VAT ON XERO

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VAT On Xero
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How it works

• You can access the VAT overview if you've
  switched to Xero's MTD VAT return. The VAT
  overview links to HMRC, and updates when you or
  another user opens it for the first time during
  the day.
• To open the overview
• 1.      In the Accounting menu, select Reports.
• 2.      Find and open the UK VAT Return.
• 3.      (Optional) To include a summary of your
  VAT information on your main Xero dashboard,
  select View summary on dashboard.
• You need the adviser or standard (with view
  reports) user role to access your VAT information.

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Your secure connection to HMRC

• When you set up MTD for VAT, it allows HMRC to
  send information to your Xero account. It also
  lets you send returns to HMRC.
• Both you and your accountant can set up a
  connection to HMRC, and access your MTD VAT
  returns. You can connect using your Government
  Gateway ID and your accountant can connect using
  their agent services account.
• You can remove the authorization youve given
  Xero to connect with HMRC (HMRC website). If you
  remove the authorization, you need to set up MTD
  for VAT again before you can file VAT returns
  from Xero.

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Sections on the VAT overview

• If you've set up MTD for VAT, youll see three
  sections on your VAT overview
•         VAT information from HMRC
•         Needs attention
•         Filed
• If you haven't set up a connection for MTD for
  VAT, for example because only your accountant
  needs full access, you'll only see filed returns.

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VAT information from HMRC

• VAT amount due/refundable shows the current
  total due to HMRC. This balance might include
  amounts from previous periods or advance payments
  and is downloaded from HMRC daily.
• Payment due shows you when your next payment is
  due. If you pay your VAT bill by direct debit
  (HMRC website), HMRC sets the date to take
  payment from your account. You can click on View
  previous payments to see the payments HMRC has
  recorded for you. Contact HMRC if you have
  queries about the payments.
• Payment method shows how HMRC expects you to
  make payment. For example, direct debit or direct
  credit will show if you've set up these
  arrangements with HMRC. If you dont have a
  payment method set up, this field shows as Not
  supplied by HMRC.

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Needs Attention

• This section shows the VAT periods that HMRC want
  you to file returns for. Xero lists VAT periods
  when they become available on the first day of
  the new period.
• To open the VAT return for a period, click
  Review. You can review the details for any VAT
  period listed, but you can only file a return for
  the earliest period.
• You cant file a return before the return period
  has ended, nor file a return for a custom period.
  However, you can view transactions for a custom
  period.

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Filed

• This section shows all past returns filed with
  MTD for VAT whether you filed them through Xero
  or outside of Xero (eg using another software
  provider).
• The VAT amount due or refundable for each return
  also displays. This is a historical amount and,
  unlike the value in the VAT information from HMRC
  section, doesn't reflect any payments youve
  made.
• To open a filed VAT return, click View. If the
  return was filed from Xero, you can then click
  Download VAT receipt to download a PDF receipt
  for your records.

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In Conclusion

• XERO has made it easy and quick to prepare and
  file return. It also incorporates all the
  different accounting schemes saving hours of
  time, in addition to being more accurate.
  However, setting this up and VAT planning is
  something that still requires a human touch. This
  is where Cheylesmore Accountants comes in to help
  the client with.

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Contact Details
If you are looking for expert accountants to help
you with your business then you can contact us at
[phone] or write us an email at
info_at_cheylesmore.com.
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