Some Common VAT error

[Vinod Aggarwal]

Here are some common VAT error made by small businesses

Each error has the potential to cost you money one way or another, so it is a good idea to familiarise yourself with them.

1. Not adding VAT to expenses that you charge to your clients.
2. When deciding if you have to register for VAT, misunderstanding what is meant by a year.
3. Not claiming all the pre-registration VAT to which you are entitled.
4. Claiming back overseas VAT on your UK VAT return
5. Assuming that any sale overseas is automatically exempt from UK VAT.

feel free to add some more to this list

 

[sheelagh]

Failing to give due consideration to special schemes
1) Flat Rate Scheme
2) Margin Scheme
3)Cash Accounting Scheme (might not save money, but can help with cash flow)
4) Special retail schemes - could save time, which could mean money saved on your bookkeeping bills

Forgetting to apply rules for bad debt relief - claiming back VAT you have paid to HMRC for old unpaid customer invoices

Failing to apply fuel scale charges (if you business pays for fuel for personal use)

Not claiming back VAT on the fuel element of mileage claims (allowed if the employee / director keeps sufficient VAT receipts)

Forgetting to ask retailers to provide a VAT receipt

Not reviewing your purchase ledger - this is my pet hate - failing to obtain copies of missing purchase invoices from your suppliers.

so many more, so little time!!

 

2. When deciding if you have to register for VAT, misunderstanding what is meant by a year.

Yep only a scumbag like the VAT man can have a different year to the rest of the planet,cost us the price of a new car.

Earl

 

[NICHOLASM1987]

i have got a nasty feeling that vat will rise from 17.5% to 20% at least by 2012, any one else concur?

 

[elaine@cheapaccounting]

discussed in this thread:

http://www.ukbusinessforums.co.uk/forums/showthread.php?t=128957

 

discussed in this thread:

http://www.ukbusinessforums.co.uk/forums/showthread.php?t=128957

Blimey its the Glam Rock Accountant.:|

Gives a whole new meaning to getting your figures right.

I know Jenny is a pole dancer ,so whats your thing then.?

Earl

 

[elaine@cheapaccounting]

Blimey its the Glam Rock Accountant.:|

Gives a whole new meaning to getting your figures right.

I know Jenny is a pole dancer ,so whats your thing then.?

Earl

hopefully that is a compliment

Just thought it was about time I updated my photo - the other way was about 4 years ago!

My think is walking I'm afraid. Not quite so glam:

http://www.cheapaccounting.co.uk/elaineclark/photo.php

 

hopefully that is a compliment

Just thought it was about time I updated my photo - the other way was about 4 years ago!

My think is walking I'm afraid. Not quite so glam:

http://www.cheapaccounting.co.uk/elaineclark/photo.php

Well walk this way.

Cause its a compliment ,I mean did I swear.?

Earl

 

[elaine@cheapaccounting]

Well walk this way.

Cause its a compliment ,I mean did I swear.?

Earl

thanks

It's just Glam Rock reminds me of Noddy Holder

 

[Vinod Aggarwal]

Forgetting to ask retailers to provide a VAT receipt

yes it is necessary to ask to the retailer to provide VAT receipt

 

My think is walking I'm afraid. Not quite so glam:

http://www.cheapaccounting.co.uk/elaineclark/photo.php

was that tree green before you hid behind it.?:|

Earl

 

[elaine@cheapaccounting]

was that tree green before you hid behind it.?:|

Earl

you meanie :|

 

you meanie :|

see you misjudge me.:|

I assumed it had turned green with envy.

Having been married for 3,000 years I have developed a high sense of personal survival.

Earl

 

[elaine@cheapaccounting]

see you misjudge me.:|

I assumed it had turned green with envy.

Having been married for 3,000 years I have developed a high sense of personal survival.

Earl

oh bless you - you know how to cheer a girl up on a cold, wet Monday morning

 

[3pic]

Hey - new glamourous photo Elaine.

 

[elaine@cheapaccounting]

Hey - new glamourous photo Elaine.

That's how I always look

 

[Jenni384]

Loving the new pic Elaine, you look fab