VAT – Top 10 Tips for small businesses and start ups

By   5 July 2018

VAT Basics

Small business and start ups have a lot of things to think about – VAT being just one. However, failure to consider VAT can lead to difficulties and penalties. So here are some pointers for new and/or growing bushiness:

  1. Plan ahead and know when to register for VAT
  2. Make contact with your advisers
  3. Monitor your turnover so that you know when you are approaching the VAT registration threshold
  4. Keep your records up-to-date and check accounting documents
  5. Speak to us if things go wrong or there’s something you don’t understand
  6. Deal with VAT enquiries or HMRC’s requests for information promptly
  7. Manage the VAT within your business cashflow
  8. Don’t worry if Customs make contact with you
  9. Right tax – right time
  10. If you are not happy with Customs’ behaviour or have received an unhelpful or incorrect ruling; challenge it.

The overall message is; talk to a professional at an early stage. Timing is very important for VAT and you usually only have one chance to get it right.

Finally, regarding the first point – it may benefit a business to VAT register before it is required to (a so-called voluntary registration). I shall look at that in more depth in my next article.