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Specialist Service

VAT

VAT is a complex tax and rates can depend on the product or service being sold or claimed.  As a result many businesses struggle to navigate its latest rules.

Our VAT specialists help you remain current with your VAT obligations and ensure you don’t pay more tax than you need to.

We have many years’ experience helping businesses meet their VAT obligations. Here are some examples but do get in touch with one of the team if you have a specific question.

VAT registration

Registration is a key component of the UK VAT system and is an area of compliance that our experienced team deals with on a regular basis.

Anyone conducting a business activity should consider whether or not to register for VAT. The three main reasons for registering are if:

VAT registration is a formal and strictly controlled process in the UK and is much less straightforward than it appears. There is also an expensive and fairly inflexible penalty regime for failing to register at the right time.

So, although registration ought to be a simple exercise, it can prove to be time-consuming and costly.

Our team has helped hundreds of businesses to register for VAT, and we can provide as little or as much help as you need.

VAT simplification schemes

Once a business is registered for VAT it has a number of obligations, such as filing VAT returns and keeping records.

We can help make this easier by advising on simplification schemes such as:

Our team can guide you through the maze of schemes and eligibility criteria to match you with the right scheme(s) to suit your circumstances.

Other VAT schemes

There are a number of other VAT schemes that may affect your business. The scope of these schemes may be wider than their names suggest. Furthermore, some are mandatory, while others are highly desirable to reduce the overall VAT payable. Expert advice is therefore essential.

The main schemes are:

For the most part, VAT is a business matter and of little interest to individuals other than those who are self-employed, but not exclusively so. For example, some people can benefit from reliefs such as the DIY builder scheme or VAT reductions for the disabled.

Features common to all these schemes are complex rules, inflexible penalty regimes and strict record-keeping requirements. Our VAT team can advise on all aspects of these schemes and help guide you through the complexities.

Compliance and penalties

Complying with the VAT regime is not easy and it bristles with penalty provisions designed to encourage ‘good behaviour’. Once a business is caught up in the penalty regime, things can quickly spiral out of control.

Whatever your situation, we can help you avoid:

In addition, HM Revenue & Customs (HMRC) will levy interest if you owe money, but is rarely required to pay interest if money is owed to you.

High quality advice and assistance is essential to avoid getting caught by penalties or to improve compliance in order to get out of the penalty regime. Our wide VAT knowledge and experience of dealing with accounting systems and negotiating with the VAT man can be invaluable.

Making Tax Digital for VAT

Making Tax Digital (MTD) is a long-held Government ambition to create an online tax filing and payment system. It also hopes to stimulate a migration to digital record keeping. Long-term, it’s intended all business taxes will be part of MTD.

The Making Tax Digital Programme launched in April 2019 with its first scheme – Making Tax Digital for VAT.  To aid a smooth adoption, the Government introduced a gradual phasing in of eligible businesses. Compliance with Making Tax Digital for VAT requires a business to keep digital records and use MTD-compliant software to file their VAT returns. Currently all VAT registered business with a taxable turnover above £85,000, must follow the rules for Making Tax Digital for VAT unless:

From 1 April 2022 all VAT registered businesses must follow its rules regardless of turnover. Our specialist VAT team have helped many businesses migrate to digital record keeping and comply with Making Tax Digital for VAT. We can also advise you if you qualify for any exemptions.

Trading or importing from Europe and other parts of the world

Following Brexit on 1 January 2021, UK businesses who trade overseas or ship products in from overseas face more complex VAT-related regulations. We are able to advise on the regulations your business needs to comply with in relation to the territories, products and services involved in your operations.  We also help businesses with the establishment of subsidiaries in the EU and other locations, and in appointing a fiscal representative, to ensure they meet their VAT obligations in different territories.

Planning

There are a number of opportunities to arrange your affairs so as to minimise the amount of VAT payable or maximise the amount of VAT recoverable. These can be as simple as making use of the continuous supply rules to defer the date when VAT becomes due, or can be complex arrangements designed to achieve an absolute VAT saving.

Our VAT team includes a former HMRC anti-avoidance adviser, so is well placed to help guide you through the minefield that VAT planning activity has become in recent years.

VAT audits and health checks

Our experienced VAT team can help to streamline and review your VAT records to:

Training and publications

If you simply want to learn more about VAT as it applies to your business, we can provide tailored training as well as copies of useful VAT publications.

We also keep you abreast of the latest developments via updates on our website and a regular column in our Shipshape magazines

Can we help?

For many years, our specialist VAT team has provided support to clients across a wide range of business sectors. The team advises on everything from the basics of compliance, through to complex VAT planning.

We can also help answer your queries relating to excise, inland customs, import, export and intra-EU dispatch, and arrival procedures and formalities.

For further information, please talk to your usual Shipleys’ contact, or to Nancy Cruickshanks.

Specific advice should be obtained before taking action, or refraining from taking action, on any of the subjects covered above. 

How Can We Help?

Want easier ways to manage your accounts? Got a tricky question about tax? Looking to grow your business? Get in touch and our team of experts will help.