VAT

As a tax collected by businesses on the sale of most goods and services, VAT puts the business owner into the position of their nemesis, the ‘Collector of Taxes’. The up side of this is that a high VAT liability can be an indicator of a good sales period!

Our advice around VAT can ensure that a business is registered (or deregistered!) at the right time, onto the most appropriate scheme. We can support your bookkeeper with the preparation of the Returns in good time, until they become confident and comfortable with the process, or we can prepare and submit your Returns on your behalf from the information they supply.

VAT regulations are complex, and with cross-trained HMRC inspectors able to visit to inspect your records with 24 hours’ notice, it’s important to be confident that your records are entirely accurate. Should you be selected for such a visit, please bear in mind that all of our clients are automatically enrolled into our Fee Protection Scheme, which allows us to be present for any such visit without any charge to you for our time; this usually avoids any further issues.

Under the incoming ‘Making tax Digital’ (MTD) scheme, it will be VAT registered businesses that are affected first; we will ensure that our clients are kept up to date as more details emerge in order that they have time to implement that may become necessary as a result. We see it as part of our responsibility to our clients to keep them up to date on the developing legislation, and safe from penalties for non-compliance.

MTD will be a significant change in the process of VAT submissions so it is essential that businesses are aware of the implications of these changes, but also that they take any opportunities that this change of process may bring.

Given that there is also speculation that the VAT registration threshold will reduce before MTD is imposed, the number of affected businesses could be considerably higher than first thought.

If you’re unsure if you’re on the best VAT scheme for your business, or a worried about the imposition of MTD, get in touch now to chat it through with us; we’re here to help!

Read our related Blog posts:

HMRC are finally writing to MTD businesses – After months of letting us do the work on their behalf, HMRC are finally writing out to warn 200,000 businesses that will be affected by Making Tax Digital (MTD).

HMRC extends Making Tax Digital (MTD) Pilot Scheme – HMRC has extended the Making Tax Digital (MTD) for VAT pilot scheme to sole traders and companies, allowing more than half a million businesses to test out digital tax reporting for VAT.

We’re Making Tax Digital ready too! – We posted recently about the software that is now ready and approved for use after the implementation of HMRC’s Making Tax Digital. The good news is that we’re now officially ready too, having completed Xero’s Making Tax Digital Learning Journey, and received their endorsement.

Making Tax Digital Software – Making Tax Digital is HMRC’s new methodology for the submission of VAT Returns from April 2019. Xero, Quickbooks, FreeAgent and Sage all appear on the ‘ready to go’ Making Tax Digital Software list.

Making Tax Digital – the Story so far – HMRC’s new ‘Making Tax Digital‘ regime comes into effect in April 2019. It will impact all businesses, but will hit VAT registered businesses currently using spreadsheets and manual records the hardest. Whilst April 2019 will soon be here, there’s no need for these businesses to panic – yet!

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