VAT registered companies are required by law to have an accounting system setup for recording VATtransactions. The HM Revenue and Custom (HMRC) select at random VAT registered enterprises to inspect their current VAT records. Those business who do not maintain satisfactory VAT accounts are subject to penalties. The VAT inspectors will then continue to monitor your VAT records until they deem that the business has adopted a satisfactory method of recording VAT figures.
VAT registered businesses are legally obliged to retain the following VAT records for a minimum of six years.
- Sales Invoices in sequential numbering
- Suppliers’ VAT numbers on all Purchase or Expense Invoices
- The VAT transactions for each VAT return including the calculation of output taxes less input taxes
- VAT returns copies previously submitted to HMRC displaying the VAT payable or refund
HMRC is able to go back three years to review the amounts of VAT paid in order to calculate that the correct amount of VAT has been paid to the VAT office. If it’s discovered that the business has acted fraudulantly, HMRC can investigate the previous 20 years.
VAT relating to petrol and vehicles
VAT has specific regulations regarding petrol and vehicle usage. Itemised records must be kept for your business and private mileage in order to substantiate claims for private usage exclusion from the VATaccounting records. Business claiming petrol reimbursement must ensure they apply the correct fuel scale charge.
VAT consultancy and planning service
VAT is a continually revised tax and therefore prudent businesses will continually turn to VAT experts for up to date advice. White Fortt considers the management of our clients’ VAT affairs as one of the most fundamental of our range of services. Consequently, White Fortt provides a full and comprehensive VATconsultancy and planning service.
- UK VAT standard registrations
- UK VAT specialised registrations for non-UK businesses
- VAT tribunal advice
- VAT monitoring
- VAT planning
- Refunds of VAT for overseas businesses in the UK
- Refunds of VAT for UK businesses overseas