Getting ready for MTD for ITSA with Xero Go

From April 2024, businesses and landlords with business and/or property gross income over £10,000 per annum will need to keep digital records and use MTD approved software to update HM Revenue & Customs (HMRC) with quarterly summaries.

In response to this new reporting requirement, Xero has launched the new Xero Go App which we were able to watch a demo of whilst at its launch at Xerocon 2022.

Xero Go is a mobile app aimed at sole traders and landlords which will allow them to track and record their business transactions as they arise and ease some of the burden of the upcoming additional MTD admin requirements.

The software has three main areas of focus:

1. Expenses - The app uses a “Quickscan” feature to allow users to capture information on invoices and receipts and import that data into the software, suggesting categorisation of the expense.
2. Invoices - Users can use the software to create invoices for work undertaken, reminders can be set up for late payments and Stripe can be linked to the app to allow customers to pay faster.
3. Dashboard - The app also contains a dashboard that allows the business owner to easily track their business performance.

Business owners can invite their accountant to access their Xero Go subscription to allow data to be extracted for the preparation of annual financial accounts and the software can be configured to facilitate MTD for ITSA submissions.

If you would like to sample using Xero Go immediately rather than waiting until it will be mandatory or you would like to hear more about the upcoming reporting changes, please contact our office on 01524 67111.