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Xero - Making Tax Digital

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What is Making Tax Digital?

Making Tax Digital (MTD) is changing the way UK businesses, accountants and bookkeepers do their taxes. Find out what this means for you and learn how Xero can help you become MTD-compliant.


What is Making Tax Digital?

Making Tax Digital is an HMRC initiative designed to make sure the UK tax system is effective, efficient and easier for taxpayers.

Making Tax Digital for VAT makes it mandatory for VAT-registered businesses above the £85k threshold to keep records and submit VAT returns digitally using HMRC-recognised MTD software like Xero.

The Government confirmed in July that Making Tax Digital will be extended to include all VAT-registered businesses from April 2022 and for income tax from April 2023.

Become compliant with Xero’s Making Tax Digital software

It’s HMRC-recognised and available in all Xero plans that support VAT.


Frequently asked questions

Gain a greater understanding of Making Tax Digital with these FAQs – and answers.

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Learn about Making Tax Digital in Xero

Find out more on how to set up Making Tax Digital for VAT in Xero.

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