As a small business, you may have heard of Making Tax Digital, the new rules that come into effect from April 2019 from HMRC, that affect all registered business above the £85,000 VAT register threshold.
HMRC are finally updating the way you do VAT returns and bringing it in to the modern age.
So the good news is if you’re a Xero customer, Xero is already fully compatible with Making Tax Digital.
There may be a couple of things you need to do to activate it however.
Go to the HMRC website which is at HMRC.gov.uk and follow the instructions there for setting up your Making Tax Digital account. And inside of Xero, once you click on the accounting tab and then VAT return, following the instructions that we provide you for completing the job and then you are good to go.
Once set up up you might notice that we’ve made a number of improvements to the functionality inside Xero’s VAT return capability.
If you’re not a Xero customer then don’t worry, go to Xero.com, take out a free trial, get familiar with how Xero operates and we’ll walk you through the process of getting ready for Making Tax Digital.
And if you still want some advice then speak to us and we’ll be more than happily help you through that.
Finally getting ready for Making Tax Digital shouldn’t be an expensive project and it shouldn’t take you very much time. Xero has lots of resources and guides that will help you walk through that process and get you set up and ready on time.
Until then many happy VAT returns.