COMMON VAT PROBLEMS

VAT is a highly complex but important topic.
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We know the key issues to be aware of.

COMMON VAT PROBLEMS

VAT IS A COMPLEx topic

Many business owners struggle with various questions about VAT. It is a highly complex but important topic. Once you’ve made an error on a return, your business is far more likely to be inspected in the future. That makes it crucial to file the correct forms on time and with utmost accuracy. We believe that recognising the areas of VAT that have been most troubling to other businesses is a good way to avoid them yourself. Below are some key issues to be aware of.

Vat applied to personal supplies

There are special rules for personal or employee supplies, including things like company business entertainment, cars and fuel. To avoid problems with the HMRC, these expenses should be categorised and listed correctly.

Missing details

Searching for details at the last minute can lead to late VAT returns and result in fines and more frequent VAT inspections. Make sure you collect all the details you need and record them right away. Good record keeping is essential.

Accuracy of dates

You’ll need to know the ‘date of supply’ for each invoice, which isn’t always the date of sale. Changing over to HMRC’s Cash Accounting Scheme could make record keeping much easier.

Out of date records

Avoid high accountancy fees by keeping accurate and organised records making it quicker and easier to submit your VAT returns. Be sure to check the dates to see whether they fall in the current tax period.

International traders

Different VAT rules apply for those businesses who are trading outside the EU. These rules can be very complex and lead to much confusion. If you have doubts, questions or issues, then please call us for free information.

Reclaiming vat

If the goods or services you supply are exempt from VAT, you can usually reclaim the VAT you pay on purchases related to them. The proper forms must be filled out.

Incomplete vat invoices

Issuing the proper VAT invoices to your customers is essential. You must keep VAT invoices for all your purchases. We offer VAT training that can help your employees understand what needs to be done on a daily basis and how to comply with VAT rules.

How to avoid common vat mistakes

VAT is very complex and many business owners struggle to understand their duty to comply with certain regulations. Of course, VAT forms and returns should be accurate and filed on time to avoid penalties. In order to simplify your VAT filings and reduce the risk of inspection, there are certain steps you can take.

Below are various tips to help you: