Get MTD Ready with Zoho Books
Your VAT-ready MTD-compliant accounting software, is now gearing up for MTD for Income Tax. Whether you are a sole trader or a growing business, your search for MTD-compliant accounting software ends here.
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MTD for Income Tax
In view of the April 2026 mandate, sole traders with annual income over £50,000, can now file income tax returns FREE of cost with Zoho Books.
With our FREE plan, sole traders can:
- Get income tax estimates
- Submit quarterly summary data
- Reconcile bank transactions
- File MTD income tax returns with HMRC
Why Zoho Books is your best choice for MTD compliance
Zoho Books will help you file your VAT in a matter of seconds
Enable VAT filing
Authorize Zoho Books with HMRC
Record your transactions with VAT
Generate and file your VAT Return
Fetch and record your payments from HMRC
Online accounting, simplified
MTD requires businesses to maintain digital records of their income and expenses, and Zoho Books as a cloud accounting solution simplifies this equation. From keeping tabs on your expenses to generating business reports, manage your bookkeeping from anywhere, anytime.
One app for all your collaboration
Zoho Books lets you collaborate and work better with your team using role-based access permissions. Once your account is set up, you can let your accountant manage your taxes and accounts as a user of Zoho Books, at no additional cost.
What more can you do with Zoho Books?
Frictionless filing with agents
You can authorize your agents and set approvals for them to file your VAT return to HMRC on behalf of your organization.
Report generation on autopilot
Zoho Books can automatically generate VAT returns for your business based on sales and purchase transactions.
Direct VAT return submission
With Zoho Books, reviewing your returns, making adjustments and directly submitting them to the HMRC portal is now easier than ever.
Match VAT payments from HMRC
When integrated with HMRC, Zoho Books will help you fetch your payments details from HMRC so you can match them with the corresponding return.
"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."
Julian Weber
CEO, SELISE ROCKIN SOFTWARE
Julian Weber
CEO, SELISE ROCKIN SOFTWARE
"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."
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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 a UK government initiative that requires businesses to digitize their financial processes. As a business and a tax payer, you are required to use accounting software and submit returns to HMRC every quarter.
Is MTD compulsory for all businesses in the UK?
According to the latest HMRC mandate , all VAT registered businesses regardless of their turnover will have to digitally file VAT returns to HMRC using MTD-compliant software.
Can I submit VAT 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?
Yes, you can apply for an exemption with HMRC . Note that you will be exempted from MTD if:
1. You're already exempt from filing VAT returns online.
2. You or your business is subject to an insolvency procedure.Is Zoho Books MTD compliant?
Yes! Zoho Books is HMRC recognized, MTD-compliant VAT accounting software. We also prioritize your data security above all else. Learn more about Zoho's privacy and security policy.
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.
