🧾 VAT return changes

Single VAT return per period

To help prepare for upcoming improvements to our VAT returns, we now allow you to prepare one VAT return per VAT period. Any VAT obligations that have been linked to a VAT return will no longer be available in the obligation period drop-down list.

VAT return transaction importing

When you import your transactions and calculate your VAT return, we now store which reconciled transactions have been applied to that VAT return. This also means that your reconciled transaction will now show which VAT return it's been included on.

We have also updated how we handle the VAT return calculations, these are now driven by the value in the VAT code box on a transaction. We will no longer use the categories for the VAT return calculations.

We have expanded the options you can select for the VAT tax code:

• No specific code (Standard 20%, Reduced rate 5%, Zero rated 0%)
• EU Goods
• EU Services
• Exempt from VAT
• Out of scope for VAT
• Imports (Postponed VAT)
• Reverse charge

✨ New transaction categories

We've introduced additional categories to help make organising your transactions easier and to help us prepare for the release of ITSA tax returns. You can now also choose:

• Rent Received
• Director's loan
• Charity (including Gift Aid)
• Withdrawals

We have also removed the General and Finances categories from selection. Any transactions that currently use these categories should be updated to use one of the available categories.

🔄 Switching companies 

For those who manage multiple companies, we've introduced an updated interface for switching accounts. You can now search through your managed companies to better find the companies you wish to use.

⤵️ Invoicing improvements

We've now introduced a new configurable option, VAT basis, within your VAT settings that will allow you to specify when an invoice is included on your VAT return. 

• Accrual, we will create a transaction at the point you mark your invoice as final. You can not make any further changes at this point.
• Cash, we will create a transaction when you mark the invoice as paid.

⏩ Full list of changes:

[Added] We've introduced some additional transaction categories.

[Removed] We've removed the General and Finances transaction categories.

[Added] Added a new VAT basis setting to configure when an invoice is included on your VAT return.

[Added] We now show the VAT registration number on any VAT return exports.

[Added] We've added some additional tax codes to the transactions to allow us to calculate the VAT return more effectively.

[Improved] We have improved the messaging when a Government Gateway account has been linked successfully.

[Updated] We no longer use the transactions category to calculate the VAT return values.

[Fixed] Fixed an issue where in some cases a transaction value would not be correctly rounded when entering it for the first time.

[Fixed] Fixed an issue where importing new transactions from a file would give incorrect payment dates when the date was in an incorrect format.

[Updated] We've updated the interface for switching companies to make it easier to search.

[Updated] You can now only create one VAT return per obligation period.

[Added] We now track which transactions are imported to a VAT return calculation, these are also shown on the VAT return.

[Added] We now show which VAT return a transaction has been included on within the transaction itself.

[Improved] We've made improvements across the platform to help improve security and performance.