Making Tax Digital

Posted on 16 January 2026

Everything Independent Opticians Need to Know.


What is MTD?

Making Tax Digital (MTD) is the UK government’s programme to modernise tax. It requires digital record-keeping and online VAT submissions using software that HMRC recognises as MTD-compatible.

Does MTD apply to me?

If your taxable turnover is above the VAT registration threshold, you must comply with MTD for VAT from your first VAT period starting on or after 6th April 2026.

When does MTD start for VAT?

MTD for VAT applies from the first VAT return period that starts on or after 6th April 2026.A “VAT period” is the set of dates covered by a VAT return.

What records must I keep?

Business name
Principal place of business address
VAT registration number
Any VAT accounting schemes you use

    For every supply (sales or purchases) that appears on your VAT return, you must record:

    Value of the supply (net — excluding VAT)
    Rate of VAT charged
    Time of supply (tax point)

    Only supplies that count towards the VAT return need to be in digital records.

    You can authorise HMRC to exchange MTD data via your agent (e.g., your accountant).

    What are digital links?

    MTD doesn’t require that all your records live in one single piece of software. You can use a set of compatible digital tools that together make up your digital record system.

    However: Once data has been entered into digital records, any transfer, recapture or modification must be done through digital links — not manual re-keying.

    Valid digital links include:

    Emailing a spreadsheet with digital records for import into another system
    Transferring digital records on a USB/portable device for import
    XML/CSV import/export, and file upload/download
    Automated data transfer (e.g., sync tools)
    APIs

      Not acceptable as digital links: cut and paste or copy and paste between systems.

      Optisoft digital links

      Optisoft has digital links from the Cash Module in both Enterprise and Optisoft.NET to the accounting packages Sage and Xero.

      What this means in plain English:

      Your sales data (captured in the Optisoft Cash Module) can be moved to your accounting system without manual re-entry.

      This supports MTD’s requirement for digital links, provided the transfer method is one of the approved digital link types (e.g., API, import/export, automated transfer).

      MTD in summary

      You (or your agent) must post VAT returns digitally using HMRC-approved software.If you’ve been doing this since April 2019, that requirement has already been in force.

      Digitally audit all VAT-relevant supplies (sales and purchases).Your accounts software handles purchases. The Optisoft Cash Module handles sales.

      From April 2026, these systems must be joined by digital links so data flows between them without cutting and pasting.

      Next Step

      Please contact us if you would like to find out more or wish to request the link.