Making Tax Digital (MTD)

Making Tax Digital is modernising tax by shifting taxpayers towards digital record keeping and online tax administration. Going digital makes your taxes more efficient, accurate and easy to manage.

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Making Tax Digital for VAT

Making Tax Digital for VAT is here, but not all businesses are making the most of the digital shift. VAT filing the old-fashioned way is time-consuming and difficult to manage, with lots of potential for errors, particularly for growing businesses.

Gravitate’s digital VAT returns service helps businesses adapt to this shift. We will help you streamline and automate for faster and more accurate calculations, easier record keeping and compliance, and full integration with your existing accounting software.

Get ready for MTD for Income Tax

Self-assessment taxpayers will soon need to submit their returns in accordance with Making Tax Digital. This will be happening gradually, with self-employed individuals and landlords earning more than £50,000 being affected first.

You can learn more about how this might affect you in our MTD for Income Tax blog.

Even if MTD isn’t required until 2026, 2027, or 2028, you may be able to enrol early through a government pilot program. There are a ton of benefits to doing this – you’ll get a head start with the requirements and can make your taxes easier to manage.

More than just compliance. We also help you grow

Confidence in compliance

We will ensure you always meet the key Making Tax Digital requirements, including your digital records and accuracy of data. We will also keep you updated with the latest from HMRC, so you never fall behind with your VAT obligations. We will help you reduce financial risk and prevent penalties.

The latest (and greatest) software

Choosing the right suite of software and tools for your tax and accounts can be overwhelming. Our team of experts will help you select and implement the right HMRC-approved accounting software such as QuickBooks, Xero, Sage, or FreeAgent. We can also train your staff on how to use it most effectively.

Automate calculations, invoices and expenses

We will save you time and stress by introducing the smartest new automation technologies to your VAT treatment. This includes VAT calculations based on real-time transaction data, invoice tracking and expense categorisation, and automatic VAT return submissions to HMRC.

Real-time financial insights

We will provide you with real-time financial insights using the best cloud-based software. This will enable you to monitor VAT liabilities any time, rather than waiting for the end of the month. You will also be able to track cash flow and profits in real time, so you can make data-driven business decisions.

Our Clients Know Best

We love our clients and they love us too, here are a few testimonials from our clients about our services.

"We transitioned over to Gravitate at the start of our 2023/24 financial year... Gravitate are the perfect firm for this! Friendly, knowledgeable and professional, the team speak in my language, as Accounts are foreign to me. They're always there on the end of the phone/whatsapp/email and if one person is out of the office, another picks up the query immediately.They allow me to focus on what I do best, work on and in the business!I could not recommend these guys more in order for you to take better financial control of your business! Great work guys"

Pete Swatkins

"Working with Gravitate has been a breath of fresh air for this side of my business. They immediately got to grips with the way we do things and the transition was smooth. Their culture, values and team spirit is a perfect fit. And they are brilliant with their marketing and brand message."

James Biggin

"I would highly recommend Gravitate Accounting. Since moving to them we've felt that we have much more understanding of the financial side of our business and we've felt that Mike really cares about helping us. Gravitate really focus on the relationship between the accountant and the client and we wouldn't think of going anywhere else. Thank you!"

Stephanie Seddon

Right Choice Mortgages

"Mike and the team have been absolutely amazing in helping me transition from the old spreadsheet accounting to more efficient digital systems. They made the process straight forward and communicate in a way which the layman understands....Thanks! Nick"

Nicholas Riley

Engeniaire

"We've really enjoyed working with Gravitate after moving from a larger Sheffield competitor.We've found the service and the communication absolutely top notch, we couldn't be happier - they've helped us move our business on to the next level."

Ash Young

Evoluted

"Jessica explains everything so clearly, I always feel better after speaking with her. They are pro's at Gravitate with such attention to detail."

Nikki Armytage-Foy

Electric Woman

"I've loved working with the team at Gravitate over the past year or so. Modern accountants that use up-to-date tools that streamline things massively. On top of that, they're helpful, friendly and generally a pleasure to work with. The results show they've got the formula right- they're growing very quickly.I've already recommended them to friends, and wouldn't hesitate to do so again!"

Chris Iverson

FourJaw Manufacturing Analytics

“We actually came across Gravitate when in the process of trying to recruit for a full time FD. Using them was one of the best decisions we've made. They've helped us automate our accounts, and the help during Covid has been beyond what anyone could expect from a supplier. Highly recommended.”

Sean Reddington

Thrive Learning

"I trust Gravitate accounting with all the finance & accounting needs for my business. They take all the stress out of accounting, explain complicated accounting problems very simply, they are very responsive & very easy to communicate with. As well as suggest & integrate apps/ software to make expense claims & invoicing easier; they also always send me a helpful video explaining the details alongside our quarterly reports. I would highly recommend Gravitate to anyone"

Rex Rusling

The Rec Hub

Making Tax Digital FAQs

What is Making Tax Digital (MTD)?

MTD is a UK government initiative designed to digitise tax records and tax return submissions. Under MTD, businesses and individuals will need to use appropriate accounting software to keep records and submit tax returns online.

Who needs to use Making Tax Digital?

The scope of Making Tax Digital is currently limited to VAT-registered businesses, but self-employed individuals and landlords will be enrolled gradually from April 2026. Initially it will be those with annual income of over £50k. From 2027, this will include incomes over £30k, and £20k will be included from 2028.

What software do I need for MTD?

Gravitate will help you select the most appropriate MTD-compatible software for you. The most popular platforms include Xero, Sage, QuickBooks and FreeAgent.

How do I sign up for Making Tax Digital?

First, you will need to be set up with MTD-compatible software. Then you must register for MTD through the HMRC website using your Government Gateway ID. You can then connect your software to HMRC.

What happens if you don’t comply with MTD?

Yes, businesses can reclaim input VAT on a variety of business costs, including travel expenses, office supplies, equipment, services and machinery. VAT can’t be reclaimed on personal expenses of entertainment.

What is the VAT flat rate scheme?

HMRC may issue penalties and fines under the new penalty system based on a points-based system. Repeated non-compliance may lead to fines.

Is anyone exempt from Making Tax Digital?

Certain exemptions may apply if it is not “reasonable or practical” to use software or the internet to manage your taxes. This may be due to age, health conditions or disabilities, your location and internet access. It may also be due to religious beliefs. If you seek exemption, you will need to apply directly through HMRC.

What are the benefits of Making Tax Digital?

Making Tax Digital intends to reduce tax errors, simplify record keeping, ensure compliance with HMRC regulations, and save time. The software can also provide you with real-time tax updates and financial insights, which are useful for making better financial decisions.

Will MTD apply to Corporation Tax?

Making Tax Digital will likely be introduced for Corporation Tax, possibly after 2026. However there have been no official statements confirming this.