How the Flat Rate Scheme for VAT works in Xero

Great video, thank you. Does Xero calculate whether you are a limited cost business? I understand that if your cost of relevant goods is less than 2% of turnover, you have to apply the percentage at 16.5% or do you have to calculate this manually before choosing the flat rate percentage? Also, how does Xero differentiate between relevant goods and non relevant goods? Thank you

How should I be claiming my cap ex VAT if paying for something monthly? 🤔 Thank you for your videos 😊

This video really helped me setup my VAT scheme in Xero. Really useful and clear. Thanks 😊

Great video.

Really helpful, i'm loving your videos'. Great at explaining on simple terms for me whos just learning! For the large expenses over £2000 does this need to be a physical item or can it be a service purchased, i.e. accreditation fees?

Thanks. When does flat rate adjustement show on P&L? after submitting the vat return?

Great work Thanks

valuable❤❤❤❤ thnx mam for such a beautiful explaination

Just what I needed - but what is the difference between flat rate accrual and flat rate cash

Very helpful, thank you. I didn't realise the Flat Rate %'s applied to the gross figure not the net.

Is this right that in the year end accounts the net profit is higher and we have to pay more corporation tax?

This was really helpful thank you. We have some tax exempt sales which are set up as tax empt in Xero but for some reason are being included in the flat rate calculation. It would be great if you could cover this in a video as well please. Thanks.

Thank you, very clear. Do you get a reminder of when you need to adjust for the 1% after 12 months? We have just started a Ltd company and can't quite decide whether we should be VAT registered or not? Do you have any videos as to how to decide when to register? I am thinking that if selling more to VAT registered companies then it makes more sense to be VAT registered. If it is more to individuals not being VAT registered helps to be price competitive. Obviously, this is if the VAT threshold is not met. Thanks again, have watched several of your videos now, and all brilliant.

Thanks for explaining

Very helpful thank you!

Hi! Does the Flat Rate Scheme Adjustment in the P&L get created once you finalise the vat return or on each and every sales invoice posted please?