Be aware that if you are a Xero user you will shortly be receiving a letter (if you haven’t already) from HMRC. The letter reminds businesses that from 1 April 2019, those VAT registered and with an annual taxable turnover above £85,000 will need to comply with Making Tax Digital and the new VAT reporting requirements.
For those that are affected, the letter asks you to speak to your accountant about signing up for Making Tax Digital. For clients of Raffingers, where we file your VAT return, we have already set up the Making Tax Digital account and are in the process of testing the platform. Our clients can therefore be rest assured that at this time, no further action is required. This should be the same for most businesses, where their accountant files their VAT return. However, you should check with them first.
For those that file their own VAT return, either through Xero or through the gateway, you will need to follow the instructions in the letter to sign up for Making Tax Digital. If you need help in this process, please get in touch.
HMRC Contacting Xero Users with the below letter:
Since 16 October, HMRC has been piloting its new VAT service and we are aware that Xero is currently in the process of beta testing its new VAT return for Making Tax Digital connection too. This will be made available to Xero customers in the next few months.
If you are affected by Making Tax Digital it is important you begin to prepare your business for April. Also, remember, that if you’re a VAT registered business with complex requirements, Making Tax Digital has been delayed until April 2019. More about this can be read here.
To keep up-to-date with the latest information on Making Tax Digital, register for our newsletter.
For help and advice preparing your business, contact our Partner and Making Tax Digital expert Lee Manning at lee.manning@raffingers.co.uk.