What you need to do now the Making Tax Digital rules are in place
The new MTD for VAT rules are now in place for those people who are compulsorily VAT registered (those exceeding £85000 turnover).
These businesses need to sign up to HMRC government gateway MTD portal and link this to their Xero.
We have tested the new system and can confirm that Xero is compatible with MTD for VAT. Once you are setup it changes very little apart from the appearance of the VAT return and that you submit via Xero – please note that you can no longer key the VAT return figures into the HMRC portal.
We recommend doing the above at least one week before the deadline for your first VAT return to allow HMRC to process your software activation.
Your first VAT return due under MTD will be one of the following quarters depending on the VAT date stagger you have:
1 April to 30 June 2019 due to be filed by 31 July 2019
1 May to 31 July 2019 due to be filed by 31 August 2019
1 June to 31 August 2019 due to be filed by September 2019
Below is a link with instructions on how to activate your HMRC MTD government portal and then link this to Xero.
Please note if you pay HMRC by Direct Debit you must sign up to the portal at least a month in advance.
If you have any queries please contact Jane Spraggs.