VAT do's and don'ts

When it comes to VAT, HBB can advise businesses in the Colne area 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 - late registration can result in severe penalties
DO notify your local VAT office when major changes take place - changes must be notified within thirty days
DO retain records for the last six years - these could be demanded by law
DO charge VAT on supplies 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 flat rate valuation

DON'T claim the VAT paid on the purchase of a motor car - it is not recoverable except in some very special 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)
DON'T forget to account for VAT on inter-company charges
DON'T charge VAT on the transfer of a business as a going concern (make sure contracts incorporate appropriate VAT provisions)

If you’re in the Colne area and would like to discuss VAT in more detail, please contact the team at HBB.

18 Sep 2020

MPs urge Chancellor to extend job retention scheme

MPs have urged Chancellor Rishi Sunak to extend the Coronavirus Job Retention Scheme (CJRS) to help avoid mass redundancies.

25 Aug 2020

Closing the UK's skills gap

Outlining ways in which the UK can boost employment.

Tweets by HBBaccountants

Accessibility links

VAT do's and don'ts

MPs urge Chancellor to extend job retention scheme

Closing the UK's skills gap