VAT do's and don'ts

When it comes to VAT, James Todd & Co can advise businesses in the Chichester 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 Chichester area and would like to discuss VAT in more detail, please contact the team at James Todd & Co.

Try a site search Tax return, dividends, pension, autumn statement...

SagexeroCCCI
Company details

01243 776938

James Todd & Co, 1&2 The Barn, Oldwick, West Stoke Road, Chichester PO18 9AA
James Todd & Co, 16 Northgate, Chichester, West Sussex PO19 1BJ
Copyright

© 2021 James Todd & Co. All rights reserved.

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


James Todd & Co is the trading name of James Todd & Co Limited. Chartered Accountants and Registered Auditors. Registered No: 07350649 in England. VAT No. 322087875. ICAEW Firm Reference No: C002730145 and James Todd & Co (Lewes) Ltd (formerly known as Axtons). Chartered Accountants. Registered No: 11214467 in England. VAT No. 290460506. ICAEW Firm Reference No: C005791297

Registered to carry out audit work in the UK and regulated for a range of investment business activities by the Institute of Chartered Accountants in England and Wales. Details of our audit registration can be viewed at www.auditregister.org.uk

Details of our Designated Professional Body (DPB) activities can be viewed at register.fca.org.uk. A member of the ICAEW Practice Assurance Scheme.