Making Tax Digital for VAT with Zoho Books

Before you start

• Your VAT registration number
• Your VAT scheme and return periods
• Access to your HMRC online account to authorise the connection
• Your accountant's chart of accounts

Step 1: VAT settings

Enable VAT in Zoho Books, enter your VAT number and scheme, and check the standard, reduced and zero rates against what you sell.

Step 2: Connect to HMRC

You authorise Zoho Books to connect to HMRC from your own HMRC sign-in. We never need your HMRC password.

Step 3: Keep digital records

Every sale and purchase is recorded in Zoho Books with its VAT, and bank feeds keep records complete. Opening balances are brought in at a clean cut-over date.

Step 4: Review and submit

• Review the VAT return in Zoho Books
• Check it with your accountant
• Submit it to HMRC from Zoho Books and keep the confirmation

Common mistakes

• Wrong VAT treatment on EU and overseas customers
• Missing bills, which understates input VAT
• Changing posted transactions after a return is filed

MTD for Income Tax

MTD for Income Tax is being introduced for some sole traders and landlords from April 2026. Check with your accountant whether and when it applies to you.

Frequently asked questions