If your business is in the UK, depending on your registration, your business may need to a VAT return.
To prepare a VAT Return in Xero, follow the steps below:
- Go to Reports > VAT Return
- In “Ending:” select the period month end and click “Update”. Xero will pre-populate your report so make sure that the transactions you’ve entered in throughout the period are correct!
- Your VAT return and VAT Audit Report will be generated - review these reports.
- Once you’re happy with the reports, click “File VAT Now” and complete all the fields necessary to publish the report. Once you’re done click “File and Publish”.
- The “File VAT Return” window will appear. Check the box “File now with HMRC” and enter your details required and click “File & Publish”
Now you’re done! Easy wasn’t it?