There are many mistakes that you might be making while filing VAT and most of these are common. If you are in London you need to check the VAT rates before filing so that there are no problems later. So, let us take a look at the mistakes and how they can be avoided.
Double-checking the figures that you enter before filing your VAT return in London will help you to avoid the common problems that might arise later. So, you need to be careful while filling the form.
If you wish to claim the VAT you need to make sure that you have the receipt. Check if the items that you bought have VAT included. If you do not see any figures that represent the tax, you do not need to file for it. However, there are some exceptions to the rule and if you are not sure about them you need to visit a tax consultant.
This is a common mistake that we all make. You have to make sure if you are properly claiming VAT on non-business expenses.
If you have bought something that meets your business as well as personal needs, you must claim the VAT only for the business part. There are many instances where the full amount is claimed for the business part.
For private use, you should not claim VAT and this is another mistake made by many. The tax can only be claimed on the vehicle that you use for your business purposes. But, if you use your vehicle for both purposes, you need to visit a tax consultant who can guide you on filing the returns.
VAT cannot be claimed back for entertainment purposes. There are some rules that can give you an upper hand for winning contracts, it is better that you consult this part with a professional before filing for VAT return in Oxford Circus to avoid the problems that can arise later.
Due to poor bookkeeping, several problems can come up. So, before you make a claim, check if your business has been classified as marketing. Some of the other things that you need to check are if the input tax has been claimed on the items that do not include VAT such as train tickets, stamps, etc. Additionally, it is also important to check if input tax has been claimed on the costs that you have incurred outside the UK.
Many people claim for VAT twice. This is a common mistake when people claim the actual and Pro-forma invoice. To avoid this it is important to talk to a consultant who can give guidance on filing the tax without making this mistake.
Many people do not comply with the rules as they ignore demands and notices. This is a costly mistake. If you have been sent a notice with the assessment, you have to send them the current return within the stipulated time. Failing to comply with all these can attract penalties.
So, to be safe it is always recommended to consult a professional before you file your VAT return in London.
The author is the owner of a company that provides tax consultancy for filing VAT returns in Oxford Circus and London and helps in solving several other tax-related problems.