Making Tax Digital has transformed the way UK businesses manage and submit their tax information. Introduced by HMRC to modernise the tax system, Making Tax Digital requires VAT-registered businesses to keep digital financial records and submit VAT returns using compatible software. While this change aims to reduce errors and streamline tax administration, many businesses still find the transition challenging. This is where VAT accountants play a crucial role. Their expertise helps companies meet HMRC’s digital requirements while maintaining accuracy, compliance, and efficient record-keeping.

For many businesses, working with specialist support providers such as The Infinity Group ensures that VAT submissions are fully compliant with Making Tax Digital rules and that digital processes are set up correctly. This article explains how VAT accountants help UK companies stay compliant with Making Tax Digital and why their support has become essential.

Understanding Making Tax Digital for VAT

Making Tax Digital requires VAT-registered businesses with a taxable turnover above the VAT threshold to maintain digital records and submit VAT returns using software that integrates directly with HMRC’s systems. Even businesses with turnover below the threshold can voluntarily sign up for MTD, and HMRC has plans to expand MTD into income tax and other areas.

Under MTD for VAT, businesses must:

• Keep digital records of sales, purchases, and VAT calculations

• Use compatible accounting software

• Ensure digital links between systems when transferring VAT data

• Submit VAT returns through approved digital platforms

This makes traditional paper-based record-keeping and manual submissions non-compliant. VAT accountants assist companies in understanding and meeting all these requirements.

Ensuring Businesses Use HMRC-Compatible Software

One of the biggest challenges for businesses is selecting and implementing HMRC-approved software. Many companies previously relied on spreadsheets, manual calculations, or outdated systems that are no longer acceptable under Making Tax Digital rules.

VAT accountants help by:

• Assessing the business’s current financial systems

• Recommending MTD-compatible software like QuickBooks, Xero, Sage, or other approved platforms

• Setting up the software

• Migrating existing financial data securely

• Training staff to use digital tools properly

This ensures the business is fully prepared to submit VAT returns digitally with no compliance gaps. Providers such as The Infinity Group often work closely with VAT accountants to make sure all MTD systems integrate smoothly with payroll and VAT management.

Maintaining Accurate and Compliant Digital Records

Making Tax Digital requires businesses to maintain digital records of VAT-related transactions. This includes information such as sales invoices, purchase receipts, VAT rates, and adjustments. VAT accountants make this process easier by helping companies structure their digital records correctly from the start.

Their support includes:

• Setting up digital record-keeping frameworks

• Ensuring accurate categorisation of transactions

• Maintaining up-to-date VAT records within software systems

• Establishing processes for capturing receipts and invoices digitally

Accurate record-keeping not only ensures MTD compliance but also helps businesses avoid VAT miscalculations that could lead to HMRC penalties.

Reducing VAT Submission Errors Through Expert Oversight

One of HMRC’s goals with Making Tax Digital is reducing mistakes in VAT returns. Even with digital systems, errors can still occur if the data entered is incorrect. VAT accountants play a vital role in reviewing records, checking calculations, and ensuring that VAT returns are accurate before submission.

This includes:

• Verifying tax codes

• Checking VAT rate application on goods and services

• Identifying discrepancies in sales and purchase records

• Reviewing adjustments and reclaim calculations

• Ensuring the return matches digital financial data

Expert oversight reduces the risk of penalties, incorrect VAT payments, or future compliance issues. The Infinity Group works alongside VAT accountants to ensure that financial data from payroll and CIS records also align correctly with VAT submissions.

Helping Businesses Establish Digital Links

Making Tax Digital requires digital links between software systems when transferring VAT information. This means businesses cannot manually copy and paste data between spreadsheets or systems. Many businesses struggle with this requirement because they use multiple tools for accounting, payroll, or invoicing.

VAT accountants help ensure compliance by:

• Creating secure digital links between systems

• Ensuring VAT data flows automatically to the submission software

• Eliminating manual data entry

• Integrating payroll, invoicing, and accounting systems

This further reduces the risk of human error and ensures that all VAT submissions meet HMRC’s digital requirements.

Providing Ongoing VAT Review and Compliance Monitoring

VAT legislation frequently changes, and Making Tax Digital requirements continue to evolve. VAT accountants provide ongoing monitoring and support so that businesses stay compliant year-round.

They help with:

• Regular VAT audits

• Checking compliance with new MTD regulations

• Reviewing VAT records and correcting errors quickly

• Monitoring digital processes for weaknesses

• Advising businesses on improvements when needed

This proactive support helps businesses avoid surprises, penalties, or compliance failures during HMRC reviews.

Supporting VAT Complexities Under MTD

Some businesses face more complex VAT situations, such as:

• Partial exemption

• Flat rate schemes

• Reverse charge VAT

• CIS VAT interactions

• International VAT on imports and exports

Making Tax Digital does not simplify these areas, and many companies find it difficult to manage them digitally. VAT accountants interpret the rules, apply the correct treatments, and ensure that every transaction is recorded and reported correctly.

With the support of providers like The Infinity Group, businesses can manage payroll-related VAT interactions, reverse charge duties, and CIS-related processes more effectively under MTD.

Improving Efficiency and Saving Time

Digital compliance requires consistent organisation and reliable digital infrastructure. Without professional support, the process can be time-consuming. VAT accountants streamline operations by managing submissions, organising digital records, and making sure software is used effectively.

This frees up business owners, finance teams, and administrative staff to focus on operations rather than navigating complex MTD requirements. Combined with payroll and tax support from The Infinity Group, companies can automate large parts of their financial processes.

Offering Guidance During HMRC Reviews or Enquiries

If HMRC queries a VAT submission or requests additional information, VAT accountants provide representation and support. They help gather documentation, explain discrepancies, and communicate with HMRC professionally. Businesses working with The Infinity Group and VAT specialists benefit from well-maintained records and a clear audit trail, making the enquiry process smoother and less stressful.

Conclusion

Making Tax Digital has reshaped VAT compliance requirements across the UK. While the shift to digital systems improves accuracy and reduces errors, many businesses still need guidance to meet all HMRC expectations. VAT accountants play a crucial role by ensuring companies use compatible software, maintain accurate digital records, establish digital links, and submit error-free VAT returns.

For businesses seeking reliable digital compliance and VAT accuracy, partnering with expert support providers such as The Infinity Group offers a complete solution. With professional oversight, efficient systems, and strong VAT knowledge, companies can stay fully compliant with Making Tax Digital while improving accuracy and saving time.