1. Pay VAT on time
Avoid penalties by paying VAT on time. If your VAT return is late, HMRC will make you pay a percentage of the unpaid VAT at the due date. You will not be charged the first time this happens but you a warning will be issued. If it occurs again within the following 12 months, an assessment will be made to determine a surcharge of up to 15%.
2. Charge the appropriate VAT amount
There are different types of tax, therefore you must make sure that you apply the right amount. Charging 17.5 percent, 5 percent, 0 percent or exempt can make a noticeable difference to your profit margins. If you are unsure as to what VAT to charge, seek expert advice from a VAT consultant.
3. Pay VAT online
Paying VAT online means that the due date for the return and payment to arrive at HMRC can be extended by an extra seven calendar days. Continue reading ‘VAT Return Tips For Your Business – 10 Ways to Save Money and Time on VAT Returns’ »