Common Xero VAT errors and queries

I have already published common Xero bank errors and queries and common Xero supplier and customer errors and queries.      In this third and final blog in the series I  will outline Xero VAT errors and queries.

Why it is important to publish your VAT returns in Xero

Even if you still file your VAT returns through the HMRC website (although with Making Tax Digital looming this may not be an option for much longer) it is still important to publish your VAT return in Xero as this marks all the transactions that appear on that particular VAT return so they cannot appear on another VAT return in the future.

If you do not publish the VAT return in Xero and any late invoices are entered, if you try to recreate that VAT return on Xero (i.e. in the case of an inspection from HM Revenue and Customs [HMRC]), Xero will include the late invoices in the VAT return figures, even though they did not appear on the original VAT return, as Xero cannot distinguish when the invoice was entered, it just uses the invoice date.  This means that, unless you publish your VAT return in Xero, you can never get back to the figures submitted at the time.

By publishing this return in Xero, any invoices or payments that are entered for an earlier period after the VAT return has been filed will be picked up on the next VAT return, as Xero will include any late transactions if a previous return has been published in Xero.  If a VAT return is not published in Xero, then Xero cannot pick up any of these late claims and all the input VAT on these late invoices will be lost.

To publish your VAT return in Xero once you have reviewed it, click on the green File VAT now button at the bottom of the VAT return, and click on the green File & Publish button on the next page.  If you want to file with HMRC through Xero enter your government gateway user ID and password on the next page and click the green File & Publish button now.  If you do not want to file with HMRC through Xero take the tick out of the “File now with HMRC” box and click the green Publish VAT button.  Just remember in this instance to go onto the HMRC website and file your VAT return before the due date.

If you need any help with Xero please contact me at the Carlisle Office or email me michelle.ruddick@saint.co.uk

 

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