VAT

VAT Planning can help you to maintain compliance and identify potential savings.

VAT can be quite complex and it is important that you have an accountant to manage this for you and help you understand what you owe and when this will need to be paid. It is possible to legitimately delay payments and this may be necessary if you have cashflow problems.  This can be done by understanding tax points correctly and by paying the right tax at the right time.  You don’t want to incur penalties for late payment of VAT. VAT is time sensitive, so the sooner you talk to us the sooner we can help.

VAT Returns

VAT returns need to be made quarterly.  We can help you to complete and file your return on time and stay on top of your payments. The rules and regulations surrounding VAT returns can be quite complicated, however we can do your VAT return quickly especially if you use digital accounting.

The main things you need to be aware of are:

  • There are different rates of VAT for different products and services, including standard (20%), reduced (5%) and zero rate (0%).  For example, printing flyers for your business is VAT free unless you have a gap for people to fill their information in which case you need to charge 20%.
  • You can’t always reclaim VAT on purchases, for example for client entertaining, car purchase, or non-business use
  • There are severe penalties for errors, including penalties of 15% for undeclared errors

Your business could benefit from the flat rate scheme.  Under this scheme, you pay a fixed rate of VAT (16.5%) and keep the difference on what you charge rather than claiming back VAT you have paid. This is only available to small businesses who have a very low base, such as IT contractors.  We can discuss this with you.

VAT Disputes

Disputes over VAT can and do occur.  They most commonly occur:

  • As the result of a routine VAT inspection
  • When a taxpayer seeks a ruling on a doubtful area
  • When HMRC have made a change to existing legislation and/or policy where the effect on a particular taxpayer’s situation is unclear

These disputes usually centre on:

  • The VAT liability of a product or service
  • The amount of VAT a taxpayer is entitled to reclaim on their costs
  • Whether or not a product or service is supplied in the UK

We can help you to deal with these disputes and produce you with guidance on your options. We always strive to maintain good relationships between you and the VAT man which ensures that inspections go smoothly and minimises the risk of VAT disputes.

VAT Health Check

If you are concerned about a VAT inspection then our VAT health check is right for you.  This has been designed to find any VAT issues before the VAT man does.

Our health check:

  • Reviews and sample checks your accounting records for errors
  • Sample tests the most common errors that VAT inspectors look for
  • Analyses your completed VAT returns
  • Checks the completion of VAT returns
  • Compares your VAT returns against your annual accounts
  • Checks the VAT treatment of your sales
  • Considers whether you are making best use of relevant VAT schemes
  • Ensures you are correctly applying the rules of VAT schemes
  • Identifies VAT planning opportunities

We can help you to deal with these disputes and produce you with guidance on your options. We always strive to maintain good relationships between you and the VAT man which ensures that inspections go smoothly and minimises the risk of VAT disputes.