Making Tax Digital (MTD) is a UK government initiative designed to make VAT reporting more accurate and efficient. If your business is VAT-registered and meets the threshold, you must submit VAT returns digitally using HMRC-approved software.

Key Points:

• Only digital submissions through HMRC-approved software are valid.
  
• Paper VAT returns are no longer accepted for MTD-eligible businesses.
  
• MTD currently applies to VAT only, but HMRC plans to extend it to other taxes.
  

Tip: Make sure Zen Accounting is authorised to submit your VAT returns under MTD.