HMRC is tasked with ensuring businesses are compliant, so it is important to pay close attention to this area to avoid any unnecessary assessments for VAT, interest and penalties. Businesses need to correctly identify the liability of supplies, the time and place where supplies are deemed to take place and the amount of VAT due. In addition, input VAT can be subject to many restrictions which can complicate the compliance process. Our VAT specialists will provide you with clear guidance to ensure you report and submit accurate information to HMRC, effectively managing any VAT risks.
VAT registration
Submission of VAT returns
Making Tax Digital
VAT registration
Our Indirect Tax team will analyse your business activities to determine if you have an obligation to register for VAT and account for VAT on your supplies. This includes the value of services you have purchased from overseas, which are subject to the reverse charge. Registration is not always compulsory, and we will inform you about any benefits for your business in registering voluntarily for VAT and help you choose the best time to do so.
If you are concerned that your business may be late in notifying HMRC of its requirement to register for VAT, we will assist you in rectifying this and help you mitigate any penalties.
Should your business undertake overseas transactions, our team will advise on the appropriate VAT treatment. With access to PKF expertise around the world, we will provide you with local VAT/GST advice and support in the relevant jurisdictions to ensure compliance with overseas registration or other tax obligations.
Submission of VAT returns
Your VAT returns need to be prepared accurately and submitted to HMRC on time. Our service will enable you to meet your obligations cost effectively, leaving you to get on with your business. Our thorough service includes reviewing your VAT records to ensure these are compliant and advising on any necessary changes. We can review the VAT liability of your sales and advise on the correct VAT treatment. Should you purchase any goods or services which are subject to input VAT restrictions, we will confirm these are treated correctly. We will help with HMRC VAT inspections and our expertise in this area can help ensure these run smoothly.
Occasionally errors can occur in your VAT record-keeping. We will help you rectify these mistakes and submit voluntary disclosures to HMRC to notify them of any VAT under or overclaimed and help you to mitigate any potential penalties and interest.
Making Tax Digital
HMRC introduced Making Tax Digital (MTD) in April 2019 for VAT registered businesses with taxable sales over £85,000. It requires these businesses to keep digital records and submit their returns through an accounting software package or bridging software. From 1 April 2021, we expect HMRC to adopt an increasingly punitive approach to businesses that do not comply with the MTD rules.
Our Indirect Tax team will review your current accounting processes and work with you to make changes to avoid any penalties for non-compliance. We can submit your returns to HMRC using our bridging software solution where this facility is not available in your existing accounting software.
