How-to Guides

Making Tax Digital: The Best Business Card for UK Companies (2026)

By Afshin · 11 June 2026 · 6 min read

Making Tax Digital (MTD) has turned record-keeping from a once-a-year scramble into a continuous, digital process. For UK limited companies, the easiest way to stay compliant is to stop typing in expenses by hand — and let a connected business credit card do the work. Here is how to set it up in 2026.

What Making Tax Digital means for limited companies

MTD for VAT is already mandatory for all VAT-registered businesses: you must keep digital records and submit returns through MTD-compatible software such as Xero, QuickBooks, FreeAgent or Sage. Spreadsheets alone are no longer enough unless bridged by compliant software.

MTD is also expanding across the wider tax system, and MTD for Corporation Tax is on HMRC's roadmap. The direction of travel is clear: digital, continuous, software-based record-keeping is becoming the norm for UK businesses.

Why your card choice matters for MTD

The biggest MTD headache is keeping every transaction recorded and categorised in real time. If your business card connects directly to your accounting software, each purchase appears in your books automatically — no manual entry, no lost receipts, no quarter-end panic.

Capital On Tap integrates with Xero, pushing card transactions straight into your ledger. Combined with free employee cards, every team member's spend is captured digitally and attributed correctly.

• Direct Xero integration — transactions feed in automatically
• Free employee cards so all company spend is captured digitally
• Statement exports for clean, audit-ready records
• 1% unlimited cashback while you stay compliant

Set it up in three steps

First, apply for a Capital On Tap card for your limited company and connect it to Xero. Second, move your recurring business spending onto the card so transactions flow in automatically. Third, issue employee cards to staff so their spending is captured the same way.

From then on, your digital records build themselves — and you earn 1% cashback on everything you would have spent anyway.

Eligibility and the £75 bonus

Capital On Tap is open to UK limited companies, LLPs and PLCs active on Companies House, with turnover from £24,000 and no unsatisfied CCJs in the last 12 months. Decisions are instant with a virtual card on approval. Like most business cards, it requires a personal guarantee from a director.

Apply with referral code 2REFY893A52 to receive a 7,500-point welcome bonus (around £75) after your first transaction, alongside no annual fee and unlimited cashback.