Although designed to be a simple tax, VAT can actually be quite complex, with the handbook for VAT legislation running to thousands of pages.
All businesses in the UK which provide taxable goods and services and have a taxable turnover of £85,000 must register to pay VAT; those with a lower turnover that wish to reclaim the VAT they pay on products they use in their business or production are also able to voluntarily register for VAT.
Transactions need to be correctly treated for VAT, not only to ensure compliance, but also to correctly manage a significant element of turnover (up to 20% in the UK, but higher elsewhere).
VAT planning requires in-depth knowledge and should be considered at all levels of your business, whether a start-up or during a period of growth. If you’re embarking on a new business activity, in a period of acquisitions or disposals, or expanding into new geographical markets, VAT should be correctly and robustly planned to optimise cash flow while ensuring compliance.
Our expertise covers all elements of VAT, including ensuring the correct treatment of activities, compliance, defending against HMRC challenges, managing inspections and fulfilling reporting requirements.
There is considerable scope for error across the VAT regime, and to be handled effectively it must be managed on an ongoing basis.
To find out how PRIMOtax can reduce the VAT burden on your business, give us a call or book an initial 15-minute consultation.