UK Goverment - Making Tax Digital introduces digital record-keeping for VAT-registered businesses. For businesses that are above the VAT threshold, it is mandatory to use this service. Those that are below the threshold can use this service voluntarily. HMRC customers (and their agents) will use digital record-keeping software to interact directly with our systems via the MTD APIs.
The MTD VAT API allows software to supply business financial data to HMRC, so that clients can fulfil their obligations.