Do I need special software for Making Tax Digital for VAT?

Yes, you need MTD-compatible software to keep your VAT records digitally and to submit your VAT returns to HMRC — you can no longer file directly through HMRC's old online portal. A spreadsheet can still work as part of your record-keeping if it's linked to MTD-compatible bridging software that submits the figures digitally, but you can't just type numbers manually into HMRC's website anymore. Most small businesses find it simpler to use accounting software like Xero, QuickBooks, or FreeAgent, which handles MTD submission automatically.