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Xero Expenses - VAT on mileage claims through expenses

Many are complaining about no VAT option on mileage claims through expenses. I can see why this would be timely to implicate as the fuel element changes and is different depending on fuel type and engine size.

But think for those that want to, we should at least have a VAT drop down. We could then create a new tax rate for each rate or even employee using expenses.

For example I have a director with a vehicle >2000cc Diesel I believe using the HMRC company car fuel rates this equates to 19p inclusive of VAT. Using the 45p for the first 10,000 miles the VAT is 3.1667p per mile. So I have created a code '7103 Mileage RK 45p' in the chart of accounts and added this to mileage under expenses so that RK knows which code to add to his mileage. Under code '7103 Mileage RK 45p' I have shown a default VAT of 7.037% of the 0.45p to give me the VAT of £3.1667. Obviously we could ask the employees to put in the fuel amount at 20% inclusive and the balance of the 45p at zero but not sure too many employees would do this.

The problem is with doing all this, still no VAT gets posted because there is no drop down for VAT and/or the VAT isn't coming through from the VAT default for the new code I have set up. I can't even adjust VAT via the bill option. Only option via the bill is to void it.

There are so many ways in which XERO could get this to work but to have no options but to make a manual adjustment via the VAT returns or journal seems a little wrong.

Also I have noted that I can't seem to run a nominal and add in columns 'Quantity' and 'unit price' so that I can create an excel download and easily work out the VAT without having to drill down to in to each transaction to see if 45p was used 5p for passengers or 25p. Can we have this added also to nominals? Thanks

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Regina Yaldren shared this idea  ·   ·  Report…  ·  Admin →
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  • Ryan Dempsey commented  ·   ·  Report

    This time saving feature is available in more basic book-keeping packages, such as FreeAgent.

  • Simon Pook commented  ·   ·  Report

    Absolutely correct, this should be an automated process even going as far as to say scrape HMRC website for the latest car fuel rate. We are in the 21st century and we pay enough for a "technical platform", so get technical and efficient

  • David Trangmar commented  ·   ·  Report

    If Freeagent can do it, then Xero should be able to a well.

  • Ehtesham Khan commented  ·   ·  Report

    Why do you not have this function already, please do so ASAP.

  • Sarah Kite commented  ·   ·  Report

    FreeAgent have the option to enter the vehicle details so it can claim the correct amount of VAT based on fuel advisory rates for that vehicle. Please add this feature ASAP.

  • Susan Frank commented  ·   ·  Report

    This function was available in the original expenses claims on Xero - it should have been carried forward - my clients need this flexibility to claim expenses correctly

  • Jane Pincher commented  ·   ·  Report

    At the moment i am asking staff to submit their mileage claim as an expenses claim. This is the easiest way to sort the VAT out.

  • Melissa Hawira commented  ·   ·  Report

    Hoping to add a feature that auto-populates the current KM rate so staff don't need to remember, and approvers don't need to manually check each claim. Could be a value which is input manually by the admin.

  • Rochelle Hayward commented  ·   ·  Report

    Users do not remember the rate and to have this automatically populate would be a time-saving feature as currently having to change manually when incorrect.

  • Alyson Wildman commented  ·   ·  Report

    The rate claimable is often standard across the whole organisation so should be able to be pre-set. Users do not necessarily know what the claim rate is. Should be able to set a car mileage rate and a cycling mileage rate.