Making Tax Digital: keeping digital VAT records with billing software
Making Tax Digital (MTD) for VAT requires every VAT-registered UK business to keep digital records and submit VAT returns through software that connects to HMRC. Billing Software by Betterwork keeps the digital sales records (invoices, VAT per line, credit notes) and exports them digitally to the MTD-compatible software your accountant uses to file; it is not itself a VAT-return filing tool.
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What MTD for VAT requires
- Keep VAT records digitally: sales and purchase invoices, VAT rate and amount per transaction
- Submit VAT returns through MTD-compatible software connected to HMRC, not by typing figures into the HMRC website
- Keep "digital links" between records and the return: no retyping between systems
- All VAT-registered businesses are in scope, regardless of turnover
Where billing software fits
- Betterwork records every sales invoice with VAT per line and keeps credit notes linked, so the sales side of your records is digital from the start
- Exports go to your accountant's MTD filing software as a digital file, satisfying the digital-link rule
- Filing itself happens in HMRC-recognised MTD software; ask your accountant which they use