Xero/Accounts software for VAT Partial Exemption

[madmover]

One of my companies is partially exempt for VAT.
To say it's a pain, is an understatement. Can anyone recommend an accounting package which can cope with partial exemption?

We used to use Xero but I understand that this doesn't support the above, so i'm now left trying to work out what options we have.
Sage I believe is one possibility but I find it expensive, overly complicated and slightly outdated in many respects.

Has anyone else been through the above? If so, what do you use/recommend?

My accountant hasn't been much help on this one unfortunately. All my other businesses use Xero which makes life easy. It's just this one, and given we have alot of receipts to process, it's not feasible to amend stuff manually and backdate corrections for the last quarter, at the end of the quarter like Xero suggested.

Thanks in advance

A

[jammy-git]

In Xero you can set up certain bill accounts to have different tax classes?

How do you process your receipts currently? Manually? ReceiptBank?

[DaveH23]

madmover said:

Sage I believe is one possibility but I find it expensive, overly complicated and slightly outdated in many respects.

Has anyone else been through the above? If so, what do you use/recommend?

A

What sage package have you looked at? Sage Instant/50 can manage it fine.

Unless you have used an old version then I'm not sure what you mean when you refer to it being complicated and outdated.

Price fair enough but far too many people go for a solution far and above what they need.

[Eric Mc]

jammy-git said:

In Xero you can set up certain bill accounts to have different tax classes?

How do you process your receipts currently? Manually? ReceiptBank?

I don't think that's the OP's issue. When a business makes sales of which some are VATable (i.e. VAT charged at 20% AND Zero percent) and some are VAT Exempt, then there may be restrictions placed on the Input VAT that the business can reclaim.

He seems to be stating that Xero is unable to calculate the restrictions that would need to be applied to these Input VAT reclaims.

[madmover]

Eric Mc said:

I don't think that's the OP's issue. When a business makes sales of which some are VATable (i.e. VAT charged at 20% AND Zero percent) and some are VAT Exempt, then there may be restrictions placed on the Input VAT that the business can reclaim.

He seems to be stating that Xero is unable to calculate the restrictions that would need to be applied to these Input VAT reclaims.

You've hit the nail on the head. I wrote to their support team and they have came back and advised it's not possible.
VAT on sales it does just fine, it's the input aspect.
Do you know of any packages aside sage which could possibly be worth exploring?

Thanks again!

[Eric Mc]

Can you not get reports that enable you to manually calculate the relevant Input VAT restriction - and then adjust the Xero figures so the return can be submitted?

Or is Xero likely to throw a wobbly (technical term) if you did something like that?

Do the Partially Exempt De Minimus rules have any relevance to your situation?