Xero Making Tax Digital Update – February 2021
Following the news that all VAT registered businesses must be signed up to Making Tax Digital (MTD) by April 2022, Xero has been working on further updates to make this transition as easy as possible for your business.
This includes phasing out their ‘Classic VAT’ report and opting for the more up-to-date non-MTD style for business on the Standard and Flat rate VAT schemes.
Screenshots that may be useful to reference:
What is new about this report?
- Run the VAT Return for a custom date range to view VAT transactions for set periods
- Review transactions by both VAT box & Tax Rate, for full visibility
- Gives you the ability to add adjustments
- View all your finalised returns in one place
- Apply Postponed VAT Accounting (PVA) adjustments straight to Xero
Login guide via:
- The classic version of the VAT Return: click Get Started with new VAT
- The MTD screen: click Go to VAT returns without MTD
- The ‘How would you like to do your VAT?’ screen: select VAT without MTD, then Continue to VAT
Whilst we recommend signing up to MTD as early as possible, if you are not ready to make the move the non-MTD VAT Return is designed for you, as it looks very similar to the existing MTD report. This means that when April 2022 comes around there will be no surprises.
Note: If you signed up for Xero before 23 November 2020, you will still be able to view the Classic VAT Return and have the option to switch between the two.
Count On Cardens
Get in touch with Cardens if you have any questions on becoming MTD compliant or Making Tax Digital for VAT. As a Xero Platinum Partner, you will be in safe hands knowing that we have the experience and knowledge to help you get the most from Xero.