MTD

What is Making Tax Digital and how does Cledo help?

Making Tax Digital (MTD) is HMRC's programme to move UK tax administration online. Since April 2022, all VAT-registered businesses must keep digital records and submit VAT returns using MTD-compatible software. Cledo is fully MTD-compatible.

What Cledo handles automatically

  • ✓ Digital record-keeping from Open Banking feeds
  • ✓ Nine-box VAT computation from your categorised ledger
  • ✓ Direct submission to HMRC's MTD VAT API
  • ✓ Fraud prevention headers (device, IP, timezone, etc.)
  • ✓ Filing receipt and confirmation stored in your timeline

MTD for Income Tax (coming 2026)

From April 2026, self-employed individuals and landlords with income over £50,000 will need to submit quarterly updates to HMRC. Cledo's Personal Tax module is being prepared for MTD ITSA compliance.

How it works

  1. Connect your bank account — transactions flow in automatically
  2. AI categorises each transaction to the correct VAT treatment
  3. At the end of each VAT period, Cledo computes your 9 boxes
  4. Review the numbers in the VAT Prep Sheet
  5. Submit directly to HMRC with one tap — no HMRC portal needed
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