We’re pleased to announce that our bridging software feature is now live within Xero’s Making Tax Digital for VAT solution for Xero partners – at no extra cost.
Practice staff users will have access to this automatically, whilst business users can request access from our customer experience team. Please note that the bridging software solution is not available for those on the Flat Rate Scheme.
As of today, Making Tax Digital (MTD) for VAT is compulsory for most VAT registered businesses with a taxable turnover above the £85k threshold.
But with more than a million businesses affected by HMRC’s new scheme, many accountants have been struggling to convert clients to MTD-compatible software in time.
How bridging software can help
Xero’s bridging software feature allows businesses and agents to upload VAT figures directly from a spreadsheet into Xero, where Making Tax Digital VAT returns can be submitted securely and in real-time to HMRC.
Xero’s bridging software feature is available in all Xero plans that support VAT. You’ll need to sign up to MTD for VAT with HMRC and then enable MTD for VAT in Xero. Please note that the bridging software solution is not available for those on the Flat Rate Scheme.
For support getting started with Making Tax Digital, watch the video below or follow our guidance over at Xero Central.
Making Tax Digital for VAT in Xero
As well as ensuring compliance, Xero’s suite of MTD-ready products have built-in functionalities that will save you and your clients precious time when it comes to VAT. Features include:
- Knowing which VAT Returns are due
- Keeping a history of the VAT Returns that have been filed
- Calculating how much VAT is due
- Posting VAT Returns in real time and
- Identifying the method of payment.
Resources to help you with MTD
Check out our Making Tax Digital resource centre for everything you need to know about Making Tax Digital, including free guides and toolkits.
For more information speak to your account manager or email email@example.com.