VAT do's and don'ts

When it comes to VAT, McDade Roberts can advise businesses in the Preston area on some of the important steps to take – and the pitfalls to avoid. This article considers some important VAT Do’s and Don’ts.

  • DO keep a monthly record of your turnover - late registration can result in severe penalties
  • DO notify your local VAT office when major changes take place - changes must be notified within thirty days
  • DO retain records for the last six years - these could be demanded by law
  • DO charge VAT on supplies to your staff
  • DO charge VAT on any equipment or vehicles (except motor cars) that you sell or part-exchange
  • DO account for VAT on fuel used for private motoring using the appropriate flat rate valuation
  • DON'T claim the VAT paid on the purchase of a motor car - it is not recoverable except in some very special cases
  • DON'T claim the VAT paid on goods or services used for private purposes. Where there is an element of private use (e.g. telephone) an appropriate percentage should be claimed. Special arrangements apply to private use of petrol (see above)
  • DON'T claim the VAT paid on entertaining (except for reasonable, relevant costs of entertaining overseas customers)
  • DON'T forget to account for VAT on inter-company charges
  • DON'T charge VAT on the transfer of a business as a going concern (make sure contracts incorporate appropriate VAT provisions)

If you’re in the Preston area and would like to discuss VAT in more detail, please contact the team at McDade Roberts.

Follow us on Twitter -

Copyright

© 2018 McDade Roberts. All rights reserved.

We use cookies on this website, you can find more information about cookies here.
Contact Head Office

Please call:
01772 717110

Quick links

Home | PII | Contact us | Site map | Accessibility | Disclaimer | Help |

Registered Office and Head Office
McDade Roberts Accountants Ltd, Company Registered Number: 03493184 - Registered in England and Wales
Registered Office - McDade Roberts Accountants Ltd, 316 Blackpool Rd, Fulwood, Preston, Lancashire PR2 3AE

McDade Roberts Accountants Ltd is a subsidiary of McDade Roberts Holdings (2016) Ltd

Company Registered Number: 10406098 - Registered in England and Wales

Registered Office - 316 Blackpool Rd, Fulwood, Preston, Lancashire PR2 3AE