VAT planning for Business Start Ups

There are many opportunities for businesses first becoming VAT registered to save significant amounts of money. There are also many penalties lying in wait for those that get it wrong.  VAT can be tricky at the best of times, so let us help you get it right from the start so that you save money and avoid penalties.

Here are some of the more common issues to be considered.

Registration

Keep a weather eye on your annual turnover and make sure that you register for VAT as soon as you should. You will avoid penalties, interest and VAT that you may be unable to recover from your customers. You can always call, we will be happy to clarify the registration rules as they apply to your case. We can also assist with the registration process and have particular expertise in dealing with late registrations.

Compliance

We can train you and guide you through basic compliance issues such as tax points, invoicing, bad debt claims etc.

VAT Schemes

HMRC operate a number of special schemes to assist small businesses. These include the cash accounting scheme, the annual accounting scheme and various flat rate schemes. We can advise on the suitability of these schemes.

Pre Registration Expenses

You can recover VAT on invoices that you have paid or received before you register for VAT by including the input VAT on your first return. We know what VAT is recoverable, and we may be able to help with adjusting the date of VAT registration to maximise VAT recovery.  Using Covertax could save you considerable amounts of VAT incurred before the date of registration, and maximise VAT recovery thereafter.

Entertaining Expenses

Entertaining customers in the UK is no longer a tax deductible expense, but if you are registered for VAT there are circumstances when you are allowed to claim back the input tax on your share of the bill.

Employee Expenses

Recovery of VAT on employee expenses is frequently missed.  We can assist you to maximise VAT recovery, within a properly structured employee expenses policy, and even advise and assist with appropriate expenses dispensation applications before HMRC to manage the direct tax side as well.

Contact us on 0845 643 5450 to discuss your particular situation.