We’re pleased to share that HMRC has today listed Xero on its list of software suppliers supporting Making Tax Digital for VAT. The news comes after two successful VAT returns using the beta version of Xero’s MTD functionality.
Linda Robinson, partner at Xero silver partner firm Gibson Whitter, was the first to test Xero’s MTD product and says: “The whole experience was seamless. It took no time at all, and Xero’s functionality worked really well.”
Cheryl Price, director of CH Accountancy & Bookkeeping, tested Xero’s MTD functionality on Thursday morning. “Everything just worked,” she says. “Xero has made my life so much easier, and the trial was really helpful. It’s been an honour to be part of the MTD journey and I’m really excited about what the future holds.”
MTD for VAT just months away
It’s now less than nine months until the first legislative changes for MTD come into force for UK businesses that are VAT registered and above the threshold. From 2019 these businesses will be required to keep their records digitally and submit VAT returns to HMRC using MTD-compatible software.
Alongside the MTD for VAT approved software suppliers list, HMRC has published two other documents that will help accounting firms and small businesses get ‘MTD ready’:
- A new VAT notice: This outlines formal amendments to the Value Added Tax regulations. It provides guidance for businesses who’ll be required to meet the new regulations and will show these businesses how they’ll meet their VAT obligations from April 2019 onwards. Included within this notice are the rules, criteria for exemption, definitions (i.e. what constitutes digital record keeping), and what this means for agents (those accountants who act on behalf of businesses to lodge VAT returns).
- A stakeholder communications pack: This includes FAQs and supporting messages to help get everyone ready.
Getting MTD ready: Preparing your practice today
At Xero, our goal isn’t to only provide MTD-compatible software, but also to support your business as it gets ready for what’s ahead. If you’re from an accounting practice, we can guide you through the process.
- Check out our MTD FAQ blog for more information on what Xero is doing to get ready
- Visit our MTD resource centre
- For Xero partners, speak to your Xero account manager who can help you get ‘MTD ready’
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