Making Tax Digital for VAT-registered businesses

MTD just got serious — are you prepared?

If you're VAT-registered, you're already in the world of Making Tax Digital. But staying compliant — especially as rules evolve — isn't always simple. Many businesses are still bridging with spreadsheets or missing key features.

What's the real issue?

The risks of doing just enough

Being VAT-registered means you're already submitting returns through MTD. But many businesses are still relying on temporary fixes — and those won't cut it forever.

Bridging tools that break when rules change
Spreadsheets prone to human error
No audit trail or broken digital links
Admin headaches when reconciling data

What's the status with MTD?

Making Tax Digital for VAT is now mandatory.

April 2019: MTD for VAT began (for businesses over £85k)
April 2022: All VAT-registered businesses must comply
April 2024: VAT threshold changed to £90k
From 2026: VAT-registered sole traders must start to file new submissions for MTD for Income Tax

What this means:

You must keep digital records
You must use compatible software — no more copy/paste or partial automation
Bridging might not be accepted forever. The clock is ticking.

Not fully digital yet? You risk fines and audit trouble down the line.

There's a better way

Still using workarounds or clunky spreadsheets?

	Paper	Spreadsheets + Bridging	Clear Books
HMRC-recognised		Limited
Full digital links
VAT error checks
Designed for small businesses		Not purpose-built

With Clear Books, you can file MTD returns, manage records, and stay compliant — all in one place.

What to look for in MTD VAT software

Fully HMRC-recognised
Maintains end-to-end digital links
Flags VAT errors before submission
Easy to use and made for small businesses

Why Clear Books is built for VAT-registered businesses

Clear Books is trusted by thousands of UK businesses to keep their VAT records compliant — with no spreadsheets required.

Submit MTD VAT returns in minutes
Maintain full digital links from invoice to return
Built-in VAT checks to reduce errors
Works on desktop and mobile
Free plan available for small businesses

Rated “Excellent” on Trustpilot — join the businesses that made the switch.

Two MTD rules. One account. No extra hassle.

Are you a sole trader who's already VAT-registered? From April 2026, you'll need to follow MTD for Income Tax too.

Instead of juggling multiple tools or accounts, Clear Books handles both MTD for VAT and MTD for Income Tax — in one simple system.

Keep digital records for your business income and VAT
Submit VAT returns and quarterly income tax updates from the same place
Use on desktop or mobile — wherever you work
HMRC-recognised for both VAT and Income Tax

Whether you do your own books or work with an accountant, Clear Books keeps you compliant — now and in the future.