In QuickBooks Online (QBO), the MTD tool cannot be used if you are not VAT registered, Kate. This tool is designed for maintaining digital records for VAT returns of businesses that are VAT-registered.

For reference, check out this article: Making Tax Digital (MTD) for VAT with QuickBooks Online. This covers everything you need to know and helps you manage your VAT obligations with confidence.

I recommend reaching out to HRMC for guidance on best practices for managing digital records under MTD for non-VAT-registered businesses. They may also be able to point you to methods that align with the requirements you'll need to meet.

If you have further concerns or questions about managing your sales tax settings in QBO, feel free to post a Reply below. We're here to help you.