the independent online community for xero users
Flat Rate VAT in Xero?
Observant members may know I'm a bit obsessed with this - strictly with the lack of it in Xero.
I've also mentioned it to Team Xero on twitter - https://twitter.com/TeamXero - their response was "Still have a big To Do list to prioritise".
Since several of Xero's well-known competitors already have this, and I assume Xero are keen to get UK customers, I'd have expected a more helpful response.
I've also mentioned it to Team Xero on twitter - https://twitter.com/TeamXero - their response was "Still have a big To Do list to prioritise".
Since several of Xero's well-known competitors already have this, and I assume Xero are keen to get UK customers, I'd have expected a more helpful response.
Replies to This Discussion
-
Permalink Reply by Stuart Jones on -
@gsgordon, I agree with you. The Flat Rate Scheme is an important option for small UK businesses.
-
Permalink Reply by Martin Gatehouse on -
It is no big deal to set all 'non income' chart of account headings to 'No VAT' and then do a journal for the FRS VAT adjustment?
Xero is aimed at sole-traders, many of whom may have other sources of income outside their Xero business.
eg. rental property income, that will fall within the FRS calculation, and create output VAT due at flat rate, even though it is zero-rated! ... Not sure how may other providers cater for this!
-
Permalink Reply by Adrian Pearson on -
Hi "gs". I agree with Martin, flat rate VAT can be easily handled in Xero, in the manner he suggests. Ironically, some of the systems that say they handle the FRS may be misleading their users, and producing incorrect VAT returns because of the "other income" anomaly for sole traders. Don't let FRS stop you taking the Xero plunge. What accounts production system does your accountant use? (it may be IRIS or Sage). If it's IRIS, I will happily provide you with a chart of accounts, with the correct VAT codes, for you to import into Xero. Heck, if you invite me in as a user temporarily I will import it for you.
-
Permalink Reply by gsgordon on -
Thanks Adrian but our accountant uses Sage rather than Iris. Also we are a limited company rather than a sole trader. My concern was more about handling the rate changes on 1 Jan - easier if Xero did the FRS?
-
Permalink Reply by Stuart Jones on
-
With respect to both Martin and Adrian I can't help feeling the adjustment is a lot easier if you're an accountant rather than a business owner.
-
Permalink Reply by Martin Gatehouse on
-
I agree, the FRS adjustment is often a job for the 'accountant', and this is where the beauty of online collaboration kicks in. I do sort this out for some of my clients, Others are 'DIY'.
-
Permalink Reply by Martin Gatehouse on
-
Interesting point about the COA design. Personally, I dont like imposing a COA structure on clients just so it speeds up production of a document needed once a year. Most of the time, a carefully designed COA that suits the client's business is the way to go. Then you just have a mapping routine in Excel; VLOOKUP/ {SUM(IF..} etc, export the Xero TB to xl and generate the import file to Iris or Viz or VT or whatever.
-
Permalink Reply by Adrian Pearson on
-
Hi Martin, you make a great point regarding COA (Chart of Accounts) design being more important for the business owner's day to day information requirements, than for the reporting accountant perhaps just once a year. In our practice, most clients are however happy to work with a "default" COA that just happens to work for us also - and they can refine it to suit them by using "sub-account" codes under the main structure. It's often easier to provide support if the accounts structure is a familiar one.
-
Permalink Reply by gsgordon on
-
Hi Adrian,
We are now on the point of "taking the plunge" and opting for Xero despite the current lack of FRS. I am working on a COA to suit our Limited Company business and have taken on board the comments from you and the other contributors.
Our accountant (who uses Sage) will get involved in the FRS VAT issue, but it would be useful to see your "default COA" so I would like to take you up on your earlier offer. I'm not sure if you can post it here in some way?
George
-
Permalink Reply by Adrian Pearson on
-
No problem GS, I have put the file here for you: http://topaccountants.com/Downloads.aspx. Right-click on the link to save to your local machine. The file is a text file. To import it into Xero follow the help guide here: http://help.xero.com/uk/#Settings_ChartofAccountsCSV.
You will need to setup bank and other accounts separately. We use 668 for Petty cash, 673 for a Bank Deposit Account, 692 for the Bank Current Account and 760 for a Company Credit Card. We renumber Accounts Payable to 737 and Accounts Receivable to 586. This COA aligns with IRIS accounts production codes but will be a sensible structure for any limited company.
Hope this helps and let me know if you have any problems.
-
Permalink Reply by David Kime on -
I have been trying to get Xero to add a feature so that we can change the VAT amount - we need it to be able to use Xero for our bureau bookkeeping.
Here's a challenge for Xero - fully automated partial exemption. We deal with a lot of dispensing GP surgeries and golf clubs and we have to do some calcs outside accounting packages
Follow us @xerousers
Recommended services
Ledgerscope - for accountancy firms
Movemybooks - xero conversion tool
Topaccountants - blog on accountancy & tech
Receipt Bank - expenses management
Nativespace - value web hosting
CapsuleCRM - xero friendly CRM
Squarespace - for easy website creation
Latest Activity
Rich Anderson replied to Rich Anderson's discussion Donation and Donor Management for Churches (or other non-profit)
sam swaminathan replied to Rich Anderson's discussion Donation and Donor Management for Churches (or other non-profit)"Sales Invoices - can the unit price be more than 2 decimal places? Could not find the setting.... Thanks"
© 2012 Created by Adrian Pearson.
