Munster’s first independent VAT consultancy practice providing specialist VAT and Indirect tax advisory, assurance and interim management support services to owner managed businesses, small & medium enterprises, accountants and legal practices.

VAT in these austerity times: Top Tips for survival

Friday, October 1, 2010

by Nick Ryan

In this current climate businesses need to focus on cost driven measures to aid their survival. VAT can be the least of a business’s worries in these trying times and this can lead to significant if not fatal damage to businesses if they fail to manage their VAT. We offer some top tips for businesses to apply as part of their template for survival.
1. Are your VAT liabilities correct – undertake regular reviews and always check the liability for new products and transaction routes.
2. Be compliant – keep up to date records, submit VAT returns on time with any payment due, review accounts regularly to avoid costly errors – Complete our Free VAT Risk Assessment questionnaire for a quick assessment on where your business stands.
3. Be aware of VAT changes.
4. Reclaim VAT on operating costs etc. at the earliest opportunity.
5. Manage your cash flow and minimise your VAT throughput.
6. Do not use your VAT account to cover other costs.
7. Lease or purchase – consider the options.
8. Bad debt relief – understand it and apply it.
9. Recover VAT incurred elsewhere in the EC.
10. If in doubt – Shout!