Starting and running a business in the UK in this time of competition is indeed tough, but if you pay heed to valuable VAT advice while doing business then you can ensure that your taxation needs are handled professionally. You can now concentrate on your business by paying heed to advice that will help save time, effort and money in the long run.
Several countries in the European Union including the UK have shifted over to vat or value added tax as an efficient method of collecting taxes on goods and services while increasing their revenues at the same time. If you are trading in the UK and need to import goods from other non eu or eu countries while selling them in local markets then you might soon find yourself eligible for vat registration. Once your taxable sales touch the magic figure of £70,000 in the past 12 months then you will need to apply for vat registration, a process that will normally reward you with your own vat certificate within a month.
Upon turning into a vat registered trader, you will need to follow several vat rules and regulations to stay clear of rubbing the hmrc vat department the wrong way. It is in such conditions that this vat advice will reward you with efficient tax collection, timely vat returns and successful vat refunds. You should firstly hire an expert and sincere vat agent that is totally conversant with each aspect of uk vat and eu vat rules. In addition you too should pick up much more knowledge on various aspects of vat other than simply knowing what is vat.
Your vat agent would be able to guide you on how to apply for vat registration by attesting all the required documents so that you get your vat number within the shortest possible time. You should also follow all guidelines given by hmrc vat while issuing each vat invoice so that vat rates and amounts are displayed clearly. An easy-to-use vat accounting software package along with an internet enabled-computer too should be utilized to use all vat online services offered by hmrc to the fullest. You should also pay heed to all vat classifications issued by hmrc so that there is no confusion in slotting your goods or services within the 14,000 classifications specified by hmrc.
It is also very important to file your vat returns on time as well as scrutinize each vat refund application thoroughly before applying for the same. Newer vat rules by the hmrc vat department advocate stricter fines and you should ensure that you always stay on the right side of all vat rules so as to get it right the first time around itself. If your business involves many vat transactions and refunds or imports from various vat friendly countries then regular vat audits will ensure that any mistake is caught well in time and rectified immediately before it reaches the concerned vat department.
Although vat is a fairly easy tax system to understand and implement, you might still end up making costly mistakes due to large volumes, or shortage of time or attention. In such cases, following these vital vat advice tips will ensure that you collect and pay your vat dues on time as well as recover all vat refunds without facing any resistance from any quarter.