A salutary tale for the new business…

Remember to check your turnover every month if you are close to the VAT registration limit... Why? I had a phone call yesterday from a tax adviser. They had a client who had gone over the registration limit, albeit briefly, three years ago. The client decided to take no action as they expected their turnover to fall below the registration limit … [Read more...]

How Theatres can maximise their VAT recovery on production costs

How Theatres can maximise their VAT recovery on production costs Sorry, this is a little bit technical and is aimed fairly and squarely at those that run theatres. The intention is to help you overcome the apparent blindness of HMRC to the link that exists between production costs and income generated by the theatre from the sales of programmes, … [Read more...]

How to make the best of the VAT regulations to maximise cash flow

Bought ledger If you aren't using Cash Accounting, you can gain a cash flow advantage by claiming VAT on invoices you have received that are dated in the VAT period of the VAT return you are submitting. Of course, this doesn't include invoices on which you've already claimed the VAT. Cash Accounting This provides a benefit for you if your annual … [Read more...]

How to account for VAT on deposits

I've been asked by a client how they should account for VAT on deposits they take. When a deposit is received for a future supply of goods or services, you have to account for VAT at the appropriate rate, i.e. 0%, 5% or 15%. It might be your standard practice to take a deposit to cover the cost of obtaining materials needed to carry out the … [Read more...]

How to avoid errors when applying for VAT registration

At a recent meeting HMRC told the attendees that there were four common omissions that lead to applications for VAT registration to be delayed. Before I tell you about these omissions, so you know what to make sure you get right, let me just mention something else that HMRC told the meeting. Apparently, some applications for VAT registration are … [Read more...]

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