The VAT Consultancy is now 20 years old. In this time we have worked with many of you successfully helping you with the complex task of VAT. From a quick call on our VAT helpline to confirm a piece of legislation, through to full VAT healthchecks as part of an audit, we’ve been another member of your team, all working together to provide the best value service to your clients.

Now we’d like to go that bit further by providing you with expert VAT advice online. As well as an update on the latest VAT news we’ll delve further into the technical detail giving you greater knowledge for you to add-value to your clients.

Join us for this FREE online seminar on Tuesday 26th July, 12.00 Midday, to find out the latest on:

- Key legislative changes

- Current HMRC VAT Campaign

- New reclaim opportunities arising from recent Tribunal decisions

Listen live and as part of the 45 minute online seminar, you will have the opportunity to take part in a 15-minute Q&A hosted by John Crawford, Managing Director and Steve McIntyre, Director of The VAT Consultancy. Please let us have any “burning issues” in advance and we’ll discuss them as well.

And, if you like what you hear why not sign up for a year’s subscription of quarterly online seminars at the special price of £200 (plus VAT) per annum, per practice, giving you the opportunity to have the issues you want discussed and peace of mind that you’ll stay ahead in the VAT world all year round!

Click Here to register for this FREE online event.

In our recent client survey you told us that one of the biggest VAT challenges you and your clients face is managing your everyday VAT accounting. Karen Mulcahy, Consultant,  takes a look at this challenge in more detail and gives her top ten tips for successful management of basic VAT accounting.

In today’s tough economic climate it’s logical for any business to concentrate on trying to stay afloat: finding new customers, keeping existing ones happy, and maintaining revenues. So it’s not surprising that with so much to think about, it’s easy to loose sight of your basic everyday VAT requirements – submitting accurate returns on time and on-line, not overclaiming or underclaiming VAT, registering for VAT at the right time and keeping up with the ever changing rules, are just some of the issues we see businesses struggling to manage on a daily basis. And, with HMRC not allowing much room for error you could find yourselves in deep water.

Here are my top tips for paddling your way to calmer waters:

1.  Make sure that your VAT returns, and any payments due, are made by the due date.  This should include providing effective cover for holiday absences.  Take advantage of extensions to the deadline by paying by electronic transfer.  The penalty provisions are harsh.

2. Have you provided any training for the people you rely on to prepare the VAT return?  VAT law and guidance can change over time and some thresholds change each year.

3. Is the VAT accounting policy of the business still valid?  There are various different schemes available for VAT accounting, each with its own set of rules and qualifying conditions; e.g. the relevant percentage rates for the Flat Rate Scheme have changed several times in the last 18 months.

4. When did you last have a VAT inspection? The frequency of VAT inspections has diminished over the years and businesses have less opportunity to ‘check things out’ with a VAT officer.  Consider having a VAT review to test your systems, accounting treatment and liabilities.

5. Review the treatment of supplies.  Many businesses have diversified over the last few years to combat the negative economic factors.  It is often worth checking that the VAT treatments applied are correct; errors can be costly.

6. Are you thinking about doing something different?  Make sure you understand the impact on your business.  Large and extraordinary transactions can have a significant impact on a business, especially where property is concerned.  Will you be able to recover the VAT charged?  If you are buying part of a business can it be treated as a VAT free Transfer of a Going Concern?

7. Make sure you retain evidence of export to zero rate a supply of goods leaving the UK.  In the absence of effective or sufficient evidence you could find yourself with a bill for the VAT, and no recourse to your customer.

8. Review your partial exemption method.  Many businesses make both taxable and exempt supplies, which can often restrict the amount of VAT recoverable on costs.  As businesses change over time, the current partial exemption method may no longer provide a fair and reasonable result.

9. Have you overpaid VAT?  Whether you have overpaid or underpaid VAT, adjustments can be made for the last 4 years.  Many businesses have benefited from repayments of VAT where errors have been made, but there is limited scope to make a claim.   It may also be possible to mitigate the impact of penalties.

10. If in doubt, ask!  Contrary to the announcements preceding its introduction, VAT is not a simple tax – and certainly isn’t black and white.  The VAT Consultancy can provide a wealth of different services from helpline services to full VAT reviews and assistance with bespoke projects.Get in touch: karen.mulcahy@thevatconsultancy.com or call on 01962 735350.