While VAT might be simple in principle, it can be difficult when you put it into practice. This means people need to take care. Luckily we are one of the best teams dealing with VAT returns London businesses can deal with. When you work with us, we do it on time and accurately.
Poor Record Keeping
First things first, you cannot hope to prepare your VAT returns if you do not have accurate records. This will include your sales and purchase invoices. You need to hold onto a valid invoice if you want to reclaim VAT.
It is common to see businesses that have entered in the wrong figures. A big problem is putting net instead of gross. It is crucial that you take care and double check everything.
Wrong Rates Or None
Sales have a standard VAT rate of 20%. But, you need to be aware of the goods which are zero-rate such as newspapers. There are also goods which are exempt like insurance. In some cases there is no VAT, including if you are selling to customers abroad under certain conditions.
The opposite of this is when a business does not include VAT even though they should. This could be selling a business asset or recharging expenses.
Claiming VAT Back Twice
You might think that this is obvious but it still happens a lot. Businesses will reclaim tax twice on the same expense. It typically happens when people include the invoice and the supplier request for payment or statement.
Going It Alone
VAT is a difficult area where there are quirks and complexities that can lead to businesses making mistakes. This can be very costly in terms of fines from HMRC. A simpler way is to consult professional accountants who have the right skills and a vast knowledge.
At Brian G Lonis & Co, you will find the people you can trust for comprehensive help with the VAT returns London has to fill out. We will take on this for you so that you can enjoy the benefits and take care of the aspects of your business that you want to.
Reach out to us using 02088 022 772 or the contact form on our site. We will then be able to discuss in detail the precise details of our work and how we can help with your needs.