Yesterday, Chancellor Jeremy Hunt presented his second Autumn Statement, but with a very different tone to the gloomy announcements made this time last year. The Chancellor announced initiatives with a massive focus on pushing growth in the economy. The main question you’ll all no doubt have is… “how does it affect me?”, let’s take a look…
Do you need a VAT health check?
23 February 2023
Luke Anderson
Building & Construction, Accounting & Compliance
VAT is not a simple topic and it is something that can very easily go wrong! Getting the VAT treatment wrong on your sales or purchases always leaves a risk that HMRC may investigate a return and make you repay any errors plus possibly interest and penalties.
Have you ever considered whether you are declaring the correct VAT on your sales? Are you reclaiming the correct VAT on purchases and not leaving any VAT on the table that you could reclaim?
Common errors made on sales invoices
- Issues with the Domestic Reverse Charge
- Services to Non UK companies
- Exports
- Exempt supplies
- Dealing with the Flat Rate VAT Scheme correctly
- Dealing with the Second Hand Margin Scheme correctly
- Getting the correct rate on property supplies
Common errors made on purchase invoices
- Vehicles and associated costs
- Treatment of hire purchase agreements and leases
- Insurance costs
- Client entertainment
- Domestic Reverse Charge
- Imports
- Partial Exemption
The above are examples of the issues that we come across day to day whilst preparing year end accounts and tax returns and doesn’t scratch the surface of the various VAT rules that exist.
Having a one off in depth review of the business from a VAT perspective can help to eliminate these errors as we would be able to consider each revenue stream and advise on the correct VAT treatment ongoing.
Similarly we also offer a quarterly VAT review service that would let us take a look at each VAT return and highlight any areas where we believe that there may be additional VAT recoverable or where the current treatment is incorrect.
If this is something that you would be interested please feel free to contact Luke Anderson on 01634 731 390.
Our services
If you would like to find out more about some of our services that might help you please take a look at our related pages:
Take a look at our other blogs related to VAT
Exporting goods? Make sure you account for VAT correctly and keep your customers happy!
The content in this blog is correct as at 14th February 2023 See terms and conditions.
