Making Tax Digital for VAT is already live for VAT-registered businesses in the UK. Since 1 April 2022, those businesses must keep digital VAT records and submit VAT returns using compatible software, not the old online form alone.
This guide is general information based on published HMRC material, including VAT Notice 700/22 and the Making Tax Digital for VAT collection on GOV.UK. Your scheme, exemptions and software choices still need a human check.
Cashwatch™ keeps VAT bills in the same 13-week cash view as receipts and payroll, so the return deadline does not arrive as a surprise. YearReady™ helps you keep the underlying books tidy. Alfred prepares. A qualified professional signs off anything regulated.
Who must follow Making Tax Digital for VAT
From 1 April 2022, Making Tax Digital for VAT applies to VAT-registered businesses, including those below the VAT registration threshold. HMRC has said all VAT-registered businesses should now be signed up, and that remaining businesses are signed up automatically. New VAT registrations are generally brought into Making Tax Digital unless an exemption applies.
Exemptions exist in limited cases (for example digital exclusion). If you think you may be exempt, check current GOV.UK guidance on applying for an exemption and speak to your accountant.
What you must do in practice
Keep digital VAT records for the information HMRC requires under Making Tax Digital.
Use compatible software (or bridging software) to submit VAT returns to HMRC.
Keep digital links where your records move between programs, so figures are not retyped by hand.
Meet your usual return and payment deadlines. Making Tax Digital changes how you file, not the calendar of when VAT is due.
HMRC publishes a list of software compatible with Making Tax Digital for VAT. Ask Alfred™ is not a substitute for that filing software. Alfred helps you see cash and readiness earlier; submission still goes through your compatible process and human approval.
Deadlines: what does not change
Most businesses still file quarterly. The usual pattern is one calendar month and seven days after the VAT period ends (for example, a period ending 31 March is typically due by 7 May). Confirm your stagger and any monthly or annual scheme with your accountant. Payment dates can differ from the return deadline.
How this differs from Making Tax Digital for Income Tax
Making Tax Digital for VAT is already mandatory for VAT-registered businesses. Making Tax Digital for Income Tax is a separate regime for many sole traders and landlords, with phased thresholds from April 2026. Do not mix the two. See Making Tax Digital for Income Tax 2026.
A practical readiness checklist
- Confirm you are signed up for Making Tax Digital for VAT (or that HMRC has signed you up).
- Confirm your software (or bridging tool) is on HMRC's compatible list.
- Diary the next return deadline and the cash needed to pay any VAT due.
- Reconcile sales, purchases and the VAT control account before the period closes.
- Review the draft nine-box figures with your accountant before submission.
What to read next
- VAT return checklist
- Making Tax Digital for Income Tax 2026
- 13-week cash flow forecasting explained
- Tax prepFinancialsCustomersVendorsInboxReportsReconciliationsPartner consoleSchedulesAssetsProposalsInvoicesBillsContacts
- Cashwatch™
- Glossary
- All guides
This page is general information for UK businesses. Prefer current GOV.UK guidance for your obligations. Nothing here is regulated advice, and nothing regulated should be submitted without a human approval from a qualified professional.