VAT or Value Added Tax to give it its full name has been around in the UK for over 40 years and has grown over that time to be a highly complex beast and some would say a business burden.
At the same time VAT is a cost effective and efficient tax collection system for HM Treasury because your business is in effect the tax collector. You don’t get paid for providing this service, but you do get penalised if you make a mistake.
VAT is complex and mistakes and errors in accounting for value added tax are expensive and disruptive as they invariably lead to penalties, interest charges, monitoring and frequent inspections from HM Revenue & Customs. An Inspectors role is to:
- Check for VAT compliance
- Find and report errors in your submitted returns
- Collect any unpaid VAT due
- Add penalties and interest charges
- Assess if errors and mistakes are negligent or fraudulent
It is unfortunately commonplace to find VAT errors and unsubstantiated Returns in businesses, which then incur penalties and charges. This is easily avoidable and VAT starts with high quality administration and accurate bookkeeping, as well as a good understanding of the rules applicable to your business model, sector and activities of course.
At ABK we have the experience and knowledge to administrate, manage, record and control your VAT accurately and timely including excise duty for imports, and rules for exports including EC and non EC exports.
Avoid unnecessary and costly VAT errors and the associated disruption, penalties and charges by using ABK to manage, record, control and submit your VAT returns.