Since April 2019, VAT registered businesses with a taxable turnover above the VAT threshold (currently £85,000) have needed to keep VAT records digitally and send returns using Making Tax Digital (MTD) compatible software.
From April 2022, these requirements will apply to all VAT registered businesses including those below the VAT threshold.
For some businesses this may necessitate changing their accounting software but if you are already using Xero then all you ned to do is sign up for MTD for VAT with HMRC. HMRC will send you an email within 72 hours confirming you are on the new service. You can then connect Xero to HMRC and use the MTD VAT return.
If you are not already using MTD compatible software and are worried about making the switch, just get in touch. We can help you transfer over from your old system to Xero and provide training for you and your team to show just how simple accounting with Xero is.
