When it comes to VAT, Coates & Co can advise businesses in the Lancashire 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)
Get in touch
If you are in the Lancashire area and are looking for support and advice from a team of professional accountants and business advisers, contact Coates & Co.