Taxara Is Now HMRC-Recognised for Making Tax Digital for VAT

Composed by Taxara on

25/9/2026

Taxara has been officially recognised by HM Revenue & Customs (HMRC) as a compatible software solution for Making Tax Digital (MTD) for VAT and is now listed on HMRC's Software Choices service. The listing confirms that Taxara has been through HMRC's formal recognition process and met the technical, security, and compliance standards required to connect directly with HMRC's systems. It places Taxara among a select group of platforms available to VAT-registered businesses looking to meet their digital tax obligations directly through the platform, without relying on separate bridging software.

What Does HMRC Recognition Mean?

HMRC recognition is not a badge handed out freely. To earn it, a software provider must go through HMRC's formal recognition process and satisfy a rigorous set of technical, security, and compliance requirements set by the UK government. For Taxara, that means the platform has been verified to connect directly with HMRC's systems via their official API, enabling VAT-registered users to submit their VAT Returns and maintain fully MTD-compliant digital records without any manual workarounds. For anyone new to the concept, cloud accounting is what makes this kind of real-time compliance possible in the first place.

It is worth being precise about what this listing does and does not mean. Being listed on HMRC's Software Choices service confirms that Taxara meets the technical requirements for MTD for VAT. It is not a recommendation or endorsement from HMRC, which does not recommend one piece of software over another. The choice of which MTD-compatible software to use remains entirely up to the business or individual.

In short, VAT submissions made through Taxara go straight to HMRC. No double entry, no manual uploads, and no last minute scramble at deadline time.

What HMRC Requires From Recognised Software

To be recognised for MTD for VAT, a piece of software must be able to:

Create and store digital records of VAT-related transactions
Submit VAT Returns directly to HMRC through the platform, without bridging software
Receive information back from HMRC, such as confirmation of submission

Taxara meets all three requirements natively, which is exactly what this recognition confirms. These are not arbitrary rules. They are part of the broader shift toward Making Tax Digital for the self-employed, and Taxara was built around them from day one.

WHAT THIS MEANS FOR YOU

Taxara users can now submit MTD-compliant VAT Returns directly to HMRC, with no third-party bridging software, no manual workarounds, and no added stress.

Why This Recognition Matters Right Now

MTD for VAT already applies to all VAT-registered businesses, regardless of turnover, following the final phase of its rollout in April 2022. Any business with taxable turnover above the VAT registration threshold must register for VAT and keep digital records using compatible software. Whether you are registering for VAT for the first time or moving away from a provider that relies on bridging software, choosing an HMRC-recognised platform removes one of the biggest uncertainties self-employed people and small business owners face: whether the tool they rely on will actually be accepted by HMRC when it counts.

With Taxara's recognition now confirmed, users do not need to wait, evaluate alternatives, or worry about compliance gaps. The infrastructure is already in place.

How Taxara Supports MTD Compliance

Taxara was built to make financial management effortless for the self-employed. The platform is powerful enough to keep users fully compliant, yet simple enough to need zero accounting experience. It is part of why Taxara is regularly named among the best tax apps for sole traders in the UK.

The AI-powered toolset handles the heavy lifting automatically: scanning and categorising receipts the moment they are photographed, calculating VAT owed in real time, generating professional invoices in seconds, and preparing every VAT Return ready for submission. When a VAT Return is due, Taxara is ready, and so is the user.

Whether it is a taxi driver logging daily fares, a barber tracking weekly takings, a plumber managing project invoices, or a freelancer juggling multiple clients, Taxara is built for the way people actually work. It is available on iOS, Android, and via the web, so it goes wherever the business goes.

Taxara At A Glance:

HMRC-recognised for Making Tax Digital for VAT
AI receipt scanning and automated bookkeeping
Quarterly VAT submission built in
VAT tracking and AI financial reporting
No accounting experience required
Free plan available, Premium from £6.99/month

A Milestone That Reflects Our Commitment

Earning HMRC recognition is not just a technical achievement. It is a statement of intent. It reflects a belief that every self-employed person in the UK deserves access to professional-grade financial tools without the professional-grade price tag or complexity.

As an official member of BASDA (Business Application Software Developers Association) and now listed on HMRC's Software Choices service for Making Tax Digital for VAT, Taxara stands as a credible, trusted, and forward-thinking partner for the UK's self-employed community. This recognition is the foundation for what comes next.

Thank you to our users, our development team, and to HMRC for their partnership throughout this process. This milestone belongs to everyone who believes in a simpler way to do taxes.

Not Sure Where to Start?

Whether you have already registered for VAT or are approaching the threshold for the first time, now is a good time to make sure your record keeping and submissions are fully MTD for VAT compliant.