Create multiple flat rate VAT Returns if the flat rate changes
If you use a flat rate VAT scheme, you might need to create VAT Returns for multiple custom periods if the VAT flat rate percentage changes during a VAT period. Manually combine the reports to file with HMRC.
- Create a Flat Rate VAT Return for your current VAT period setting.
- In a new tab in your browser, go to your Financial Settings and change the VAT Period to a different setting. For example, if you normally file your VAT quarterly, change the period to monthly.
- In the first tab, click Update. You'll now see From and To date fields.
- Select the period when the old rate was used, then enter the old rate. Click Update.
- Publish the return without filing with HMRC.
- Export the VAT Return in the format of your choice.
- Create a new draft VAT Return and follow the instructions above to see the From and To date fields.
- Select the period from when the new rate began, then enter the new rate. Click Update.
- Publish and export the second return.
- Go back to your Financial Settings and change the VAT period back to your normal frequency.
- Manually combine the two exported returns and file with HMRC outside Xero.