Skip to main content HMRC’s XML retirement: a change to filing VAT returns through FreeAgent
As we revealed exclusively in our ‘On Target for 2021’ partner event last year, HMRC will retire its facility for filing VAT returns using XML software on 8th April 2021. This means that if you want to use accounting software to file VAT returns on behalf of your clients, you will need to do so using the software’s MTD connection. Here’s what this means in FreeAgent:
- If you currently make non-MTD VAT submissions on behalf of your clients in FreeAgent, you will need to set up your practice and each of your clients for MTD in order to continue filing VAT for your clients through the software from 8th April onwards.
- From 8th April, you will see a notice on the VAT return of any client whose MTD connection hasn't been set up. You will also see this notice in the ‘Statement of Account’ view within the VAT area of the client’s FreeAgent account. Clients with level 8 (full) access to FreeAgent will also see this information.
- In line with HMRC’s decision to retire the XML facility, the option to make non-MTD VAT submissions will be removed from FreeAgent on 8th April. From this date, the only way to file VAT on behalf of your clients in FreeAgent will be via the software’s MTD connection.
Looking for more information on the next stages of MTD? Join us on 21st April 2021 at 11am for our live ‘Making Tax Digital Base Camp’ virtual event.