Business Central & Making Tax Digital
File VAT the way HMRC now requires. Microsoft Dynamics 365 Business Central keeps digital records and submits your VAT returns to HMRC through a built-in Making Tax Digital connection — no spreadsheets, no bridging software.
Dynamics 365 Business Central is Making Tax Digital compliant. It keeps digital VAT records and files VAT returns to HMRC through a built-in, API-based MTD connection — so a single system handles your accounting and your VAT, with the digital links MTD requires maintained automatically.
How Business Central handles Making Tax Digital
Everything you need to meet HMRC’s MTD rules — without stitching together spreadsheets and bridging tools.
Direct HMRC connection
A built-in, recognised link to HMRC’s Making Tax Digital service retrieves your VAT obligations and submits returns electronically.
Digital record keeping
Your accounting data is the record. Business Central maintains the digital links MTD requires end to end — no manual copy-paste.
Correct UK VAT
Standard 20%, reduced 5%, zero-rated, reverse charge and VAT groups are all handled so your returns reflect UK rules.
All-in-one ERP
Finance, sales, purchasing, inventory and projects in one system — VAT is a by-product of the books you already keep.
No bridging software
Because records and filing live together, you don’t need separate bridging tools to move figures from spreadsheets.
MTD roadmap ready
Built to keep pace with HMRC, including MTD for Income Tax Self Assessment from April 2026.
Why file MTD in Business Central
One UK-compliant system for your accounts and your VAT — set up and tested by a certified partner.
Related pages
More on Dynamics 365 for UK businesses.
From spreadsheets and bridging tools to one clean system
Many UK businesses still export figures to a spreadsheet and push them to HMRC through bridging software. It works, but it’s fragile, error-prone and hard to audit.
Business Central keeps your records and files your VAT in the same place, with the digital links MTD requires already in place — so VAT becomes a routine output of your books.
Make Making Tax Digital effortless
Book a free call and we’ll set up MTD in Business Central and file your VAT digitally to HMRC — fixed-price, in GBP.
Business Central vs spreadsheets & bridging software
Why one system beats a chain of tools for MTD.
Business Central
- ✓Records & VAT filing in one system
- ✓Digital links maintained automatically
- ✓Correct UK VAT rates & groups
- ✓Direct HMRC MTD connection
- ✓Audit-ready and traceable
- ✓Ready for MTD for Income Tax
Spreadsheets & bridging
- ✗Data copied between tools
- ✗Broken digital links & errors
- ✗VAT logic maintained by hand
- ✗Extra bridging software to license
- ✗Hard to audit
- ✗Rework as rules expand
How we set up MTD in Business Central
A tested, low-risk path to compliant VAT filing.
Review
We review your VAT setup, schemes and current filing process to plan the MTD configuration.
Configure
We set up VAT posting groups, UK rates and the HMRC Making Tax Digital connection.
Test submission
We run and validate a test VAT return against HMRC before you go live.
Go-live & support
You file VAT digitally from Business Central, with our support as the rules evolve.
Key Making Tax Digital dates
MTD is rolling out in phases. Here’s where things stand — and what’s coming.
April 2019
MTD for VAT began for VAT-registered businesses above the £85,000 threshold.
April 2022
MTD for VAT extended to ALL VAT-registered businesses, whatever the turnover.
April 2026
MTD for Income Tax Self Assessment begins for sole traders and landlords over £50,000.
April 2027
MTD for Income Tax extends to those with income over £30,000.
Do you need to comply with MTD?
If these apply to you, Business Central keeps you compliant automatically.
Business Central does far more than MTD
VAT filing is one output of a full ERP that runs your whole business.
Finance & accounting
General ledger, cash flow, bank reconciliation and management reporting — all UK-ready.
Inventory & warehousing
Real-time stock, locations, and replenishment across one or many sites.
Sales & purchasing
Quotes, orders, invoicing and vendor management in one connected flow.
Projects & jobs
Plan, resource, track and bill projects with full cost visibility.
Supply chain
Connect procurement, production and distribution end to end.
Reporting & Power BI
Live dashboards and analytics so you decide on facts, not guesswork.
Frequently asked questions
Is Dynamics 365 Business Central Making Tax Digital compliant?
Yes. Business Central includes a built-in Making Tax Digital connection that keeps digital VAT records and submits VAT returns to HMRC through a recognised, API-based link — meeting MTD requirements without manual copying between systems.
Who has to comply with Making Tax Digital for VAT?
Since April 2022, Making Tax Digital for VAT applies to all VAT-registered businesses in the UK, regardless of turnover. You must keep digital records and file VAT returns using MTD-compatible software.
How does Business Central submit VAT returns to HMRC?
Business Central connects to HMRC’s Making Tax Digital service, retrieves your VAT obligations, prepares the return from your digital records and submits it electronically — with the required digital links maintained end to end.
Can Business Central replace bridging software for MTD?
Yes. Because Business Central keeps your accounting records and files VAT digitally in one system, you don’t need separate bridging software to copy figures from spreadsheets — the digital link is built in.
Does Business Central handle UK VAT rates and VAT groups?
Business Central supports UK VAT at the standard 20%, reduced 5% and zero rates, along with reverse charge and VAT group scenarios, so your returns reflect UK rules correctly.
Is Business Central ready for MTD for Income Tax?
Business Central is built to keep pace with HMRC’s Making Tax Digital roadmap, including the phased introduction of MTD for Income Tax Self Assessment from April 2026.
Compliant VAT, wherever you are
We set up Making Tax Digital in Business Central for businesses across the United Kingdom — remotely and UK-compliant.
Make VAT filing effortless with Business Central
Book a free call. We’ll set up Making Tax Digital in Business Central and give you a clear, fixed-price plan in GBP.