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VAT do's and don'ts

When it comes to VAT, Attwoods can advise businesses on some of the important steps to take – and the pitfalls to avoid. This article considers some important VAT Do’s and Don’ts.

DO keep a monthly record of your turnover if you are not yet registered for VAT - late registration can result in severe penalties
DO notify HMRC when major changes take place - changes must be notified to HMRC within thirty days
DO retain records for the last six years - these could be demanded by law
DO obtain and keep VAT invoices - these are your authority to claim back VAT on supplies made to you
DO charge VAT on supplies made to your staff
DO charge VAT on any equipment or vehicles (except motor cars) that you sell or part-exchange
DO account for VAT on fuel used for private motoring using the appropriate VAT scale charge
DON'T claim the VAT paid on the purchase of a motor car - it is not recoverable except in some very exceptional cases
DON'T claim the VAT paid on goods or services used for private purposes. Where there is an element of private use (e.g. telephone) an appropriate percentage should be claimed. Special arrangements apply to private use of petrol (see above)
DON'T claim the VAT paid on entertaining (except for reasonable, relevant costs of entertaining overseas customers or costs incurred in providing entertainment to employees)
DON'T forget to account for VAT on inter-company charges
DON'T charge VAT on the sale of business assets where the transaction qualifies as the transfer of a business as a going concern (make sure contracts incorporate appropriate VAT provisions)

If you would like to discuss VAT in more detail, please contact the team at Attwoods.

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VAT do's and don'ts

VAT do's and don'ts

Here to help

Contact details

What services are you interested in?

Message

Which location would you like to contact?

Communication

Latest news

Savers added £42 billion into cash ISAs in first half of 2024, data shows

Inflation rate holds steady in August at 2.2%

Billion-pound tax bombshell to hit hospitality, warns trade body

IPSE calls for fairer off-payroll rules in Budget

IoD outlines key policy changes in Budget submission

Reforms to IHT, CGT and NI 'could raise over £20 billion a year'

UK economy unexpectedly flatlines for second month in row

£5.5 billion lost as a result of tax evasion, report finds

Business group urges government to fix 'antiquated' business rates rules

Scam complaints reach highest ever level, data shows

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