MTD VAT Reports for Tradesmen: What AcFlow Exports and How to Use Them

If you're VAT-registered and trading in the UK, you already know about Making Tax Digital (MTD). HMRC now requires all VAT-registered businesses to keep digital records and submit VAT returns through MTD-compatible software. But what exactly does that mean for tradesmen — and how does AcFlow fit in?

What is MTD, and why does it affect you?

MTD for VAT became mandatory for all VAT-registered businesses in April 2022. The requirement is straightforward: you must keep your VAT records digitally and file your VAT return using software that connects to HMRC's API.

For most tradesmen, this means one of two things:

1. Using full accounting software like Xero, QuickBooks, or FreeAgent that submits directly to HMRC.
2. Using a spreadsheet + bridging software — where you maintain your own records and use a bridging tool to submit the figures.

AcFlow is built for tradesmen who want to stay in control of their own records without paying £30+/month for accounting software. The Reports feature exports everything you need to feed into your chosen bridging tool.

What is bridging software?

Bridging software acts as a digital bridge between your records and HMRC. You export your VAT figures (the nine boxes on the VAT return) from your records tool — in AcFlow's case, a CSV file — and import them into the bridging software, which handles the actual submission to HMRC.

Popular bridging tools include:

• VitalTax (Excel add-in, free tier available)
• 123 Sheets (spreadsheet-based, popular with small businesses)
• ANNA Money (MTD bridging, free for sole traders)
• Absolute MTD Bridging (simple and inexpensive)

These tools typically charge £1–£5 per submission or a small annual fee. For a sole trader submitting four times a year, the cost is minimal.

Important: AcFlow is not itself registered as MTD software and does not submit directly to HMRC. The Reports feature generates structured CSV exports that you import into your bridging tool of choice. This gives you full flexibility over which submission tool you use.

What does AcFlow export?

Head to Reports in your AcFlow dashboard. You'll find three export types:

1. VAT Return (Boxes 1–9)

This is the main export for MTD submissions. It contains:

• Box 1 — VAT due on sales (output VAT)
• Box 2 — VAT on EU acquisitions (£0 for most UK-only tradesmen)
• Box 3 — Total VAT due (Box 1 + Box 2)
• Box 4 — VAT reclaimed on purchases (£0 — expense tracking coming soon)
• Box 5 — Net VAT to pay HMRC
• Box 6 — Total net sales excluding VAT
• Box 7 — Total purchases excluding VAT (£0)
• Boxes 8 & 9 — EU trade figures (£0)

The CSV also includes a full invoice detail section — every invoice in the period with its date, customer, VAT rate, VAT amount, and gross total. This creates a complete digital audit trail, which is a core MTD requirement.

To use: select your VAT period (from/to dates), click Download CSV, then import the Box figures into your bridging software.

2. Income Summary

A tax-year breakdown of your income, month by month. Covers 6 April to 5 April — the standard UK tax year. Useful for:

• Self-assessment income tax returns
• Accountants who want a structured annual summary
• Tracking income trends across the year

Each row shows net income, VAT collected, CIS deducted, and gross total for that month.

3. CIS Suffered

If your main contractors deduct CIS from your invoices, this report shows every deduction in the tax year. You can use it to:

• Verify the total CIS deducted matches what you expect
• Reclaim overpaid tax via self-assessment
• Provide your accountant with a clean deduction schedule

The CIS report only appears if you have invoices with CIS deductions recorded in AcFlow.

Step-by-step: submitting your VAT return via bridging software

1. In AcFlow: go to Reports → VAT Return. Set the period dates to match your VAT quarter.
2. Review the figures — check Box 1 (output VAT) and Box 6 (net sales) look right for the period.
3. Download the CSV. Open it in Excel or a text editor to double-check the nine boxes.
4. Open your bridging software (e.g. VitalTax, 123 Sheets).
5. Enter or import the nine box values. Most bridging tools have a simple form — you copy the figures from the CSV summary section.
6. Submit to HMRC via the bridging software. You'll need to authenticate with your Government Gateway login.
7. Keep the CSV as your digital record for that period. MTD requires you to retain digital records for six years.

What about Boxes 4 and 7?

Boxes 4 and 7 relate to VAT on purchases — input tax you've paid on materials, tools, and other business costs. AcFlow currently tracks income (invoices) but not expenses, so these boxes show £0.

If you have significant purchase VAT to reclaim, you'll need to add those figures manually in your bridging software. For many tradesmen — especially those on the Flat Rate Scheme — this isn't an issue. If you're on standard VAT accounting and regularly reclaim input tax, consult your accountant to make sure the full picture is captured.

What about MTD for Income Tax?

HMRC is rolling out MTD for Income Tax Self-Assessment (MTD ITSA) from April 2026 for sole traders with income over £50,000, and April 2027 for those over £30,000. This is separate from MTD for VAT.

AcFlow's income summary and CIS exports are designed with MTD ITSA in mind. As requirements become clearer and the rollout progresses, we'll be adding features to support the new reporting requirements directly. Watch this space.

Ready to run your first report?

If you're already using AcFlow, head to Reports in your dashboard. Make sure your invoices have the correct issue dates and VAT amounts, then download your VAT return CSV for the last quarter.

If you're not on AcFlow yet, start for free — no credit card required. The Reports feature is available on all plans.