When it comes to calculating, reporting and paying Value Added Tax (VAT), mistakes come at a price for business owners.
Engaging the support of a qualified accountant or bookkeeper, to take care of your VAT affairs, can ensure you stay on the right side of HM Revenue & Customs, and that errors are avoided.
Not only will we make certain that all calculations are correct but, with our support, your VAT returns will be submitted on time and in line with the latest VAT regulations, including Making Tax Digital (MTD).
Good record-keeping is key to preventing expensive oversights and unnecessary financial penalties, and this is often one of the first things we review when we start working with a business.
To give you an indication of which aspects of your VAT you should really be keeping a close eye on, some of the most common VAT errors include:
- Erroneous entertainment claims – you can claim back VAT on entertaining employees, but not normally for clients.
- Split usage – where you provide items such as cars or phones, you can only claim VAT back on the business use element.
- Inaccuracies in the data – entering the wrong figures on a VAT return may leave you liable to an investigation by HMRC or result in you paying too much or too little tax.
- Late filing – ensuring that you file the necessary VAT information, on time, each quarter is essential to prevent the accumulation of penalty points, which can lead to a fine.
- Failure to register – if you reach a taxable turnover of £85,000 or more in any tax year, you will need to register for VAT.
If these are things that concern you, you can take action to improve your VAT reporting:
- Take time to update – keep on top of VAT by setting aside a regular time each week – or each day – to update your accounting records.
- Maintain accurate records – it is important that you retain invoices and receipts so that you can accurately report VAT. This is easily achievable with the latest cloud accounting software and apps.
- Speak to a bookkeeper, or accountant – an experienced bookkeeper can help you to implement good record-keeping habits, that are sustainable, whilst ensuring that your VAT returns are prepared accurately, and submitted promptly.
VAT support and advice for your business
We pride ourselves on being able to deliver a service that tackles compliance and advisory in equal measure.
If you want one less thing to worry about, contact us to see how we could help you take care of your VAT returns, efficiently and compliantly, and in doing so ensure that you are always meeting your obligations.