Making Tax Digital for VAT Resources
Browse our latest articles and guides covering everything you need to know about MTD for VAT.
Everything you need to know about MTD
Our Making Tax Digital ‘cheat sheet’ will help you understand exactly what you need to do to comply with MTD for VAT.
It covers everything you need to know about what MTD for VAT means in practice, including answers to your most common questions.
Tips to help you prepare for MTD for VAT
We share three tips to help UK small business owners prepare for MTD for VAT.
From working closely with your accountant to using the right digital tools and software, this guide will help ensure you’re fulfilling your obligations to HMRC.Learn more
Overcoming obstacles to digitalisation
Small business owners face many challenges when moving towards digitalisation.
Xero’s Glen Foster explores how small businesses can overcome these challenges in order to comply with Making Tax Digital for VAT.
Making Tax Digital for VAT made easy with Xero
Our webinar explores what MTD for VAT means for you and how you can prepare and submit your VAT returns in Xero after April 2022.Register for webinar
The basics of using Xero for business
Join our weekly webinar to learn more about the key features of Xero accounting software, including how to file a MTD VAT return with HMRC.Register for webinar
Stay tuned for Xero Education Month
We’ll be bringing you a wealth of Making Tax Digital webinars during Xero Education Month to help you better understand your Making Tax Digital obligations.Stay tuned
Your Making Tax Digital questions answered:
MTD for VAT requires all VAT-registered businesses with a taxable turnover above £85k to keep their records digitally and submit their VAT Returns to HMRC using MTD software, such as Xero. From April 2022, all VAT-registered businesses must follow MTD requirements, regardless of turnover.
You must use HMRC-recognised software to keep and preserve digital records. The software must also allow you to submit a VAT return, supply HMRC with VAT data, and receive information from HMRC via an API.
No, you won’t be automatically signed up to MTD for VAT. This is because HMRC needs to verify your information and migrate your record to their MTD system.
You’ll need to sign up your business with HMRC using your existing Government Gateway Login and VAT Number. Once you’ve authorised Xero to connect with HMRC, you’ll be able to submit MTD VAT Returns directly from your Xero account.
The same information as before – the standard nine box values, plus details identifying your business. Additional information might be required in the future, but the details and timings haven’t been specified.
All Xero subscriptions currently supporting the submission of a VAT Return will support MTD for VAT – and at no extra cost.