VAT for SMEs
VAT can be a daunting thought and as such our team of experts are here to advise you on all aspects including the implications of transactions and recommendations to make you as tax efficient as possible.
The Indirect Tax team are experienced and agile enough to provide clients with a service they are truly looking for – offering proactive practical advice and opinion.
We can assist by advising on issues including:
- Cash flow: there are many ways of improving cash flow by managing VAT processes and procedures. This can be as simple as implementing a purchase accrual or changing a VAT stagger to agreeing a partial exemption special method (“PESM”).
- VAT inspections and assessments: We can assist with dealing with HMRC at all levels; from managing queries, reviewing HMRC assessments and minimising penalties, to instructing Counsel and lodging appeals to the First Tier Tribunal.
- VAT claims and disclosures: we can advise on the best way to manage refund claims and error disclosures to mitigate potential penalties.
- Making Tax Digital (“MTD”): businesses now have until their first VAT return period starting on or after 1 April 2021 to put digital links in place. We have found that the implementation of MTD has been very useful as it has enabled clients to review their charts of accounts and revisit processes and procedures which have been used for many years. This has been helpful in designing PESMS.
- VAT structures: we can assist on whether VAT registration is possible/beneficial and whether a VAT group can create benefits by reducing VAT costs or maximising VAT recovery. We can also advise on the VAT implications for Holding Companies.
- Property transactions: we can ensure that the correct VAT liability is applied to the acquisition, construction and refurbishment of property and assist clients to optimise VAT recovery, including through capital goods scheme calculations where we can help to create efficient methodologies. We also assist with the calculation of Stamp Duty Land Tax (SDLT) and VAT implications. The Domestic Reverse Charge (DRC) is due to be implemented in Oct 2020 and we can advise on the implications for working capital management and contractual issues.
- The VAT liability of construction services: advising on correct rates of VAT, as HMRC can refuse to make a refund as VAT incorrectly charged is not VAT.
- Trading with the EU: advice and training on the implications of the new VAT and customs obligations.
- Customs duty: ensuring the correct commodity code is used. Advising on efficient structures.
- Customs Training: we also provide Customs training.
- Imports/exports: identifying if the right evidence is held to support input tax recovery or zero-rating and any potential issues with freight forwarders, duty deferment accounts, IPR and customs warehousing.
- Call off/consignment stocks: advice on whether you need to obtain VAT registration in another country.
- International: advice on the varying VAT treatment in other countries; recovery of VAT in other European member states.
- Services supplied/received overseas: advice on place of supply and reverse charges.
- Compliance: including VAT registration, options to tax and VAT returns.
We would welcome the opportunity to discuss your needs with you. For a free introductory discussion please contact Terri Bruce tel: 07929 186391 or complete our enquiry form and we will get back to you.