
In terms of the nitty-gritty of VAT payments and returns, then here are a few pointers and tips to help you directly or if you’re involved with others in this process:
1. Remember That Most Things Are Processed Online
The internet is dominating accountancy anyway, but particularly so when it comes to communication and submission with authorities like HMRC and your VAT return. Occasionally we deal with paper copies, but most is online nowadays in terms of submission and then dialogue, making things easier once they are correctly set-up.
2. Get The Right Information
So no matter how slick your process is, if you have the wrong information then you’ll have the wrong VAT liability and problems brewing. Therefore make sure all the right income and expenditure information is processed, the correct adjustments are made, and then a final sanity check of everything is made before final submission.
3. Work Out Who’s Boss
So a VAT Agent can be elected to deal with a client’s VAT liability direct with HMRC. Now although that will of course incur a cost, it brings with it peace of mind that they not only resolve but they literally be the point of contact with HMRC for the whole process to happen effortlessly. If this isn’t suitable, then clearly establish what roles people do have, and who is the ultimate boss and point of contact.
4. Don’t Forget Basic Income & Expenditure
So the basics are that simple – what VAT you had to pay on expenditure can be accounted for against VAT you received on income, with any final balance paid to HM Revenue & Customs or if vice versa, they pay you a refund. So look carefully at what are legitimate ones are to include, particularly mixed uses and elements of these that can and should be included.
5. It’s All About Timing
So every quarter or so a new VAT return needs re-submitting, and therefore all procedures and paperwork to follow suit. Deadlines and timescales are critical to the smooth running of any VAT systems once things are nicely in place.
6. Decide of Registration
So even if you’re not obliged to register, it may be in your best interest to. Therefore carefully look at when and how to best register, and then the best overall procedure and strategy to make the most out of VAT systems afterwards.
The Slick VAT System
With VAT, once it’s correctly set up and the right information is utilised it should tick along nicely. However these preliminary aspects are critical, involving the above 6 tips, to make sure your VAT returns run smoothly – either yourself or through appointed accountants