Xero: Important Changes To Filing Of Non-MTD VAT Returns
Are you not quite ready for Making Tax Digital?
Posted by Alison Mead on 23/11/2020 @ 8:00AM
It’s been almost two years since HMRC introduced the first phase of Making Tax Digital (MTD) for VAT businesses. Xero has been working hard to ensure they have the right solutions as Making Tax Digital expands ...
Non-MTD VAT return option in Xero will be limited for new trials and subscriptions!
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HMRC recently announced that non-MTD VAT submissions via software providers will not be supported from April 2021. This means that quarterly VAT periods ending in December 2020, January 2021 or February 2021 will be the last VAT returns you can submit using the old VAT return in Xero.
To prepare for this change, you have two options:
Get registered for Making Tax Digital for VAT with HMRC and use MTD VAT in Xero before they are mandated to from April 2022
If you're not yet ready for MTD, such as those under the threshold or part of a VAT Group, you can generate the VAT amounts using the new non-MTD VAT return in Xero. Please note that you will be required to submit the return manually using HMRC online services, or by using MTD bridging software
The new non-MTD VAT return in Xero will be available from 23 November 2020 and is ideal if you aren't quite ready to make the move to Making Tax Digital in full.
It will also be the only non-MTD VAT return option in Xero for trials and subscriptions in future.
Until next time ...
Would you like to know more?
If anything I've written in this blog post resonates with you and you'd like to discover more, it may be a great idea to give me a call on 01604 217365 and let's see how I can help you.
About Alison Mead ...
Alison loves bookkeeping and supporting bookkeepers. She has been helping clients to be better bookkeepers in Sage 50 for over 24 years and has been Xero Accredited in accounts and payroll for a number of years too.
She specialises in a very unique hand-holding method of training, helping bookkeepers and business owners to use their accounts software as and when they need support in setting up and producing their invoices, reports and financial information.
Alison combines her role at Silicon Bullet with her Forever Living network marketing businesses and is often to be seen at business networking meetings as she likes to keep busy.
You know what they say: if you want something done well ask a busy person!
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