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.

  1. Create a Flat Rate VAT Return for your current VAT period setting.
  2. 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.
  3. In the first tab, click Update. You'll now see From and To date fields.
  4. Select the period when the old rate was used, then enter the old rate. Click Update.
  5. Publish the return without filing with HMRC.
  6. Export the VAT Return in the format of your choice.
  7. Create a new draft VAT Return and follow the instructions above to see the From and To date fields.
  8. Select the period from when the new rate began, then enter the new rate. Click Update.
  9. Publish and export the second return.
  10. Go back to your Financial Settings and change the VAT period back to your normal frequency.
  11. Manually combine the two exported returns and file with HMRC outside Xero.
Xero creates a flat rate adjustment journal when you publish each return.

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