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MTD IT adjustment to calendar quarters election
According to HMRC there can be an adjustment to the first MTD IT return, so that the submissions are based on calendar quarters, rather than the existing standard ones. This would help align the submissions to VAT periods and documents received/bookkeeping done. So for example, the first period would be 1st April to 30th June, instead of 6th April to 5th July 2026. I understand this may only affect businesses with a year end of 31st March.
Currently, Xero doesn't support this (confirmed 09.02.26).
Is this needed or is there a work around?6 votesThis is already possible within Xero! There is specific criteria but you are able to change the NTD for IT quarter dates. The criteria is as follows:
- You can only change the update period before the first quarterly submission is made. After that, the Update period type can’t be changed.
- If the year end is not 31 March, the business must use standard quarters.
- If calendar periods are chosen, the first year still starts on 6 April,
🙂
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