MTD for Income Tax.
Simplified.

Vibe Books is designed for sole traders who need MTD for Income Tax but are not VAT registered.

If you're a sole trader with qualifying income over £50,000, you should have been using MTD-compatible software since 6 April 2026. Over £30,000 it's 6 April 2027, and over £20,000 it's April 2028. VAT registration is separate and generally applies when VAT-taxable turnover exceeds £90,000.

No. Vibe Books supports MTD for Income Tax record-keeping and submissions. It does not currently support VAT returns or MTD for VAT. If you are VAT registered, or close to the VAT registration threshold, you may need separate VAT software or advice from an accountant.

The UK VAT registration threshold is £90,000 of VAT-taxable turnover. Two tests apply, and either one can require you to register. As a sole trader you are normally one taxable person, so HMRC looks at your combined VAT-taxable turnover across all your sole-trader activities — not each income source alone.

The historic (rolling 12-month) test. If at the end of any month your VAT-taxable turnover in the last 12 months has gone over £90,000, you must tell HMRC within 30 days of the end of that month.

The 30-day forward-looking test. You must also register if you expect your VAT-taxable turnover in the next 30 days alone to go over £90,000 — for example because you have just signed one large contract. That is a separate rule from the 30-day notification deadline above; it can apply even if the last 12 months are still under the threshold.

Residential property rents. Standard UK residential letting is generally exempt from VAT, so it does not count toward the £90,000 threshold and does not by itself require VAT registration. Commercial property, some holiday lets, and optional VAT on property can be different. Vibe Books currently records self-employment only, so any property income you have sits outside the app — check it against the HMRC rules separately.

Because Vibe Books supports MTD for Income Tax only — not VAT or MTD for VAT — we show a dashboard heads-up when your combined booked sales across all income sources in the MTD year approach the threshold. That figure is an approximation: we count your turnover (sales) category and not receipts such as grants or bank interest, some sales are themselves VAT-exempt or out of scope, and the actual VAT tests are the rolling 12 months and the 30-day outlook, not the tax year. The dashboard cannot see a contract you have not booked yet. The on-screen warning is to prompt you to check the rules with HMRC or your accountant; it isn't an authoritative trigger. See HMRC VAT registration guidance.

Open the app on any device, tap Scan Receipt, and point your camera at a paper or on-screen receipt. Claude AI reads the image and automatically extracts the vendor name, date, amount, and the most likely expense category — all fields are pre-filled for you to review and save in one tap. No typing, no manual entry. The feature is included on every plan, including Free, and works on iOS, Android, and desktop browsers via file upload.

Vibe Books handles digital record-keeping, quarterly submissions and the Final Declaration — the MTD compliance part. You can still use an accountant for complex tax planning or to review your figures before you submit. You can export your books to Excel, CSV, or PDF (Solo, Duo, and Pro) any time to share with them.

They are summaries of your income and expenses sent to HMRC four times a year for each income source. They are not your full year-end return. Under MTD for Income Tax, year-end is completed with a Final Declaration — the final submission in the MTD flow, not a separate Self Assessment filing outside the software.

We're applying to appear on HMRC's official list of software compatible with MTD for Income Tax. You can use Vibe Books for full record-keeping now, and in sandbox/test mode with HMRC. Higher earners (£50k+) have needed MTD-compatible software since 6 April 2026. We're still working toward recognition for that group. £30k+ earners follow from April 2027; we aim to be recognised ahead of that date too. If you're in scope and need software HMRC already lists today, use HMRC's compatible software guidance to choose a product that fits your situation. Contact us if you're unsure how Vibe Books fits alongside other tools.

Not in your first year! For 2026/27, HMRC has a "soft landing" — you won't get penalty points for late quarterly updates. It's the perfect time to get used to the new rhythm without the stress of fines.

The soft landing doesn't apply to your Final Declaration. Missing this will still result in a penalty point, so we recommend using our automated reminders to stay on track.

Points below the threshold drop off automatically after 24 months. If you have reached the threshold, you clear your record by submitting on time for 12 months and filing anything still outstanding from the previous 24 months. Vibe Books tracks your deadlines so you are less likely to reach the £200 "threshold" fine in the first place.

Absolutely. Upgrade, downgrade, or cancel from your account settings at any time. If you cancel a paid plan, you keep access until the end of the billing period, then revert to the free plan.

Yes. Your data is encrypted in transit (HTTPS) and at rest. We never sell your data to third parties. You can export everything as JSON, Excel, or CSV at any time, and request full deletion when closing your account.