Next month HMRC will begin writing to all VAT registered companies not yet registered for MTD to advise that with effect from April 2022 all VAT registered companies regardless of turnover must be compliant with MTD.
Public notice 700 /22: https://www.gov.uk/government/... gives detailed information regarding the regulations; specifically which digital records need to be kept and return requirements for MTD. It also details the conditions and procedures to claim for exemption for MTD. Being below the VAT threshold will no longer be a condition of exemption after April 2022.
For many small businesses registering for MTD may require a change in their accounting software or procedures and Xero is of course approved by HMRC. April 2022 may still seem some time away but it is worth starting to plan for the change now. For more information regarding using Xero for MTD just follow this link: https://www.xero.com/uk/progra... or get in touch with us direct if you would like help with how to easily migrate your current system to Xero.
