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Prepare your data for Making Tax Digital

Before you sign up with HMRC for Making Tax Digital (MTD), we recommend you first check if your business is affected , and when your first submission is due.

Once you are ready to switch, you will then need to prepare your data in your account and check your vat settings are correct. You should also ensure that you’ve submitted all non-MTD VAT returns. You can’t switch to MTD if you have a draft, waiting or failed VAT return.

Check your VAT settings

  • 1. Go to Settings, then click Accounting Dates & VAT.
  • 2. Check the following details are correct:
VAT Scheme If your VAT scheme is flat rate cash or invoice based you should also enter the flat rate percentage.
VAT Number Your registered VAT number.
  • 3. Click Save.

Check that all non-MTD VAT returns have been submitted

You can’t switch to MTD if you have a draft, waiting or failed VAT return in Sage Business Cloud Accounting. To check if you have any:

  • 1. Go to Reporting, then click VAT Returns.
  • 2. Check the Status column. If any draft, waiting or failed returns appear in this window, you must either submit the VAT returns as normal or delete them from Sage Business Cloud Accounting.

You can then sign up with HMRC and switch. Please view our MTD check list.

Find out more about MTD

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