VAT - VAT threshold warning for registration
Ability to have a warning message appear when turnover is reaching the VAT registration / deregistration threshold
Hi everyone, thanks for raising and supporting this idea of having more visibility or an alert when turnover is reaching the VAT threshold. This is something our team have picked up and taking a deeper dive into. No promises at this point but we'll keep you updated of any news here.
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Simon Armstrong
commented
I really did think that Xero already did this, but, as is often the case, it appears I was wrong. I am not alone in this since TaxWise accountancy in the UK state the following when advising how to keep a log of your VAT Threshold Limit: -
"Use MTD-compliant accounting software
Cloud platforms such as Xero, QuickBooks or FreeAgent automatically track rolling turnover and alert you as you approach the threshold."
The full article can be found here: -
https://www.tax-wise.co.uk/blog/vat-threshold-2025-2026-small-business/
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Andy Farrer
commented
this would be very valuable
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Giuseppe Colombi
commented
A warning message that the business must register is critical. A deregistration warning would be useful. If joining the VAT flat rate, a warning message that the turnover in the last 12 months exceeds the threshold limit to remain in the scheme is also critical.
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Sunny Hoyle
commented
this would be such an important feature, you'd think not too hard to deliver either.
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Nick Paddenburg
commented
Couldnt agree more and have been asking XERO for this feature year after year
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Chris Gook
commented
Tracking last rolling 12 months threshold and automatically only charging for the amount over the excess would be great
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Tiffany Da Silva
commented
Display a running total on the dashboard for the previous 12 months' turnover, to keep an eye on if a client is about to hit the VAT threshold.
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Tamara Young
commented
This is essential - we are currently having to look at 3rd party providers for this functionality.
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Daniel Mobbs
commented
Warning notifications for non VAT registered businesses approaching or breaching the VAT turnover threshold, based on revenue over the past 12 months, to contact their accountant about VAT registration with an option to silence the notifications if revenue would be a VAT exempt supply and/or a link to guidance on VAT registration with a warning of the penalty implications of late registration.