Ten Recommendations on Managing Your VAT LiabilityPosted by Thomas Shaw on May 11th, 2018 Paying a Value Added Tax (VAT) liability is usually a large burden for tiny companies. This article is aimed at owners of compact enterprises inside the UK and focuses upon how their VAT burden can be successfully managed. Get far more details about compliant invoices Ten guidelines on managing your VAT liability: If you don't need to compulsory register for VAT, calculate if it could be worthwhile to de-register for VAT. Be sure that that you are calculating your VAT liability correctly. Many business spend VAT on products they shouldn't and never reclaim all the VAT that they are entitled to. Preserve as much as date with VAT legislation changes that effect your business. It might be worth taking into consideration retaining an accountant to maintain an eye on this for you personally. File all VAT returns on time and make sure that VAT payments are made prior to deadlines. There are actually financial penalties for not meeting VAT deadlines. In case you are experiencing cash flow difficulties and may not make your VAT payment on time, then contact HMRC to negotiate payment terms. Calculate if applying the flat rate VAT scheme would save you funds. This is for enterprises with a turnover below £150,000. It saves administration and may be financially effective. Would you advantage from employing the annual accounting approach. If your turnover is beneath £1,350,000 under this scheme you make only 1 VAT return per year. Need to you be using a retail scheme. These schemes are for retailers and they are an option if it is not sensible to situation invoices for any huge variety of supplies direct to the public. This short article is definitely an introduction to specific aspects of VAT legislation only and it is actually not intended to become extensive. Like it? Share it!More by this author |