May 4th, 2018.

The complex nature of VAT can very often feel like entering into a minefield for businesses across a variety of industries. Even something seemingly stress-free, like registering your company for VAT can be shrouded in mystery, as many firms do not realise they only are required to register for VAT once their turnover on a 12 months basis exceeds the limit of £85,000 VATable supplies, or if they generate VATable income of £85,000 in one single month.

Alongside this, there are numerous additional, often mind-boggling rules in place that must be followed in order to comply with regulations. For this reason, it is often no surprise that businesses across all sectors bury their head in the sand when it comes to VAT.

However, doing so comes with a price. We will look to offer advice on the most common mistakes, helping you in your quest to make some sense of this complicated area.

Using incorrect rates
A widespread lack of understanding is one of the biggest – if not the biggest – issue faced by businesses when it comes to VAT. Of course, this lack of knowledge is highly likely to lead to issues.If your business is not already registered for VAT, it is vital that you check to find out whether sales have reached the limit of £85,000 in the past 12 months of operations, or whether you expect to make VATable supplies in excess of this limit in a single 30-day period.

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