VAT

VAT seems easy till it all goes wrong. Are you sure you know the difference between standard rated, zero rated and exempt supplies? Are you claiming input tax correctly? Should you be VAT registered in another country? Do you know if you are eligible for a special VAT accounting scheme? Do you keep up-to-date with changes in legislation and its interpretation by the courts? Might you be subject to a claw-back of VAT on sale of the business premises?

Mistakes can be costly. VAT penalties and surcharges are draconian. It is imperative that VAT returns should be prepared correctly and VAT payments made timeously. It is equally imperative to plan in advance for transactions where VAT, surcharges or penalties might be mitigated.

Our VAT service offering includes:

• Exceptional transactions: Capital expenditure, acquisitions, disposals, new ventures and new products.
  
• Significant VAT costs can be incurred by businesses when businesses acquire, say, an asset or another business or dispose of a business or start up a new venture. Planning in advance can avoid the many pit falls and ensure VAT is not an irrecoverable cost. In addition, we can review documentation and input into drafting of contracts.
  
• Negotiating with H M Customs & Excise over, for example, penalties, VAT assessments and the VAT liability of supplies.
  Import and export issues including intrastat and sales listings.
  
• Assistance and advice with VAT registrations/de-registrations.
  
• Assistance and attendance when HMRC visit to inspect a business’ records.
  
• Special VAT scheme identification and review.
  
• Where appropriate special scheme identification and/or review such as retail schemes, cash accounting, and annual accounting and flat rate schemes.

VAT Management Service

A number of our clients have recognised the benefits of managing their VAT affairs on an ongoing basis and have opted for our all embracing rolling VAT management service. The service also includes monthly meetings to up date you on VAT matters and progress on programmed projects and a free ad hoc VAT help line for one-off queries. The fully managed service also incorporates the following:

• Cost reductions reviews. Ensuring VAT relief for example with regard to construction work (both capitalized and revenue costs); fuel and power supplies; temporary staff costs; printing and stationery; marketing arrangements.
  
• Input tax recording and recovery arrangements including importation arrangement reviews. The aim is to ensure that the input tax recording and recovery arrangements are adhered to in light of new stricter input tax recovery rules. Reviews will also include, for example, in-house catering arrangements and maximising VAT accruals.
  
• VAT treatment of supplies including timing reviews. The aim is to ensure the correct VAT treatment is applied to transactions including reviewing export evidence and checking output VAT is only accounted for in the correct VAT period. Review bad debt relief arrangements.
  
• Staff VAT training courses tailored to your business’ needs and requirements.

To find out how we can be of service to you, please contact your nearest office or complete the enquiry form below.

Taxation Links

• Corporate Tax
• Taxation Compliance and Advice
• Trusts
• VAT
• Tax Team
• International Tax Planning

• Tax Rates 2008/2009
• VAT Advantage - a process to help you keep on top of VAT
• Tax & Financial Strategies Guide 07/08
• Cross border movement of goods.  VAT nightmare!