Digital records implementation
- ✓ Digital links verification
- ✓ Bank feed automation
- ✓ Quarterly VAT return via MTD API
- ✓ Bridging software (where needed)
- ✓ MTD ITSA preparation & planning
- ✓ Quarterly ITSA updates (from 2026)
- ✓ HMRC MTD correspondence handled
- ✓ MTD exemption applications (if applicable)
- ✓ MTD penalty points monitoring
Our Process — Step by Step
Which Businesses Need This Service?
All VAT-Registered Businesses
MTD for VAT is mandatory for every UK VAT-registered business — no exceptions. If you’re VAT registered and not using approved MTD software, you are already non-compliant and at risk of penalties.
Sole Traders & Landlords (from 2026)
MTD ITSA begins April 2026 for qualifying income above £50,000. Preparation now means a smooth transition — waiting until 2026 risks missed deadlines and a rushed, disruptive changeover.
Spreadsheet Users
VAT-registered businesses using spreadsheets must use bridging software to satisfy MTD digital link requirements. We set up the correct bridging solution or migrate to full cloud accounting — whichever suits your workflow.
New Business Owners
Setting up on MTD-compliant software from day one is far simpler than migrating later. We configure all new Britvex clients on HMRC-approved MTD software during onboarding.
4 Costly Mistakes — And How Britvex Prevents Them
Manually transcribing figures from a spreadsheet into MTD software breaks the digital link requirement. HMRC requires an unbroken digital chain from source records to VAT return — manual transcription at any point is non-compliant. Use automated data transfer or HMRC-approved bridging software.
The old HMRC VAT online service was closed to most businesses in April 2022. Filing via the old portal is non-compliant. Every VAT return must now be submitted via MTD-compatible software connected to HMRC’s API.
MTD requires digital records of every individual VAT transaction — not just quarterly totals. Keeping only summary figures does not meet HMRC’s digital record-keeping requirements. We ensure your records satisfy the transaction-level digital record requirement.
MTD ITSA requires quarterly digital reporting — a fundamental change from annual Self Assessment. Businesses waiting until April 2026 will be making this transition under pressure. We recommend starting digital income and expense recording now to build the habit before the deadline.
Making Tax Digital VAT — Common Questions
Yes — MTD for VAT applies to all UK VAT-registered businesses, regardless of size or turnover. This includes businesses voluntarily registered below the £90,000 threshold. If you are VAT registered and not filing via MTD-compatible software, you are non-compliant and at risk of HMRC penalties.
A digital link is a transfer or exchange of data that is made electronically — without any manual transcription. Acceptable digital links include: automated data import between software packages, copy-paste between cells within the same spreadsheet, and approved bridging software that reads data from your source and submits to HMRC. Simply entering figures manually into MTD software is NOT a digital link and is non-compliant.
We work with all HMRC-approved MTD software including Xero, QuickBooks, Sage, FreeAgent and BrightPay. For clients who prefer to keep spreadsheets, we use approved bridging software (Absolute VAT Filer, Xero’s bridging module). We recommend and configure the right solution for each client’s specific workflow.
MTD ITSA requires sole traders and landlords to submit quarterly income and expense updates to HMRC using approved software, replacing the annual Self Assessment return. It starts April 2026 for qualifying income above £50,000, and April 2027 above £30,000. A final year-end declaration replaces the current SA return. We are preparing all eligible clients now.
The new points-based penalty system: each late submission earns one penalty point. When points reach 4 (annual filers — 2 points, quarterly filers — 4 points), a £200 financial penalty is charged. Each subsequent late submission while at maximum points triggers a further £200 penalty. Points expire after 24 months of full compliance. Additionally, failure to keep digital records is subject to separate penalties.
Fixed Fees — No Surprises
All fees fixed and agreed upfront. Book a free consultation for your exact quote.
All include: ACCA qualified · HMRC agent · client portal · 2-hour response guarantee.
Complete Your Tax Package
MTD Compliant — From Day One
Book a free consultation. We’ll review your current MTD position, set up approved software and ensure full compliance — zero risk of HMRC MTD penalty points.