Value Added Tax (VAT)

Understanding the organization’s end-to-end VAT processes and controls is a prerequisite for implementing effective VAT controls.

VAT evasion is prohibited; however, VAT avoidance is legal but disliked by HMRC, which will use all its powers to prevent avoidance, including conducting investigations to ascertain the loss caused by such acts, if any.

HMRC’s position is that a taxpayer is free to structure his affairs as he sees suitable, except if saving VAT is the single or primary purpose. In short, as long as a transaction has a true commercial motivation, it is acceptable, as are the tax repercussions that result from it.

We provide a VAT review service to help assure compliance and reduce the risk of fines.

A VAT review takes into account all aspects of a business in order to establish the VAT obligation of supply and the necessity for any restrictions on recovery for VAT incurred. This will require us to comprehend the tasks performed and will take several days on site.

In terms of reducing fines in the future on errors from HMRC, having a VAT review demonstrates that a business is exercising ‘reasonable care’ in relation to VAT compliance, which may result in penalty mitigation.

What we do

We take pride in the fact that our clients pay only the least amount of tax required without breaking any rules or jeopardising their relationship with HMRC. We are not in the business of advertising avoidance techniques, and to yet, no of our VAT clients has been called to go to court over an approach we advocated. Our clients, on the other hand, should not pay more tax than their competitors, and we are delighted when they pay less.

Our VAT compliance, advice and planning services include the following:

VAT grouping or stand-alone registrations.
Voluntary VAT registration where taxable turnover is below the threshold.
Using different VAT schemes.
Advice on opting to tax land or property.
Implications of VAT that might arise from your prospective business plans to ensure that VAT does not compromise these arrangements.
Advice on the acquisition or sale of a business or a property.
Pro-active on VAT rules changes affecting your business.
HMRC investigations and negotiations with HMRC on your behalf.

What is Value Added Tax?

Value Added Tax UK (VAT) is an indirect tax which affects most businesses irrespective of the size or nature of the organisation. VAT can be very complex. HMRC is taking an increasingly stringent approach toward VAT compliance.

The standard rate of VAT is 20% but there are goods and services which are charged at zero and reduced rate.

Demonstrating robust processes and controls to show “reasonable care” is becoming more and more essential. We can complete and submit VAT returns and declarations on your behalf. Alternatively, we can do a pre-submission review of your own (or your current account’s work) to give additional peace of mind. Either way, getting it wrong can be a costly mistake. Getting help is a worthwhile option.

Do you sell goods and services to other businesses in the wider European Union (EU)? The rules on VAT have changed since Brexit has happened. These rules are different if you despatch good in post or through courier. All good sold to EU are export and are Zero rated being export.

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