5 Effective Tips You Should Know for VAT Planning

 

Blocks spelling “TAX”
tax-word-on-top-of-gold-coins

Is your business registered for VAT? If so, you need to start VAT planning to ease your burdens and improve cash flow. As a business owner, you need to think about your company’s financial stability. VAT planning is especially helpful if you’re not getting any tax relief.

Since VAT is an important part of corporation tax, accounting for it can be challenging. Plus, it also affects your business’s profit margins and competitiveness. To handle VAT effectively and keep HMRC happy, read on.

For accounting and tax consultants in London and Walsall, visit IBISS & CO.

Defer the Time

When you’re issuing a sales invoice, make sure to time it. You can improve your cash flow by ensuring that sales invoices are issued when the VAT period begins. This will allow you to manage cashflows better and is only possible with a tax accountant’s help.

Optimise VAT Recovery

When you incur costs and have purchase invoices, you can optimise VAT recovery on them. If your costs and purchases are incurred at, after, or at the end of a VAT quarter, you can recover the tax from HMRC instead of paying it to your supplier or vendor. This also boosts your overall cashflow.


Tax written on yellow paper
crumpled-yellow-notepad-paper

Make Bad Debt Relief Claims

If you have been accounting for VAT on any items sold to your customers, and they have yet to pay for those items, you can claim relief on this. This will be your outstanding VAT and you can write it off as a bad debt only for this relief. You can continue to pursue the outstanding amount, and if the payment is received, you can get the relief adjusted.

VAT Grouping/De-Grouping

If companies are registered for VAT and are dealing between themselves, then VAT is not charged on those group supplies. This allows for a cashflow advantage.

Use VAT Schemes

There are certain special schemes for VAT accounting that are particularly used by small businesses. This helps them pay VAT after some time or pay less. You can review your business’s current circumstances and go for a tax accountant consultation in London. A tax advisor can help you understand your VAT position better with HMRC.

How IBISS & CO. Can Help

IBISS & CO. is a charted accountancy firm with the best tax accountants and advisors in London and Walsall on their team. Their specialists help businesses improve VAT cash flow and reduce tax liabilities. They also help business owners get relief and other favourable results with HMRC.

Get in touch with them to discuss VAT.

Comments

Post a Comment

Popular posts from this blog

Why Self-Assessment Tax Returns Should Be Handled by An Accountant

Image
professional-accountant   It’s safe to say that doing taxes isn’t everyone’s strong suit . If you own a small business or have a complicated tax structure as an individual, it is better to hire a chartered tax adviser  or an accountant to help you with your self-assessment tax returns. Self-assessment tax returns  must be completed once a year, and it indicates how much taxable income you’ve earned during the year and lists any deductibles or expenses that you may be able to claim. A chartered tax accountant can help you navigate the complexities of these tax returns, helps you legally maximise the relief you’re eligible to claim, and ensures that the whole process is efficient and smooth. Here are some reasons why an accountant should handle self-assessment tax returns. Minimise The Chances of Errors Getting the help of professional chartered accountants & business advisers  in Walsall, the UK,   for your self-assessment tax returns will minimise the error...
Read more

Four Tips for First-Time Tax Filers

Image
tax-filing The idea of filing taxes for the first time can be overwhelming. However, with the right advice and tools, tax filing can be a breeze. Most first-time filers need to learn some basic things to make the seemingly daunting process much easier. Chartered tax advisors  at IBISS & CO. are here to save the day. They're collated a few tips to help first-time filers get through the tax season stress-free. Tip #1- Start Gathering Relevant Tax Information Early It can be frustrating when you cannot locate the necessary receipts and documents you've saved throughout the year when it's time to file the taxes. Preparing your tax return can become stressful if you can't remember where the important receipts for the expenses are. It's recommended that you take a little extra time to plan ahead and make life a lot easier by keeping track of all the necessary information. Store everything related to tax credits and deductions in a box or file in an organised manner so...
Read more

Do You Need to Keep Receipts for Tax Purposes?

Image
Tax-records Maintaining small records often seems to be a hassle for many business owners. Businesses in the UK are no different as they struggle to manage their record-keeping and often end up discarding important receipts. While we understand it’s not very appealing to keep piles of receipts and invoices, doing so is crucial for many reasons. The UK government collected £716 billion  in corporation tax  in 2021/22, and many businesses that enjoyed tax benefits did so while maintaining their financial record. Want to learn more about it? Continue to read below. Importance of Keeping Receipts Reading these benefits below will change your mind if you don’t want to hold onto your receipts. Have a More Streamlined Record Businesses across the world are required to have a well-organized and streamlined record for tax purposes. Keeping a record of all your business purchases on software or application can help you with that. Receipts come in handy to explain your spending and incom...
Read more