Updated 7th October 2020
We’re delighted to announce that Xero HQ VAT is now live and available to all UK partners – at no additional cost.
Xero HQ VAT gives you up-to-date visibility, control, and insight into your client’s Making Tax Digital VAT returns.
Read on to learn more about Xero HQ VAT and how it can help you manage your client’s Making Tax Digital VAT returns.
Key features and benefits
Many of you have adopted early versions of Xero HQ VAT and the feedback has been overwhelmingly positive.
Richard Howlett of CBA Services Limited told us Xero HQ VAT “is amazing” and Rebecca Holloway from Harold Sharp said it’s a “really good addition to Xero HQ.”
By giving you an overview of all your VAT clients in one dedicated place, Xero HQ VAT will make managing VAT clients that much easier, faster and more efficient.
Key features include:
- Easy and direct access within Xero HQ
- A dedicated VAT overview for all VAT clients
- Ability to organise and filter views
- Have an up-to-date view of when your clients Making Tax Digital for VAT returns are due
- Opt-in clients Xero subscriptions for Making Tax Digital for VAT directly from Xero HQ
For the time being the tool is suitable for your current Making Tax Digital clients and those eligible to sign up to the scheme.
But don’t worry, we’ll be adding more features soon so make sure you look out for announcements on our Making Tax Digital resource centre.
How to access Xero HQ VAT
UK partners can access the tool in two ways – either via Xero HQ (simply click on the new VAT tab and you’re done) or from within your client’s Xero subscription (just select the VAT Overview tab).
There’s no need to activate the tool – you’ll be able to use it instantly.
If you find that all your Making Tax Digital for VAT clients are showing on the ‘status unavailable’ tab, you’ll need to re-authorise Xero.
To do this, simply open the VAT return tab for one of the clients in the ‘status unavailable’ list and this will take you to their Xero account – where you can re-authorise Xero with HMRC using your agent services account credentials.
Once you’ve re-authorised Xero, all your clients’ status’ will be updated overnight.
Xero HQ VAT for Making Tax Digital
We know many of you have been working hard to help your clients become compliant with Making Tax Digital for VAT.
Since the 1 April 2019 start date, you’ve used our Making Tax Digital software to file VAT returns under Making Tax Digital for two key dates – 7 June and 7 August.
And with the second stagger of quarterly Making Tax Digital for VAT returns due 7 September 2019, we’re thrilled to offer you Xero HQ VAT to enable you to opt-in eligible clients in Xero – with real-time updates from HMRC – increasing efficiencies and saving you time.
Quarterly Making Tax Digital VAT returns due by 7 September
For businesses whose quarterly VAT period started on 1 May 2019, the second deadline for filing returns under Making Tax Digital is 7 September 2019.
Businesses paying VAT via direct debit need to be signed up with HMRC by 29 August 2019.
We encourage you to start preparing for this deadline now – particularly if you haven’t set up an Agent Services Account, linked existing agent-client relationships to it and signed clients up to Making Tax Digital.
Become compliant with Xero’s Making Tax Digital for VAT software
If you and your clients are still looking for HMRC-recognised Making Tax Digital software, then look no further.
Xero’s Making Tax Digital software is available on any Xero plan that supports VAT – at no extra cost and with no updates to install.
For clients using spreadsheets, or with complex VAT requirements, there’s no need to change systems.
All that’s needed to comply with HMRC is Xero’s Making Tax Digital for VAT bridging software – available in all Xero plans that support VAT at no extra cost and with no updates to install.
For more updates, guidance and resources to help you and your clients, visit our Making Tax Digital Resource Centre.
Gain a greater understanding of Making Tax Digital for VAT with these FAQs – and our answers.