Love it or hate it, Value Added Tax (VAT) is here to stay. It is vital to ensure you are paying the correct rate of VAT, and you are paying on time.
You must abide by these rules and if you find, for whatever reason, that you are unable to pay your VAT on time, it is imperative that you inform HMRC immediately. You can avoid getting into this situation by engaging a Bookkeeper on a regular basis, who will continually be looking at your business finances and can give you assistance so that you do not, hopefully, get into that situation.
There are fines for all sorts of reasons, which can be:
You can find out more on www.gov.uk/guidance/vat-guide-notice-700
Or you could call the VAT Helpline on 0300 200 3700 available Monday to Friday 8am – 6pm. Closed on Saturday and Sunday and Bank Holidays.
From 4th January 2011, VAT increased form 17.5% to 20% on most goods and services.
Applications are assessed on a case by case basis. You might be exempt if you:
You’re automatically exempt and do not need to apply if:
To apply for an exemption you need to contact HMRC by phone or write to them.
BEFORE you contact them you will need the following:
By phone – 0300 200 3700 or if you cannot speak or hear on the phone – call 18001 then 0300 200 3100.
By post – BIG TIP- send it by recorded delivery so you can check it’s been signed for online via the Royal Mail website. This address will be on your receipt.
HM Revenue and Customs - VAT Written Enquiries Team
21 India Street
HMRC may make a Tax Investigation to your business premises if they are not satisfied with the way you are conducting your VAT. It would be advisable to contact your Insurance Broker to see if they can provide a policy to cover for this unfortunate event.
Alternatively, some Accountants also offer this service. It may also be worth speaking with The Federation Of Small Businesses or the Chamber of Commerce regarding this. There would be a fee for joining up to these services, but it may be worth a phone call for an initial chat.