HMRC introduced the first phase of Making Tax Digital nearly two years ago. They have now announced that non-MTD VAT submissions via software providers will not be supported from April 2021.
This means a change to filing non-MTD VAT returns via Xero.
What’s changing for Non-MTD VAT in Xero?
If you use Xero this means that quarterly VAT periods ending in December 2020, January 2021 or February 2021 will be the last VAT returns that can be submitted using the Non-MTD VAT return in Xero.
What do I need to do so I can keep filing my Non-MTD VAT Return after April 2021?
There are two options to consider and a decision to make about how to file in VAT returns in Xero. You can:
- Sign up to MTD for VAT with HMRC and then file VAT returns through the MTD VAT function in Xero. (you will have to do this from April 2022 anyway).
- If you are not ready for MTD, if you are under the VAT threshold or part of a VAT group. Xero have created a new non-MTD VAT report/return which can generate the VAT amounts and is live from 23 November 2020. You will have to take the report and manually type the figures into HMRC online – old style. This will also be the only non-MTD VAT return option in Xero for new Xero subscriptions from now on.
If you need any help getting MTD ready, or if you need us to guide you through non-MTD VAT returns in Xero, then please get in touch. You can call our Xero VAT experts on 01603 516122.
I was curious if you ever thought of changing the layout
of your website? Its very well written; I love what youve got to say.
But maybe you could a little more in the way of content so people could connect with it better.
Youve got an awful lot of text for only having 1 or two images.
Maybe you could space it out better?