VAT Services
Contact Our Tax Advisers
Under investigation or in a dispute with HMRC?
Don’t panic! Our VAT experts can guide you through the options that are available and make the process as stress-free as possible.
Need a VAT Health Check?
Our experienced VAT experts can conduct a mock inspection to review your ‘VAT health’ to ensure your business systems and processes compliant with HMRC regulations, and to identify areas where you can improve your VAT position.
Need VAT advice on a property transaction?
If you get the VAT treatment wrong it could be extremely costly, with unexpected bills and potentially substantial penalties. Reclaiming VAT on property transactions is an area that requires careful consideration to not only current but also future circumstances, and so advice from a specialist is crucial throughout.
Our VAT Services
VAT Investigations & Disputes
The world of HMRC inspection can be daunting, it is imperative throughout the process that you comply with HMRC and present both detailed and concise information. Working with Hawsons’ team of tax experts will allow you to navigate the inspection, ensuring a fair and efficient outcome.
With our advice, there may be the chance to reduce any VAT liabilities (we recently resolved a £4m VAT assessment, for one of our clients, down to zero), penalties due or to structure a more favourable payment plan if required.
We can also assist in resolving queries or disagreements between suppliers, customers and HMRC.
VAT Registration & De-registration
- We can advise on voluntary VAT registration, which may increase the VAT amount an individual/ company can claim back, and backdating a VAT registration which may be beneficial in certain industries.
- VAT deregistration can cause problems if a business has assets on hand at the specified date – we can help with these issues.
VAT Health Check
Is your business ready for a VAT inspection from HMRC? Are your systems and processes compliant? We can carry out a “mock inspection” to critically review how your business deals with VAT, highlighting areas of concern and identifying opportunities to improve your VAT position.
Partial Exemption Methods & Calculation
Partial exemption legislation can be an overwhelming topic for companies with both taxable and exempt supplies. If this is applicable to your business, it is vital the correct calculations are considered to not only ensure compliant accounting but also to ensure the recovery of applicable VAT.
VAT on Property & Options To Tax
Getting the VAT treatment wrong on a property transaction could be extremely costly, with unexpected bills and potentially substantial penalties.
Consider VAT at an early stage and identify potential VAT savings as well as future plans to ensure the correct treatment is applied from the outset.
Special VAT schemes
Cash Accounting Scheme, the Flat-Rate Scheme and the Annual Accounting Scheme may all be used to simplify VAT for your company/business.
We are also used to dealing with VAT payments on account for larger businesses.
VAT Planning
We can help you and your business plan for VAT. This can lead to VAT savings in the short/medium term. This will also aid not only compliance but also the efficiency of VAT returns and the administration of VAT across your business.
Making Tax Digital
We can set you and your business up for making tax digital and provide any software assistance required (i.e. we can submit returns if required on behalf of the company)
For more information please visit our MTD for VAT article.
Our VAT Expertise
VAT is a tax on transactions that is likely to affect the operation of your day-to-day business. Therefore, it is very important for businesses to be compliant with the ever-changing VAT regulations. VAT on services is a complicated area. VAT rates may or may not apply depending on who is providing or buying them, where they are provided and the precise nature of the services provided.
Our VAT services can help assess any VAT risks to your business that may occur. One-off transactions, like purchasing a property, can be fraught with VAT dangers and the likely costs/penalties should a transaction be incorrectly accounted for, can be very costly. Our VAT services experts can help structure any sale/purchase prior to the transaction to alleviate any stress on the business. It is always wise to seek advice before a purchase/sale rather than after, when HMRC may come calling to check VAT records.
Meet our team
Meet our team
Benefits of working with Hawsons
Take time to get to know you, your business and your VAT situation
Experienced and highly knowledgeable
Partner-led service
Case Studies
Hawsons successfully settles VAT Case
We have successfully settled another VAT case and reduced the tax liability from over £4M to zero, for one of our clients.
FAQs
When do I have to register for VAT?
You must register for VAT if your taxable turnover is more than £90,000. However, it may be in your interest to register for VAT before you reach this threshold. There are other limits/thresholds to be aware of, so please contact our VAT services experts who will advise on all matters to do with VAT registration.
How can I claim bad debt relief?
If your customer has not paid for a supply of goods or services, you may be able to claim Bad Debt Relief (BDR). Our VAT services experts can help assess the position of your debt and ensure the correct relief is applied where available.
Various records and evidence must be kept (for four years from the date of claim), in particular, to identify:
- The time and nature of the supply, the purchaser, and the consideration
- The amount of VAT chargeable on the supply
- The accounting period when this VAT was accounted for and paid to HMRC
- Any payment received for the supply
- Entries in the refund for bad debts account
- The accounting period in which the claim is made.
What VAT rates are there?
There are four criteria with which a transaction may fall within, these are as follows:
- Standard rate – 20%
- Reduced rate – 5%
- Zero Rate – 0%
- Exempt
Here at Hawsons, we can provide VAT services to assist our clients with the VAT liability of their supplies, ensuring the various ranges of services and supplies are correctly accounted for.
The VAT treatment of services and supplies vary depending on various conditions, such as:
- who’s providing or buying the goods/services
- where they’re provided to
- how they’re presented for sale
- the precise nature of the goods or services
- whether you obtain the necessary evidence
- whether you keep the right records
- whether they’re provided with other goods and services
What does Making Tax Digital for VAT, mean for my business?
All VAT-registered businesses are now required to keep digital records and need to use software to submit their VAT return. Migrating to digital systems is therefore crucial if you have not done so already, please speak to one of our specialists if you need advice on how to do this.
How do the new VAT penalties, that are to be introduced on 1 Jan 2023, work in practice?
Late submission penalties will be based on a points system, meaning that those who are late with a return/payment will not be hit as severely as serial offenders. While the thought of penalties and fines is a daunting prospect, working closely with a team of tax specialists can ensure this is mitigated.
How does an Option to Tax (OTT) affect my commercial property?
Commercial property is usually exempt from VAT. However, it may be tax efficient for a business to elect an OTT their commercial property. The election is however irrevocable baring significant events and so it is vital that the benefits, administrative requirements, and compliance hurdles are considered at outset.
What is postponed VAT accounting?
This means that a business accounts for import VAT on their VAT returns, instead of paying at Customs, and is a cashflow benefit to most businesses as input VAT can be claimed on the same return. Weighing up the advantages of this can prove effective in establishing efficient practises, please consult our specialists if you would like to explore your options when importing goods.
How often will I have to submit a VAT return?
Usually, businesses will have to submit a VAT return every 3 months. However, in certain circumstances, this may become monthly/annually. To ensure the returns are filed both accurately and timely, please consult our tax specialists.
