VAT back to 17.5%
Happy New Year!
We’ve just done a small product release to bring the default rate for UK organisations back to 17.5%.
While some things have been automatically reset for you from 15% to 17.5%, there are some specific items we’d prefer you to check and reset yourselves just to make sure you have the right rates for your business.
Thus, after rubbing some more Xero brain cells together on the subject, we opted to take a small detour around some of the guidance we gave in December’s blog post – the upshot is we chose not to update all your upcoming repeating transactions as we said we would. Ultimately, we concluded that it would be inappropriate for us to change your overall repeating invoice amounts without your input (which would have happened with a rate change) so you’ll need to check and adjust these rates for any repeating invoices you have setup where appropriate. While this may give you a little extra work if you happen to have more than a handful of repeating invoices (if you’re having to do this with a bit of a hangover then we’re sorry!) – but we concluded that, all up, this was still the best approach. In some cases, you might also like to check default rates you’ve used in your Chart of Accounts – while these will be automatically updated for the most part, edited default rates might need to be confirmed.
Refer to our Help Centre – How do I deal with the VAT rate change from 1 January 2010 to see the full list of changes either made by us or required by you.