VAT 

 by a former HMRC Solicitor

The VAT world is a constantly evolving and changing one and staying on top of the latest developments is very important to ensure you remain VAT compliant and are not paying too much VAT or are at risk from a VAT investigation from underpaying or getting things wrong.

The Value Added Tax Act 1994 (VATA 1994), as well as the Principal VAT Directive of the European Union (2006/112EC) (PVD) ,are the key legislative provisions when dealing with Value Added Tax (VAT). 

The VATA 1994 comprises approximately 102 Sections and 20 schedules and the PVD is made up of 414 Articles and 12 annexes negotiating around this minefield of legislation is tricky at best as is negotiating around all of the other legislation, the HMRC guidance and notices.

With such a plethora of legislation and guidance, determining ones VAT liability is also no easy feat.

Recent legislation has also been enacted allowing for a penalty regime for inaccurate VAT returns.

The penalty is calculated as a percentage (which can be as high as 100%) of the tax unpaid, understated, over claimed or under-assessed, as a result of the errors.

 In addition to the penalty you will also have to pay the VAT and any interest due and as such the sums involved can be significant.

It is therefore imperative to take care when submitting VAT returns and it is imperative to contact HMRC as soon as possible should you discover an error as there may be scope to mitigate any penalty. 

 

Please contact Raj Basi on  07957 786 370 

or 0845 270 2511   email rb@kaslers.co.uk    for a discussion on how he can assist you with your VAT and Indirect Tax matters.