How to Submit VAT Returns via MTD Software with HMRC – [Complete Guide]

Team Nomi

Jul 11, 2026
6 minutes read

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The easiest way to submit a VAT return is by using HMRC-recognised Making Tax Digital (MTD) software. The software keeps digital records, calculates VAT automatically, and submits returns directly to HMRC.

This means you need to keep digital records and use special MTD-compatible software to send your VAT returns.

Whether you’re a small business owner, bookkeeper, or accountant, understanding how to file VAT returns through MTD software is important to staying compliant and avoiding penalties.

What is making tax digital (MTD) for VAT?

Making Tax Digital (MTD) for VAT is a UK government initiative by HM Revenue & Customs. It requires VAT-registered businesses to keep digital financial records and submit VAT returns through approved systems.

If you are registered for VAT, you will need reliable HMRC VAT software to record transactions, calculate VAT, and file returns correctly. Most businesses also prefer using accounting software for VAT returns to manage invoices, expenses, and VAT records in one place.

You can also choose modern VAT return software to simplify the entire process and reduce paperwork.

How to submit VAT returns via MTD software

Submitting VAT returns through MTD software is simple once your setup is complete. Follow these five steps to stay compliant with HM Revenue & Customs and file your returns accurately and on time.

Step 1: Sign Up for MTD with HMRC

• • Visit the official HMRC MTD sign-up page.
  • Log in using your Government Gateway ID.
  • Complete the registration and wait for confirmation from HMRC.

Step 2: Connect Nomi to HMRC

Once approved, log in to your Nomi account and connect it with HMRC:

• • Go to the VAT section in your dashboard
  • Select the option to connect with HMRC
  • Sign in using your Government Gateway credentials
  • Authorise access for your VAT software connection

This ensures your system works as approved VAT software HMRC for filing returns.

Step 3: Maintain Digital Records

Under MTD rules, all VAT records must be stored digitally. Using modern accounting software helps you:

• • Capture sales and purchase invoices automatically
  • Reconcile bank transactions easily
  • Keep VAT data accurate and organised

This ensures your VAT return software is always ready for submission.

Step 4: Review Your VAT Return

Before submitting, carefully review your figures. A good VAT software HMRC dashboard will show:

• • VAT on sales
  • VAT on purchases
  • Total VAT payable or reclaimable

Make adjustments if needed before you submit your VAT digitally.

Step 5: Submit to HMRC

Once everything is correct:

• • Click “Submit to HMRC” in your software
  • Confirm your submission
  • Receive a submission receipt and reference number

Your VAT return is now successfully submitted through MTD software.

What you need before you start

Before you can submit VAT through MTD software, you need a few things in place:

1. VAT Registration: Your business must be registered for VAT with HMRC.
2. MTD Sign-Up: You must sign up for MTD for VAT with HMRC. This is a separate step and doesn’t happen automatically when you register for VAT.
3. Government Gateway ID: You’ll need a Government Gateway user ID and password linked to your VAT account.
4. MTD-Compatible Software: You need software that is approved by HMRC, such as Nomi, to submit your returns.

How software helps businesses submit VAT returns

Nomi is designed specifically for accountants, bookkeepers, and small businesses. It provides a full suite of cloud-based accounting software, including:

• • Automated Bookkeeping: Capture and categorise expenses and income with ease.
  • Digital Record Keeping: Stay compliant with MTD requirements using all-in-one storage.
  • One-Click Submissions: Use VAT return software features to submit VAT Returns directly to HMRC in just a few clicks.
  • Error Detection: Built-in checks to reduce mistakes before submission.

With accounting software VAT returns, you don’t need to worry about missing deadlines or handling complex spreadsheets. The system works as reliable HMRC VAT software, handling most of the process automatically so you can focus on running your business.

Common mistakes to avoid

Even with good software, there are a few common mistakes to be aware of:

• • Forgetting to Sign Up for MTD: You can’t submit via MTD software until HMRC confirms your registration.
  • Late Submissions: HM Revenue & Customs imposes penalties for late VAT returns. Software reminders help you stay on track.
  • Not Keeping Digital Records: This is a legal requirement under MTD, not just a suggestion and must be managed through VAT software and HMRC systems.

Submitting VAT doesn’t need to be stressful. By using MTD-compatible tools  and proper VAT return software, you can stay compliant, reduce admin work, and improve accuracy.

Whether you’re an accountant managing multiple clients or a small business handling your books, using the right accounting software VAT return setup makes it easier to submit VAT digitally without errors or delays.

Try a free trial for 30 days to see how it can smooth your workflow and support your business growth. It offers a user-friendly platform that helps you stay fully compliant with HMRC’s Making Tax Digital requirements.

Frequently asked questions

1. How do I know if software is recognised by HMRC?
   Ans: You can check the official list of HMRC-recognised MTD-compatible software on the HMRC website.
2. Can I use free software for MTD VAT returns?
   Ans: Some providers offer free versions or trials of their MTD-compatible software. It’s important to check if it meets your business needs and MTD compliance requirements.
3. Does MTD-compatible software work for all types of businesses?
   Ans: Most MTD-compatible software is designed for a range of business types, including sole traders, partnerships, limited companies, and accountants managing multiple clients.
4. Is cloud-based software better for MTD?
   Ans: Cloud based MTD software offers flexibility, real-time access, and automatic updates, making it easier to manage VAT returns from anywhere and stay compliant with HMRC.

5. Can you submit a VAT return directly to HMRC?
   Ans: Yes, but if your business follows Making Tax Digital (MTD) rules, you must submit your VAT return using software. Most businesses can no longer submit VAT returns manually.

6. What software is used for MTD VAT?
   Ans: MTD VAT software is used to keep digital records and send VAT returns to HMRC. Businesses can use HMRC-compatible accounting and VAT software such as Nomi and other approved platforms.

7. How to submit the MTD VAT return?
   Ans: First, sign up for MTD with HMRC and connect your software to your VAT account. Keep your VAT records digitally, review your return, and submit it through the software. HMRC will send confirmation once submitted.

8. Can I submit VAT without MTD?
   Ans: If your business must follow MTD rules, you cannot submit VAT returns without MTD software. You must keep digital records and file through approved software.