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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. Staying compliant as the rules evolve isn't always simple.

Try Clear Books free for VAT businesses → Check MTD VAT status
What's the real issue?

Compliance isn't the same as "we file VAT".

Plenty of businesses are submitting VAT returns through tools that quietly fall short of the digital-link rules. The risks add up.

Bridging tools that break

Bridging spreadsheets work, until HMRC tightens the screws or your columns shift.

Spreadsheet errors

Wrong cell reference, broken formula, off-by-one row, and your VAT return goes out wrong.

Broken digital links

Copy-paste between systems is exactly what MTD's digital-link rules are designed to remove.

Reconciliation headaches

Hours every quarter chasing the difference between your books and the return you actually filed.

What's the status with MTD?

Making Tax Digital for VAT is now mandatory.

Every VAT-registered business in the UK has to keep digital records and submit VAT returns through MTD-compatible software.

Apr 2019
MTD for VAT began (over £85k)
Mandatory
Apr 2022
All VAT-registered businesses must comply
Apr 2024
VAT registration threshold rose to £90,000
Apr 2026
VAT-registered sole traders also started MTD for Income Tax

What you still need to do

  • Keep digital VAT records, not just digital invoices
  • Use HMRC-compatible software, with no manual re-keying
  • Maintain full digital links between source records and the return
  • Keep those digital links unbroken, from source record to submission

MTD requires unbroken digital links from your records through to your return, something bridging setups can struggle to maintain.

  • Digital records Source data stored digitally from the start
  • Digital links No copy-paste between systems
  • Digital submission Filed via HMRC recognised software
There's a better way

Paper, bridging spreadsheets, or proper MTD software?

Paper Spreadsheets + bridging Clear Books
HMRC recognised for MTD ✕ ✕ ✓
End-to-end digital links ✕ ✕ ✓
Built-in VAT error checks ✕ ✕ ✓
Future-proof against rule changes ✕ ✕ ✓
One tool for VAT & Income Tax ✕ ✕ ✓
Shopping list

What to look for in MTD VAT software.

Fully HMRC recognised

On HMRC's official list of MTD-compatible software, for VAT and the rest of your tax stack.

Digital links, end-to-end

From invoice to return without a single copy-paste step.

Check before you submit

Review your VAT return figures before they go to HMRC, so you can fix anything that looks off.

Friendly for small teams

MTD compliance without the complexity.

Why Clear Books

Built for VAT-registered businesses, not legacy stacks.

Submit MTD VAT returns in minutes, and keep a clean digital trail from invoice to return, every quarter.

  • Submit MTD VAT returns in minutes
  • Maintain full digital links from invoice to return
  • Built-in VAT checks to reduce errors before filing
  • Works on desktop and mobile, with the same data everywhere
  • Add MTD for Income Tax when you need it, no second tool
Try Clear Books free for VAT businesses → Explore VAT features
An MTD VAT return in Clear Books ready to submit to HMRC
Q3 VAT return submitted
HMRC recognised
For VAT-registered sole traders

Two MTD rules. One account. No extra hassle.

Since April 2026, sole traders who are also VAT-registered have both MTD for VAT and MTD for Income Tax to keep on top of. Clear Books does both from the same login.

Try Clear Books free for VAT-registered sole traders →
Common questions

MTD VAT FAQ.

Do I have to be on MTD for VAT?
Yes, since April 2022, every VAT-registered business in the UK has had to keep digital records and submit VAT returns through MTD-compatible software.
I use a bridging spreadsheet, am I compliant?
Yes, for now, as long as you keep unbroken digital links from your records through to your return, something bridging spreadsheets often quietly miss. Full software keeps those links intact automatically.
What's the current VAT threshold?
The compulsory VAT registration threshold has been £90,000 since April 2024. Voluntary registration below the threshold is common and brings the same MTD obligations.
I'm a VAT-registered sole trader, what changed in 2026?
Since April 2026 you also need MTD for Income Tax if your gross income is over £50,000. With Clear Books you'd handle both from a single account.
Is Clear Books HMRC recognised?
Yes, for both MTD VAT and MTD for Income Tax Self Assessment.
Future-proof your VAT setup

Switch to MTD VAT done properly.

Migrate in under a day. Keep the digital trail HMRC expects. Send your next return without holding your breath.

Try Clear Books free → Back to MTD overview