Brian G Lonis & Co works to provide essential financial services for its clients. We’re considered the top company working in VAT returns in Harringay. If this is an area you are struggling with, we can help. We can do this regardless of whether you are a personal or business client. Everything will be tailored to your specific requirements too.
There are many ways in which small businesses can benefit from VAT registration. This includes reclaiming tax on business purchases and enhancing their professional image. However, some firms will make mistakes on their VAT returns, given how complicated the laws are. Such faults can be expensive in terms of triggering a VAT investigation by paying the wrong amount. We will go through some common return issues that appear so that you know what not to do.
Reclaiming VAT on cars and fuel
You are able to reclaim tax on fuel purchased for commercial reasons by employees, partners, and directors on a VAT return. But, it is an error to claim fuel for personal use alongside work fuel. HMRC needs accurate mileage data to back claims up. The exception is if maintaining records is too challenging. You can pay a scale charge as output tax to account for personal travel fuel.
Aged creditors
Another mistake is reclaiming VAT on aged creditors. Bad debt appears when you’ve accounted for the output tax on a supply made and you don’t get payment from the customer after six months. This is a well-established debt relief rule. You are unable to file for bad debt relief until six months following the due date. Let’s say your business has reclaimed input tax on bills gained from suppliers but hasn’t paid after six months. You will need to reimburse the input tax to HMRC.
Reclaiming VAT on entertainment
Many businesses need to entertain existing or new clients for relationship-building strategies. This helps them to develop the business and promote the brand. Considering you are effectively spending money on marketing, reclaiming VAT seems normal. HMRC disagrees though. You are unable to reclaim input tax on any business entertainment. That includes entry to shows or events, accommodation, and food and beverage.
Get expert advice about tax returns in Harringay
At Brian G Lonis & Co, we understand the ins and outs of VAT. We know that compliance with the rules has also become increasingly complex. This is because of demands from HM Revenue & Customs as well as ever changing regulations. To help, we offer an efficient and cost effective service that helps you manage your tax affairs.
As the number one business working in VAT returns Harringay has, we will get you the results you are after. So, contact us today to learn more. We can even give you an idea of the price; we have no frills pricing to give you the best value for money.