Making Tax Digital – are your digital links in order?

Making Tax Digital – are your digital links in order?

Wednesday, 04 March 2020

The many businesses who started submitting quarterly VAT returns from 1 April 2019 are approaching the first anniversary of Making Tax Digital for VAT. You’ve no doubt got to grips with the process now.

However, the first anniversary of Making Tax Digital (MTD) also presents a new challenge: complying with HMRC’s ‘digital links’ requirement. As a result, any business approaching a year since it was first enrolled in MTD should be considering whether its process of VAT return preparation is compliant. 

What is an MTD digital link?

A ‘digital link’ is where data is transferred electronically between software programs, products or applications (for example, from accounting software to spreadsheet or from point of sale software to accounting software). The transfer should be made without manual intervention (which would include copying and pasting).

Reviewing your digital links

Our VAT team has worked with dozens of businesses to review their digital links and would be delighted to help you make sure your digital links are compliant. In addition, as part of the digital links review, we can also consider the preparation of your VAT return. Is it robust? Are risks being minimised? Or is it overly complex? If the latter, we can help you streamline the process of preparing a VAT return.

If you have concerns about digital links or your VAT return preparation process, please contact our specialist VAT team.

Need help?

Our VAT team has worked with a wide range of businesses in preparing for Making Tax Digital. We’d be pleased to talk to you about any issues or concerns you may have. 

Call 0330 024 0888 or email

Rob Skilton


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