VAT investigations are on the rise. According to reports, HMRC raised an extra 32% in tax as a result of VAT investigations last year, much of this stemming from small and medium sized businesses.
The VAT regime is a complex one, with multiple rules and regulations that you must be aware of in order to avoid penalties. VAT assurance visits are common and most registered businesses will receive a visit from an HMRC officer at some point.
Would your VAT records stand up to scrutiny? If you are late submitting your VAT returns or paying your bill you may be at higher risk of investigation. Pointers to ensure you aren’t caught out include:
• Notifying HMRC when major changes take place within the business
• Keeping records for six years
• Keeping hold of VAT invoices – these are your authority to claim back VAT supplies made to you
• Recording all output and input tax accurately
• Making sure that non deductible input tax such as that on motor cars and business entertaining is not reclaimed.
We can help you to avoid unnecessary cost and inconvenience by:
1. checking your VAT summaries and returns
2. reviewing your operations
3. reconciling your accounts
4. simplifying your procedures.
We can also help to ensure that you aren’t paying too much VAT. There are several schemes available that could help to streamline your VAT returns. We can help you to choose the best scheme for your business and circumstances.
Whether you are newly registered for VAT or have been filing returns for years, we will be able to help you protect against penalties.
Please contact us to find out more about the VAT services we offer, starting with a VAT health check.