Turn mandatory submissions into effortless MTD Income Tax filing
Transform compliance into new opportunities
Streamline your workflow and future-proof your business
Get MTD Ready with Zoho Books
Our MTD-compliant accounting software helps you file VAT and Income Tax returns directly to HMRC and stay tax-season ready.
What is Making Tax Digital (MTD)?
Making Tax Digital (MTD) is HMRC's initiative to help you maintain digital records and simplify their tax obligations by using online accounting software. Whether you are filing VAT or Income Tax returns, MTD aims to make accounting simpler and efficient, while ensuring tax compliance
MTD ready software for online VAT filing
Make your VAT obligations a breeze. Based on your accounting period, you can file your VAT returns directly to HMRC from our MTD-compliant accounting software and simplify your tax obligations.
Stay connected with HMRC from Zoho Books
Zoho Books helps you stay connected with HMRC. Once your Zoho Books account is authorized, you can effortlessly manage VAT obligations and stay tax-season ready.
Know exactly how much you owe HMRC
Fetch your VAT obligations directly from HMRC. Zoho Books automatically generates VAT returns based on your sales and purchase transactions. Know exactly how much VAT you owe and the amount you can reclaim from HMRC.
File VAT returns and submit to HMRC
With our MTD-compliant accounting software, reviewing your VAT returns, making adjustments, and directly submitting them to HMRC is simpler than ever. You are now MTD compliant!
Match VAT payments from HMRC
Make timely and accurate payments to HMRC and stay on top of reclaims. While Zoho Books is integrated with HMRC, you can fetch the payment details, match them with the corresponding return, and the reclaims you have received from HMRC.
What more can you do with Zoho Books?
Frictionless filing with agents
You can authorise your agents and set approvals for them to file your VAT return to HMRC on behalf of your organization. Let your accountant handle the tax obligations for your business.
Choose your preferred VAT scheme
While your business would fall under the Standard VAT scheme by default, you might also be eligible for HMRC's special VAT schemes. You can choose between Flat Rate Scheme (FRS) and Cash Accounting Scheme on Zoho Books.
Generate VAT MOSS report
Making a sale of your digital services to your international customers? Zoho Books tracks your cross-border sales and prepares VAT MOSS and IOSS reports, giving you country-wise details and tax liabilities for effortless global VAT compliance.
MTD timelines from HMRC you don't want to miss.
Trusted by businesses and accountants worldwide
We have been using Zoho Books for the past ten years, and it has always been a sturdy and reliable software for our financial needs. Our company has grown to almost 400 employees worldwide, where we use Zoho Books to handle our accounting and invoicing needs. It is a fantastic product!
Julian Weber
CEO, SELISE Rockin Software
Explore more MTD resources
Frequently Asked Questions
MTD : Your questions answered
In the following section, we hope to provide sufficient clarification on MTD and Zoho Books. For more information on VAT record keeping, we suggest you visit the VAT knowledge center of HMRC or our knowledge center.
What is Making Tax Digital (MTD)?
Making Tax Digital or (MTD) is HMRC's initiative that requires businesses and individuals to start maintaining digital records of their income and expenses. As a taxpayer, you are required to use online accounting software to submit your VAT or Income Tax returns to HMRC.
Is MTD mandatory for businesses and individuals?
While MTD is already mandatory for all VAT-registered businesses since 2022, sole traders with annual income of £50,000 and above will have to be MTD-compliant from April 2026.
Can I submit my returns via spreadsheets?
Yes, but make sure you're using spreadsheets that can be integrated with accounting software to upload in HMRC. Bridging software can also help you connect your spreadsheets to HMRC systems.
Can I opt out of MTD?
MTD is mandatory for all businesses and individuals. However, you can opt out of MTD. Please check the eligibility here.
Is Zoho Books MTD compliant?
Yes, Zoho Books is HMRC-recognised, MTD compliant accounting software. All VAT-registered businesses and sole traders who are eligible for MTD Income Tax can switch to Zoho Books to simplify accounting, compliance, and online return filing.
How can I get started with filing VAT returns in Zoho Books?
You can get started right away! Check out how to set up MTD for VAT in Zoho Books.
Is Zoho Books ready for MTD Income Tax?
Yes, Zoho Books is ready for MTD Income Tax. Sole traders can now prepare for self assessment by generating SA103F/SA103S report if they don't meet the revenue threshold set by HMRC. For sole traders with annual income of over £50,000 in the 2024-25 tax year, Zoho Books supports quarterly income tax return filing to HMRC. Sole traders can sign up for the FREE plan of Zoho Books to get started right away.
