VAT is a transaction based, self-assessed tax. It is essential that a trader considers the VAT implications of any transaction before proceeding. Once transactions have been entered into, the VAT position is effectively set in stone. Mistakes can be impossible or at best difficult and costly to correct.

Often traders are unaware of problems in their VAT compliance and only become aware following a VAT control visit. Typically an assessment for underpaid VAT will follow together with interest and a possible misdeclaration penalty. Unfortunately, a visiting VAT control officer will seldom identify errors in your favour!

Effective planning and the implementation of fully compliant VAT accounting can help to reduce costs and will invariably improve cash-flow.

  • The person submitting the VAT return is responsible for ensuring that it is correct to the best of his knowledge. Can you or other board members/ partners be sure of this? You may be personally liable for an incorrect return.
  • The Senior Accounting Officer may have personal responsibility for errors. Are you happy that you have taken all reasonable steps to ensure that your business is VAT compliant?

4 Eyes Ltd can advise on VAT compliance and planning. We offer training, VAT reviews and one-off advice on transactions. We can assist in negotiations with HM Revenue & Customs (including making a voluntary disclosure of any error and submitting reclaims for VAT). We ensure that VAT savings are routinely identified.

Where your business makes exempt supplies, we will advise on the implementation of the most advantageous (and readily workable) partial exemption method and will also conduct periodic partial exemption reviews to check that the method is being operated correctly and all recoverable VAT is being identified.