The third and final episode in my HM Revenue & Customs blogging trilogy this week concerns a new capability we’re opening up today.
For the UK, the HMRC’s Flat Rate Scheme (FRS) for VAT is a beautifully simple scheme for businesses who don’t have an accounting system, but a beautifully complicated scheme for businesses who do have an accounting system and want to take advantage of its benefits.
The good news is that as of today, Xero now supports the Flat Rate Scheme and we promise to keep it simple for you.
There’s a few changes to your VAT rates required – so please take care to check with your accountant to ensure you know the rules, such as the VAT reporting requirements you need to be mindful of if you switch mid-quarter etc., and then switch on the FRS from the Financial Settings page in Xero.
Once you are registered with HMRC, they will give you a rate. Simply enter in your Percentage Rate into our new Flat Rate VAT Return and Xero will calculate the right amounts for you.
You can then file your return as you would normally.