1. Am I sure that a VAT inspection would not find any errors?
- An inspection can result in significant assessments, penalties and interest, apart from a business becoming “known” to HMRC. Peace of mind is a valuable benefit for a business owner too!
2. Am I sure that I am reclaiming as much VAT as possible?
- We often find that businesses miss out on recovering input tax, this clearly results in an actual cost.
3. Do I take full advantage all available VAT reliefs, customs exemptions and duty refund schemes?
- Failure to do so will create a tax cost and may be putting a business in a less competitive position.
4. Am I up to date on the indirect tax developments in my key markets?
- Indirect tax changes rapidly, and so does the market place. Being unaware of changes that affect you may result in VAT being overpaid, or penalties being levied if you have underdeclared tax. It may also put you at a competitive disadvantage.
5. Have I considered the impact of tax rate changes on my pricing and margin, and have I taken the necessary measures?
- Budgeting is affected by VAT. Failure to consider indirect taxes may eat into profit.
6. Do I collect all the data about my customers and transactions that could be required by tax authorities?
- As in many VAT circumstances, getting it wrong or missing something results in penalties.
7. Do I comply with all indirect tax requirements in the jurisdictions where I operate or where my customers belong?
- VAT and GST does exist outside the UK and ignoring overseas indirect tax obligations may result in action being taken by foreign authorities which will prove to be very uncomfortable and expensive. It is important to understand the rules for indirect tax in each country/area you trade. Don’t get caught out.
8. Do I have the tools to analyse my indirect tax flows and data?
- Allocating sufficient technical and human resources to VAT is important. Seeking professional advice at the appropriate time is also prudent.
9. Could changes in the way my business is structured or how transactions are organised improve my indirect tax position and/or reduce complexity?
- Saving money and reducing tax complications must be near the top of every business’ wish list. Seeking professional advice on structuring a business or a transaction goes a long way to achieving this
10. Is my business using the right VAT scheme?
- There are many special schemes that a business may use, from the Flat Rate Scheme to Margin Schemes. Most are optional, but some, like the Tour Operators’ Margin Scheme are compulsory. Choose the wrong one, or being unaware of a beneficial scheme could cost.
It is important to constantly monitor a business’ VAT position. The nature of trade changes, technology changes, case law changes and the VAT rules are constantly in a state of flux. It is easy to assume that everything is alright because it has always been done that way, but there may be significant exposures and missed opportunities out there. Things will also change once the terms of Brexit have been agreed (or not). We offer services from a basic healthcheck to a full technical review. A review will let you rest easy in your bed if nothing else!