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  1. VAT - Automatically calculate VAT using the Marginal Scheme

    56 votes
    22 comments  ·  For small businesses » Accounting features  ·  Admin →
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    submitted  ·  AdminHannah G (Admin, Xero) responded

    Hi everyone, thanks for your interest in this idea.

    For now, I wanted to share that we're aware some users have the following process to record their transactions. The example uses a vehicle with a purchase price of £1500, and a sale price of £2000.

    1. Record the purchase of the vehicle on a purchase Bill for the full purchase price of £1500 with a tax rate of VAT Exempt. So the purchase is recorded in box 7 on the VAT return.
    2. Record the sale of the vehicle on an Invoice for the full £2000 - using the Tax Exclusive option, and then manually changing the VAT calculated to the required amount - £83.33 (i.e. 20% on the profit of £416.87 or 1/6 of £500) by clicking the small plus box above the Tax Rate.

    This will mean that you only charge £83.33 VAT for the overall profit figure, and ensuring the correct amounts are reflected in boxes 1, 3, 5 and 6.

    You could…

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    Christian Somerville commented  · 

    Do we know if there is anything specifically for Margin Scheme from Xero in the pipeline as an update?

    Christian Somerville supported this idea  · 

  2. Overpayments - Create Overpayments with Tax on for cash basis VAT

    10 votes
    submitted  ·  1 comment  ·  For small businesses » Business features  ·  Admin →
    How important is this to you?
    Christian Somerville supported this idea  ·