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Zoho Blog</title><link rel="stylesheet" media="all" href="https://blog.zohowebstatic.com/sites/zblogs/theme/css/zoho-blogs-wp-theme.css" /><link rel="stylesheet" media="all" href="https://blog.zohowebstatic.com/sites/zblogs/common/css/zohodblogs.css" /><script type="text/javascript">(function(w,s){var e=document.createElement("script");e.type="text/javascript";e.async=true;e.src="https://zohotagmanager.cdn.pagesense.io/ztmjs/9e14ca550fb345518206a5a65a40a7a9.js";var x=document.getElementsByTagName("script")[0];x.parentNode.insertBefore(e,x);})(window,"script");</script></head><body site="zohodblogs" data-prdname="books" data-prdname-display="Zoho Books" class="post-template-default single single-post postid-3614 single-format-standard i18n-en category-books path-node page-node-type-article-content"><div id="page" class="site"><div class="site-inner"><header id="masthead" class="site-header" role="banner"><div class="header-nav"><div class="brand-logo"><div class="hamburger-btn"><div class="hamburger-bar"></div></div><a href="/blog/" rel="home">Blog</a></div><div class="header-right-bar"><div class="header-search"><span class="btn-search fa fa-search icon-button-search"></span><form action="/blog/" method="get" role="search" id="searchform_topbar" class="search-top-bar-popup search-form"><label><span class="screen-reader-text">Search for:</span><input type="search" class="search-field-top-bar" id="search-field-top-bar" placeholder="Search…" value="" name="s" /></label><button type="submit" class="search-submit search-top-bar-submit" id="search-top-bar-submit"><span class="fa fa-search header-search-icon"></span><span class="screen-reader-text">Search</span></button></form></div><div class="language-selector header-lan-picker disabled"><span class="select-language"></span></div></div></div></header><div class="header-product-link"></div><div id="content" class="site-content container"><div id="primary" class="content-area row"><main id="main" class="site-main col-md-8 col-sm-12 col-xs-12" role="main"><article id="post-3614" class="post-3614 post type-post status-publish format-standard has-post-thumbnail hentry category-zoho-books tag-accounting-software tag-agents tag-finance tag-making-tax-digital tag-united-kingdom tag-zoho-books tag-zoho-finance-plus"><header class="entry-header"><h1 class="entry-title">Get Ready for Making Tax Digital with Zoho Books</h1><div class="entry-info"><div class="posted-info"><span class="posted-on">Posted on <time class="entry-date published" datetime="22-02-07IST06:05:44+00:00">February 7, 2022</time></span><span class="posted-on updated-on">Last Updated On <time class="entry-date published updated" datetime="22-10-21IST05:12:43+00:00">October 21, 2022</time></span><span class="author-info"> by <a href="/blog/author/bennet-noel">Bennet Noel</a></span></div><span class="read-info"><span class="read-time">3</span> Mins Read</span></div></header><div class="entry-content"><blockquote><p>Blog updated on <strong>21 Oct 2022</strong></p></blockquote><p>Back in April 2019, HM Revenue and Customs (HMRC) launched an initiative called Making Tax Digital (MTD) to digitise the way businesses kept their financial records and submitted their VAT returns. This move required businesses in the UK above the VAT threshold of 拢85,000 to submit their VAT returns online using MTD-compatible accounting software.</p><p>Now, HMRC has mandated that all VAT-registered businesses (irrespective of their turnover) must file their VAT returns digitally through MTD on 1 Nov 2022. Businesses are required to use HMRC-authorised and MTD-compatible software to keep digital records and file VAT returns.</p><p>If you are one such business looking for a transition, Zoho Books has got you covered.</p><p><img decoding="async" loading="lazy" src="https://blog.zohowebstatic.com/sites/zblogs/images/books/zb-mtd-tweet-image-08-2022-02.png" alt="" width="1200" height="675" class="alignnone size-full wp-image-121570"></p><h3>How can Zoho Books help you become MTD compliant?</h3><h6>Recording Business Transactions</h6><p>Businesses are expected to go fully digital to be MTD compliant. Zoho Books helps you do just that by enabling you to record all your business transactions on the cloud. You can record your transactions by entering them manually, importing transactions from your current software, fetching your bank feeds, or scanning your receipts.</p><h6>Filing VAT Returns and Recording VAT Payments</h6><p>A cornerstone of MTD is to be able to file your VAT returns online. Once you鈥檝e recorded all your business transactions in Zoho Books, you will be able to <a href="https://www.zoho.com/in/books/help/vat-filing/vat-filing.html">file your VAT returns</a> easily on a quarterly basis according to HMRC鈥檚 requirements. As soon as you file your VAT returns, you can <a href="https://www.zoho.com/in/books/help/vat-payments/vat-payment.html">record your VAT payments and reclaims</a> in Zoho Books.</p><h6>Comprehensive VAT Reports</h6><p>Zoho Books uses all the data available in the application to generate powerful reports such as VAT returns, VAT MOSS, and OSS/IOSS scheme reports, which can all reveal a lot of insights about your business. With these reports, you can use Zoho Books as your end-to-end solution to become MTD compliant.</p><p>A good number of businesses have already started using Zoho Books to submit their VAT returns online. By going digital, those businesses were able to reduce errors and enhance productivity when it came to filing their VAT returns.</p><h3>Steps to Take to Become MTD Compliant</h3><p><strong>Step 1:</strong> If you鈥檙e a business owner, you can <a href="https://www.gov.uk/vat-record-keeping/sign-up-for-making-tax-digital-for-vat">visit GOV.UK to sign your business up for Making Tax Digital</a>.</p><p>However, if you鈥檙e an HMRC authorised agent, you will need to <a href="https://www.gov.uk/guidance/get-an-hmrc-agent-services-account">create an agent services account</a>, which is different from your HMRC鈥檚 online services for agents account. Once you do that, you can <a href="https://www.gov.uk/guidance/sign-up-your-client-for-making-tax-digital-for-vat">sign up your client for Making Tax Digital</a>.</p><p><strong>Note:</strong> You must have your MTD-compatible software ready before you sign up your business for MTD compliance.</p><p>You can <a href="https://www.zoho.com/uk/books/pricing/?utm_source=MTD&utm_medium=Blog&utm_campaign=MTD50&utm_id=MTD2022">choose a plan</a> to fit your business requirements from the variety of plans that Zoho offers.</p><p><strong>Step 2:</strong> Once you sign up for Making Tax Digital for VAT, you can start recording your business transactions for the VAT period.</p><p>Once you complete these steps, you鈥檒l now be ready for HMRC鈥檚 Making Tax Digital for VAT. For more information on Making Tax Digital for VAT, you can <a href="https://www.zoho.com/lp/books/making-tax-digital-accounting-software-2022/?utm_source=MTDBlog&utm_medium=blog+text&utm_campaign=MTD+April+2022&utm_id=MTD2022" rel="noopener" target="_blank">visit our page for MTD</a>.</p><p>If you have any questions or require any clarification, please feel free to leave a comment below or write to us at support@zohobooks.com.</p></div><footer class="entry-footer clearfix"><span class="cat-tags-links"><span class="cat-links"><span class="cat-icon"><i class="fa fa-folder-open"></i></span><span class="screen-reader-text">Categories</span><a href="/blog/books" rel="category tag">Zoho Books</a></span><span class="tags-links"><span class="tags-icon"><i class="fa fa-hashtag" aria-hidden="true"></i></span><span class="screen-reader-text">Tags</span><a href="/blog/tag/accounting-software" rel="tag" > #accounting software</a>, <a href="/blog/tag/agents" rel="tag" > #Agents</a>, <a href="/blog/tag/finance" rel="tag" > #Finance</a>, <a href="/blog/tag/making-tax-digital" rel="tag" > #Making Tax Digital</a>, <a href="/blog/tag/united-kingdom" rel="tag" > #United Kingdom</a>, <a href="/blog/tag/zoho-books" rel="tag" > #Zoho Books</a>, <a href="/blog/tag/zoho-finance-plus" rel="tag" > #Zoho Finance Plus</a></span></span></footer><div class="entry-author-info clearfix"><div class="author-avatar"><img width="72" height="72" src="https://blog.zohowebstatic.com/sites/zblogs/images/author_profile/bennet-noel.png" class="avatar avatar-72 photo" alt="" loading="lazy" sizes="(max-width: 72px) 100vw, 72px" /></div><div class="author-description"><p class="author-title"><a href="/blog/author/bennet-noel" title="Posts by Bennet Noel" rel="author">Bennet Noel</a></p><p class="author-bio">User Educator</p></div></div><div class="section-container contact-sales-form-wrap blog-form-container"><div class="freeze_layer" style="display: block;"></div><div class="formSec " 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