Making Tax Digital - FreeAgent has you covered
File your next VAT return on a 30-day free trial of our award-winning, HMRC-recognised accounting software for small businesses.
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What is Making Tax Digital?
All UK businesses with VATable sales above the VAT threshold (currently £85,000) need to store digital records and submit VAT updates to HMRC using MTD-compatible accounting software. Even if you’re already using accounting software to file VAT digitally, you still need to change the way you submit your return to HMRC.
What do you need to do?
If you haven’t started preparing your business for digital VAT filing yet, you need to:
- Sign up to FreeAgent
- Register for Making Tax Digital for VAT on HMRC’s website
- Get your business’s accounts ready to file
- Connect your FreeAgent account to HMRC’s Making Tax Digital service
- File your business’s first MTD VAT return
Registering for HMRC’s new Making Tax Digital service can take up to seven working days to complete so we recommend that you get going as soon as you can.
How to get your business set up for Making Tax Digital for VAT
Discover how easy it really is to file digital VAT from FreeAgent in this short video.
When's it happening?
Check the timeline to find out when Making Tax Digital will affect you.
April 2021
All VAT returns submitted through accounting software must be sent via the software’s MTD connection.
April 2022
VAT-registered businesses with VATable sales below £85,000 must follow MTD rules.
April 2024
HMRC will introduce MTD for Income Tax Self Assessment.
2026 onwards
HMRC will seek to introduce MTD for Corporation Tax.
How FreeAgent can help
FreeAgent’s powerful automation features can help you get your accounts in order for digital VAT filing with minimal hassle. Our Open Banking bank feeds automatically backfill your account with historical bank transactions, saving you time as you prepare to file your first digital VAT return.
Once you’ve set up for digital VAT filing and your accounts are in order, FreeAgent will automatically generate your MTD VAT return and allow you to submit it directly to HMRC with the click of a button.
MTD for small businesses
Making Tax Digital software explained
Find the best Making Tax Digital software for your business.
Preparing for MTD for VAT in FreeAgent
Make the transition to MTD as pain-free as possible by following these steps to prepare your accounts.
MTD for VAT penalties
Find out what penalties you might face if you fail to comply with the new legislation.
Making Tax Digital: what does it mean for you?
Read our overview of the MTD initiative and discover how it will affect your business.
A guide to Making Tax Digital for Income Tax Self Assessment
Learn what's changing under MTD for ITSA and find out what the new rules mean for you.
Making Tax Digital on the FreeAgent blog
Follow the latest MTD news on our blog for small businesses and freelancers.
MTD for accountants
Free MTD consultation
Take a free 30‑minute consultation with an MTD expert.
MTD Express pack
Everything you need to get your clients sorted for MTD for VAT in double-quick time.
How to get set up for MTD for VAT
Find out all the steps you need to take to get your practice and clients ready for MTD for VAT.
Guide your clients through Making Tax Digital
Introduce your small business clients to MTD with this free handout.
Prepare your practice for MTD for VAT
Find out how to make the most of the opportunity presented by the new legislation.
MTD for ITSA: 10 myths busted
We dispel some of the myths that currently surround the initiative.
Rebecca Chivers
Thank you for making the process utterly painless 🙌🏻🙌🏻 #MTD
12:48 PM - 1 Apr 2019
Chris Blunt
First VAT return filed via #MTD 🎉. Thanks @freeagent for making it super easy (the new VAT report screen is great too! 👍
12:02 PM - 11 Jun 2019
Catherine Ferguson
Just updated our VAT on @freeagent to #MakingTaxDigital. Easy peasy! Thank You 😊
01:10 PM - 7 Mar 2019
