VAT MTD Explained for Small Businesses

VAT Making Tax Digital is about keeping VAT records digitally and using compatible processes to prepare VAT return information.

What MTD usually means in practice

You need organised digital records for:

• sales invoices
• purchase invoices and receipts
• VAT rates
• adjustments
• VAT return totals
• evidence for review

Review before submission

Do not rely on automation without checking. Confirm sales, expenses, VAT treatment and any adjustments before submitting anything to HMRC.

Records LedgerlyPro helps organise

• Invoices
• Expenses
• receipt uploads
• CSV/Excel imports
• VAT summaries
• accountant review packs

For more detail, read the MTD bookkeeping software guide.

Try LedgerlyPro free or use the VAT calculator.