Making Tax Digital for VAT checklist: Get up to speed with MTD VAT – Swift VAT Pro advice UK
This comprehensive checklist can help you understand the latest HMRC requirements for Making Tax Digital, whether you're a small business, an accountant, or a VAT-registered entity.
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What is the Making Tax Digital checklist?
Making Tax Digital is now mandatory for most VAT-registered businesses in the UK. The HMRC requires companies to maintain digital records and submit VAT returns using approved MTD VAT software.
A Making Tax Digital checklist helps businesses and accountants ensure every step is covered. It reduces errors, prevents penalties, and ensures compliance with all digital filing requirements.
The checklist is not just about filing VAT. It covers registration, software selection, record-keeping, and audit trails. Using it ensures you meet compliance requirements efficiently.
Why UK MTD VAT compliance matters?
Key reasons to follow the checklist:
- Avoid late filing penalties
- Maintain a complete digital audit trail
- Reduce manual calculation errors
- Stay ready for HMRC inspections
- Ensure your software fully supports digital submission
Compliance is not optional. HMRC increasingly prioritises accurate digital records. Businesses that prepare in advance reduce risks and save time.
The 7-Step MTD VAT checklist for businesses
1. Confirm if your business must comply
Check these points:
- Are you VAT-registered?
- Does your taxable turnover exceed £90,000 per year?
- Are you still submitting returns manually or using Excel?
If yes, digital filing is mandatory. It may soon be necessary for smaller businesses to comply, so that early planning will be beneficial.
Check these points:
- Are you VAT-registered?
- Does your taxable turnover exceed £90,000 per year?
- Are you still submitting returns manually or using Excel?
If yes, digital filing is mandatory. It may soon be necessary for smaller businesses to comply, so that early planning will be beneficial.
It’s crucial to choose software that complies with HMRC regulations. To submit directly, look for the HMRC API connection.
- One-click filing of VAT returns
- Calculations of VAT in real time
- Secure data storage and a complete audit trail
- Notifications of deadlines for every VAT period
- Multi-company or multi-account support
Swift VAT Pro meets all these requirements and is designed for UK freelancers, small businesses, and accounting firms.
3. Keep records fully digital
4. Register for MTD with HMRC
A separate MTD registration is necessary even if you are already VAT-registered:
- Use your Government Gateway ID to log in.
- Give your business type and VAT number.
- Make a list of the software you plan to use.
- Await confirmation from HMRC (up to 72 hours)
Software such as Swift VAT Pro allows returns to be submitted straight to HMRC after approval.
5. Know your VAT filing deadlines
| VAT Period Ends | Filing Deadline | Notes |
|---|---|---|
| 31 March 2025 | 7 May 2025 | Past period |
| 30 June 2025 | 7 August 2025 | Past period |
| 30 September 2025 | 7 November 2025 | Current period |
| 31 December 2025 | 7 February 2026 | Upcoming |
| 31 March 2026 | 7 May 2026 | Next cycle |
6. Submit VAT returns using MTD software
Procedures for filing:
- Open the MTD VAT software.
- Verify the return amounts.
- Perform a last compliance check.
- Use the HMRC API to submit.
- Keep a record of the confirmation.
7. Maintain a digitally linked audit trail
Records must be traceable from the point of beginning to the point of submission, according to HMRC. Important points:
- No copying and pasting between spreadsheets manually
- Every update should be traceable.
- Software must seamlessly connect transactions, invoices, and VAT returns.
A comprehensive digital trail streamlines audits and avoids compliance problems.
Common mistakes businesses make with MTD
- Spreadsheets rather than authorised digital software
- Not receiving enough reminders to meet filing deadlines
- Choosing software without obtaining HMRC API approval
- Not keeping records for six years
These mistakes can be avoided by following the checklist.
Why Swift VAT Pro simplifies MTD compliance
- Fully HMRC-approved
- Easy to set up and requires no installation
- Designed for beginners
- Real-time error detection
- Multi-business support
- Plans with adjustable prices
Take control of Making Tax Digital now
MTD is mandatory and evolving. Following a Making Tax Digital checklist ensures your business remains compliant.
With Swift VAT Pro, you can:
- Submit VAT returns on time
- Reduce errors
- Maintain a complete digital audit trail
- Stay HMRC-compliant
Start using a trusted solution today to stay prepared for every VAT filing period.
Frequently Asked Questions:
Your Questions – Answered ,We’re here to help you with anything VAT-related.
1. Do I need to follow the MTD VAT checklist even if my business is small?
Yes. While MTD currently applies to businesses with taxable turnover above £90,000, following the checklist is still helpful for smaller companies. It helps you prepare for future changes and ensures your records are ready if thresholds change.
The checklist guides you on registering for MTD, keeping digital records, selecting compliant software, and submitting VAT returns correctly. Even if you don’t meet the turnover requirement yet, starting early reduces the risk of errors, missed deadlines, and potential penalties.
It also familiarises you with digital reporting, making future compliance simpler and less stressful. Staying organised with the checklist ensures that all transactions, invoices, and adjustments are tracked, providing a clear digital audit trail for HMRC inspections.
2. What is included in a Making Tax Digital checklist?
A good MTD checklist covers everything you need to stay compliant. It usually includes confirming if your business must comply, registering with HMRC, selecting approved MTD VAT software, keeping all records digitally, and understanding your filing deadlines.
It also covers creating a digital audit trail from invoices to submission and ensuring your calculations are accurate. The checklist may highlight common mistakes to avoid, such as relying solely on spreadsheets, missing deadlines, or using software that isn’t HMRC-approved.
Approved software also ensures your digital audit trail meets HMRC standards, which is essential if your records are ever checked. In short, HMRC approval guarantees that your submissions are secure, reliable, and fully compliant.
3. How can I keep my VAT records fully digital?
Keeping VAT records fully digital means storing all invoices, transactions, adjustments, and payments in a system that links directly to HMRC. Paper records or standalone spreadsheets don’t meet MTD requirements unless connected through a bridging tool or compliant software.
Your records should be organised, traceable, and easy to access for each VAT period. Digital storage should allow you to generate reports, track calculations, and maintain a clear audit trail for at least six years.
Following the MTD checklist makes sure your records are complete and linked from the source document to submission. This reduces errors, saves time during filing, and keeps HMRC satisfied during inspections. A fully digital process also makes it easier to manage multiple clients or businesses if needed.
4. How do I ensure I meet HMRC VAT filing deadlines?
Missing VAT deadlines can lead to penalty points and fines. The MTD checklist helps you stay on schedule by listing key VAT periods and deadlines for the year. Using digital tools or software that sends reminders can help you avoid last-minute submissions.
Make sure your records are updated regularly, check calculations before filing, and plan for any adjustments or corrections, even if your business has multiple VAT periods.
Switches between monthly and quarterly filing, maintaining a structured process ensures nothing is missed. Following the checklist means you’ll always know what’s due and when, reducing stress and avoiding unnecessary fines.
5. Why is a digitally linked audit trail important?
A digitally linked audit trail connects every transaction, invoice, and adjustment directly to the final VAT submission. HMRC requires this to verify accuracy and compliance.
Manual copying or disconnected spreadsheets don’t meet this standard. Following the MTD checklist ensures that each record is traceable, that errors are minimised, and that HMRC can review your submissions if needed.
It also makes audits easier to manage and protects your business from penalties. A proper audit trail provides clarity on all transactions, ensures transparency, and keeps your VAT process organised year-round.