The next phase of Making Tax Digital (MTD) for VAT is on its way, and soon. From April 2022, VAT-registered businesses with taxable turnover under £85,000 that are submitting VAT via the HMRC portal or through the post will have to maintain records digitally and file through MTD-compatible software.
MTD for VAT may feel like a point of frustration for some small businesses, who have struggled with the maddening uncertainty of the past two years only to emerge and face further, government-mandated disruption.
But this isn’t the whole picture, with MTD for VAT a real effort to revolutionise the tax process, making it easier and more efficient for small businesses, who can also benefit from a gentle nudge in the digital direction.
However, we understand that reading about the importance of taking your medicine isn’t always as compelling as it could be. This is why we at Xero created a series of videos that answer small businesses’ questions regarding MTD for VAT, helping you tackle your compliance conundrums.
What to expect
Our MTD for VAT video series sees our very own experts address pressing questions you may have as a small business owner preparing for MTD for VAT.
Whether you’re just getting started and looking to understand more about MTD, or you’re further down the road to compliance and have more specific questions, like how you submit an MTD VAT return if there are partial exemptions, we’ve got you covered.
And small business advisors can find plenty of support here, too. With accountants and bookkeepers offering vital guidance to small businesses making this journey, our video outlines precisely what their role is, and how they can ease this transition for affected clients.
While these videos should answer all your questions about MTD for VAT – and possibly many more you hadn’t thought of yet – you can also check out Xero’s handy resources for accountants and small businesses, including a breakdown of the key deadlines for MTD.