--- title: New rules of Making Tax Digital For VAT description: HMRC has published further information on Making Tax Digital for VAT (MTDfV). The VAT notice sets out some further details of the MTDfV regime, which will ultimately require taxpayers to move to a fully digital tax system. image: https://blog.shorts.uk.com/hubfs/Stock%20images/Businessman%20working%20on%20making%20tax%20digital.jpeg --- [![Shorts_logo_White](https://blog.shorts.uk.com/hubfs/New%20Site%202018/Shorts_logo_White.svg "Shorts_logo_White")](https://www.shorts.uk.com/) [Blogs & News](https://blog.shorts.uk.com/) > [Xero](https://blog.shorts.uk.com/topic/xero) # New rules of Making Tax Digital For VAT Alicia Williams - 15 August 2018 ###### Select topic - Please Select - [ Audit ](https://blog.shorts.uk.com/topic/audit) [ Business Taxes ](https://blog.shorts.uk.com/topic/business-taxes) [ Radius – R&D Tax Relief & Patent Box ](https://blog.shorts.uk.com/topic/radius-rd-tax-relief-patent-box) [ Corporate Finance ](https://blog.shorts.uk.com/topic/corporate-finance) [ GENUS Management Accounts ](https://blog.shorts.uk.com/topic/genus-management-accounts) [ VAT ](https://blog.shorts.uk.com/topic/vat) [ Private Client ](https://blog.shorts.uk.com/topic/private-client) [ Payroll ](https://blog.shorts.uk.com/topic/payroll) [ EOT ](https://blog.shorts.uk.com/topic/eot) [ International Taxes ](https://blog.shorts.uk.com/topic/international-taxes) ![featured image](https://blog.shorts.uk.com/hubfs/Stock%20images/Businessman%20working%20on%20making%20tax%20digital.jpeg) ###### HMRC has published further information on Making Tax Digital for VAT (MTDfV). The VAT notice sets out some further details of the MTDfV regime, which will ultimately require taxpayers to move to a fully digital tax system. Under the rules, businesses with a taxable turnover above the [VAT threshold](https://blog.shorts.uk.com/what-is-vat) (currently £90,000) will be required to keep digital records for VAT purposes using ‘functional compatible software’ and provide their VAT return information to HMRC via an application programming interface. This notice explains: - the digital records businesses must keep and the ways to record transactions digitally in certain special circumstances - what counts as ‘functional compatible software’, and when software programs do and do not need to be digitally linked where a combination of programs is used.   The new rules have effect from 1 April 2019, where a taxpayer has a ‘prescribed accounting period’ which begins on that date, and otherwise from the first day of a taxpayer’s first prescribed accounting period beginning after 1 April 2019. Please contact us for advice and support on the introduction of MTDfV For more information [read the previous blog on making tax digital. ](https://blog.shorts.uk.com/making-tax-digital-for-vat-mtd)   [![Contact us](https://no-cache.hubspot.com/cta/default/2442072/27ed3297-05cb-4553-843b-b5e5a88bcc03.png)](https://cta-redirect.hubspot.com/cta/redirect/2442072/27ed3297-05cb-4553-843b-b5e5a88bcc03)   Relevant articles  - [Making tax digital for VAT ](https://blog.shorts.uk.com/making-tax-digital-for-vat-mtd) - [What is VAT - a guide to Value Added Tax](https://blog.shorts.uk.com/what-is-vat) - [Shorts confirmed as the region's first Xero Platinum Partner ](https://blog.shorts.uk.com/making-tax-digital-for-vat-mtd)   ![author](https://blog.shorts.uk.com/hubfs/Alicia%20williams-1.jpg) #### Alicia Williams I am Partner of the Genus team at Shorts, a chartered certified accountant and Xero specialist. I specialise in cloud-based accounting solutions, particularly Xero and add-on software, helping clients streamline processes and improve efficiency. As a Client FD, I work closely with businesses to give them a clear understanding of their current position and support their long-term planning and growth. [View my articles](https://blog.shorts.uk.com/author/alicia-williams) Tags: [Xero](https://blog.shorts.uk.com/topic/xero), [GENUS Management Accounts](https://blog.shorts.uk.com/topic/genus-management-accounts), [VAT](https://blog.shorts.uk.com/topic/vat), [Accountancy Services](https://blog.shorts.uk.com/topic/accountancy-services), [Business Taxes](https://blog.shorts.uk.com/topic/business-taxes), [Making Tax Digital](https://blog.shorts.uk.com/topic/making-tax-digital) Share this on - - - [Questions? Get in touch with us](https://www.shorts.uk.com/contact/) ###### Tax Saving Guide 2026-27 Written especially for entrepreneurs and owner-managed businesses, this guide is full of planning ideas and tax risks to avoid. [ Download now ](https://info.shorts.uk.com/en-gb/tax-saving-guide) ![Tax saving guide 2026-27](https://blog.shorts.uk.com/hs-fs/hubfs/Tax%20saving%20guide%202024.jpg?width=375&height=465&name=Tax%20saving%20guide%202024.jpg) ###### Related articles ##### [MTD and VAT: Making Tax Digital in 2026](https://blog.shorts.uk.com/mtd-and-vat-making-tax-digital) ##### [Understanding the eligibility thresholds and exemptions for MTD ITSA](https://blog.shorts.uk.com/understanding-the-eligibility-thresholds-and-exemptions-for-mtd-itsa) ##### [MTD for Income Tax: how your accountant can help](https://blog.shorts.uk.com/mtd-for-income-tax-how-your-accountant-can-help) ##### [VAT and Making Tax Digital (MTD) – don’t risk a penalty](https://blog.shorts.uk.com/vat-and-making-tax-digital-penalty) ###### Latest articles [Should UK business owners reconsider exit timing?](https://blog.shorts.uk.com/uk-business-owners-reconsider-exit-timing) [Xerocon 2026: Innovation, inspiration and a look at the future](https://blog.shorts.uk.com/xerocon-2026-innovation-inspiration-and-a-look-at-the-future) [Salary sacrifice pension changes 2029: what you need to know](https://blog.shorts.uk.com/salary-sacrifice-pension-changes-2029) [How to separate a business through a demerger](https://blog.shorts.uk.com/how-to-separate-a-business-through-a-demerger) [A case of aggressive tax avoidance: Glasgow Rangers Football Club](https://blog.shorts.uk.com/aggressive-tax-avoidance-affect-you) [What is VAT? - Complete Guide (Updated for 2025/26)](https://blog.shorts.uk.com/what-is-vat) [Ashgate Hospice Sparkle Night Walk 2026](https://blog.shorts.uk.com/ashgate-hospice-sparkle-night-walk-2026) [Stocktaking guide for UK businesses](https://blog.shorts.uk.com/stocktaking-guide-for-uk-businesses) [Supporting the Chatsworth Cascade for future generations](https://blog.shorts.uk.com/supporting-the-chatsworth-cascade-for-future-generations) [Deal of the Year win at Insider Dealmakers Awards 2026](https://blog.shorts.uk.com/deal-of-the-year-win-at-insider-dealmakers-awards-2026) #### About Us Use this little footer to reinforce your message about who you are and why people love working with you. 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