Group VAT Returns in Sage50cloud or Xero | It's a little bit complicated ... |
Posted by Alison Mead on 15/06/2020 @ 8:00AM I received an email yesterday from an accountant who admitted he had no clue how to do group VAT returns in a making tax digital way with Sage50cloud or Xero. It reminded me that I haven't done a blog post about this yet, so here goes ... It's a little bit complicated to do a group VAT return in Sage50cloud or Xero, but it is possible! copyright: asawinklabma / 123rf If you have Sage50cloud then you can download a 2nd piece of software (Sage MTD Submissions Module) for doing group VAT returns which can consolidate the VAT from multiple companies and then do your making tax digital return as normal from this add on software.
The returns then show as pending rather than submitted in the individual companies and I then do an intercompany journal entry to allow for the fact that only one business in the group will be paying the whole bill. If you need help and support with setting up your own system and journals then one of my handholding sessions would be ideal for you.
When I asked Xero about group VAT returns, they said they had no way to do a making tax digital compliant return direct from Xero and so I had to produce my own workaround, which is ok at the moment but might not work when HMRC change the rules. To be honest they have more on their plate to worry about than making tax digital.
"I follow a similar process for Xero as I do for Sage50cloud, but
I have to do it manually!"
Again I calculate the VAT in each company and then publish in Xero, but choose not to submit to HMRC at this point. I save a copy of each VAT return in a spreadsheet and then manually consolidate the figures onto one master group VAT return sheet.
I have chosen to use Taxcalc to submit spreadsheet VAT returns to HMRC, but you can use any bridging software (including a separate Xero subscription) which allows an excel spreadsheet to be imported. Again I also do a manual journal between companies to allow for the fact one company pays the entire VAT bill.
This is not ideal, but is the best method I can find for now. Until next time ...
ALISON MEAD
Would you like to know more? If anything I've written in this blog post resonates with you and you'd like to discover more, it may be a great idea to give me a call on 01604 217365 and let's see how I can help you. About Alison Mead ... |  | | Alison loves bookkeeping and supporting bookkeepers. She has been helping clients to be better bookkeepers in Sage 50 for over 24 years and has been Xero Accredited in accounts and payroll for a number of years too.
She specialises in a very unique hand-holding method of training, helping bookkeepers and business owners to use their accounts software as and when they need support in setting up and producing their invoices, reports and financial information.
Alison combines her role at Silicon Bullet with her Forever Living network marketing businesses and is often to be seen at business networking meetings as she likes to keep busy.
You know what they say: if you want something done well ask a busy person!
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