🇬🇧 Ledger-Integrated VAT — Making Tax Digital

UK VAT Accounting Software That Balances Itself

Every sales invoice and supplier bill posts simultaneously to your double-entry ledger and your MTD VAT return data — zero manual reconciliation.

Making Tax Digital ready Double-entry bookkeeping Real-time P&L & balance sheet No credit card required

VAT & Accounting — Unified, Not Bolted Together

Most UK businesses run bookkeeping in one tool and VAT in another. ETaxFlow merges both into a single ledger so nothing falls through the cracks.

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Dual-Purpose Posting

Every transaction posts to your chart of accounts AND to the correct VAT return box simultaneously — standard 20%, reduced 5%, zero-rated, and exempt.

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VAT Control Account

Output VAT and input VAT are tracked in dedicated control accounts so your balance sheet always matches your VAT liability to HMRC.

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Bank Reconciliation

Import UK bank statements and reconcile VAT payments, refunds and adjustments directly against your general ledger.

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Audit-Ready Trial Balance

Generate a trial balance at any date with VAT entries clearly separated — ready for accountants and HMRC enquiries.

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Input Tax Recovery Tracking

Automatically calculates recoverable input VAT and records the net payable or refundable amount each period.

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Multi-Currency Accounting

Record transactions in USD, EUR or any currency. ETaxFlow converts to GBP at the invoice-date rate and posts the FX gain/loss automatically.

How VAT Flows Through Your Books

From invoice creation to MTD-ready VAT data — without touching a spreadsheet.

1

Raise Invoice or Bill

VAT is calculated and classified automatically per line.

2

Posts to Ledger

Dr/Cr entries hit Revenue, AR/AP, and Output/Input VAT.

3

Updates VAT Return

Every entry populates the live MTD-ready VAT draft.

4

Review & Close Period

Review the VAT figures, hand off for MTD submission, and lock the period.

VAT Accounting — FAQs

A VAT calculator simply computes 20% on an amount — it doesn't record anything. ETaxFlow posts every sale and purchase to a double-entry ledger, tracks the running VAT position, and prepares MTD-compatible VAT return data at period end.

Yes. ETaxFlow generates MTD-compatible VAT return data from your live accounting records, covering the 20% standard rate and reduced/zero rates, in the digital record-keeping format Making Tax Digital requires.

Each invoice line is classified individually — standard 20%, reduced 5%, zero-rated, or exempt. ETaxFlow splits the output correctly with no manual apportionment needed.

Yes. ETaxFlow's import wizard accepts CSV and Excel files, and our onboarding team assists with migration during setup.

Expenses can be entered directly or via the bank feed. VAT on expenses is claimed as input tax, provided the supplier has issued a valid VAT invoice, which ETaxFlow validates on entry.

See Your VAT & Accounts in One Place

Run your full UK accounting and MTD VAT prep on ETaxFlow — no spreadsheets, no reconciliation headaches.

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