Advice on VAT for Transactions

As a business, optimising your VAT position in the everyday course of your business transactions should be a key priority. Failing to do so can result in unnecessary costs for your organisation, or mean that your compliance obligations are not being met.

At The VAT People, we have years of experience in providing expert advice on VAT for business transactions, offering a wide range of advice and support services to help organisations decipher any complex VAT issues with which they may be struggling.

Our team of specialists has helped hundreds of businesses to maximise their potential through high-quality and professional VAT advice, helping companies to enhance their accounting efficiency, identify opportunities to save money, and remain in full compliance with VAT law.

Contact The VAT People to discuss your circumstances by calling 0333 3638 012, or fill out an online enquiry form and we will get back to you at a convenient time.
 

How can we help you

The VAT People are one of the UK’s largest and most comprehensive sources of VAT and customs advice. Our highly qualified team of expert consultants work with clients across the country to provide holistic advice on the most effective ways of managing their VAT responsibilities.

For a more general overview of the services we offer, you can also check out the following information pages:

General VAT enquiries
HMRC assessment reviews
HMRC VAT investigations
Partial exemption
Transactional VAT advice
VAT health checks
VAT planning
Dispute prevention and resolution
Reclaiming VAT from overseas
VAT training

We can advise on the following topics:

  • Ensuring you have correctly identified the VAT liability of all of your transactions
  • Reviewing your VAT recovery processes for transactions
  • Assessing your policies on zero-rated or exempt supplies to ensure they are compliant and up to date
  • Making sure you are aware of and taking advantage of any available relief schemes
  • Highlighting areas of potential concern with your transactional accounting, and recommending effective solutions

What can we advise you on?

The VAT People can provide comprehensive advice on a wide range of topics, including the following scenarios:

  • If clients supply services on an ongoing basis, do they maximise cash flow by only issuing invoices when payment is received, with requests for payment being raised only to collect payment?
  • If a business has a turnover of less than £1.35 million, are they making use of a cash counting arrangement, by which VAT on sales is only payable when a payment is received? Are they also aware that VAT on purchases can only be claimed when a payment is made?
  • If the company is making use of bad debt relief and the client is on invoice accounting, does it adjust the VAT on any debts that are more than six months old, irrespective of whether the debt is genuinely bad? Does the client adjust for VAT creditors over six months old?
  • If zero-rated or exempt supplies are made, does the client regularly check that the liability remains correct, e.g. do they check the conditions to ensure the supply should be VAT-free?
  • What kinds of penalties can you incur by incorrectly dealing with VAT taxes? Whether looking to pay or file documents, click here to read more.

 

If you have questions about these or any other aspects of VAT on business transactions, The VAT People are here to help. 

FAQs

What is VAT grouping and how can it help my business?

Companies looking to streamline their VAT transactions can form VAT groups, which consist of multiple entities that must be under common control, and appoint a representative member on forming the VAT group. This allows the group members to be treated as a single taxable person for VAT purposes, submitting a VAT return covering the entire group’s activities in the name of the representative member. Consequences of VAT group treatment include;

  • Any business carried on by a member of the group is treated as though carried on by the representative member. Any supply made by or to a group member is treated as a supply by or to the representative member.

  • Any supplies made between group members that would ordinarily be subject to VAT will be outside the scope of UK VAT, and as such output VAT is not due on such charges, nor is a VAT invoice required to be issued. 
  • Input tax recovery is determined in accordance with the activity of the VAT group as a whole. Furthermore, partial exemption rules apply to a VAT group as a whole in the same way as they would a standalone business. To clarify, if a group member solely generates VATable income, VAT can still be reclaimed in full on costs that solely relate to the activity of that company.
  • All group members are jointly and severally liable for any VAT due from the representative member.

If you or your client are looking to form a VAT group but are unsure of what implications this may have for the entities involved, please call our free VAT helpline for an initial discussion to identify if there are any VAT savings or VAT issues that may require our assistance.

Contact us

For more information on the VAT advice we can provide, contact The VAT People today. You can get in touch either by calling 0333 3638 012, or fill in an online enquiry form to request a call back at a time that suits you.

To learn more about the team who will be advising you, visit our team page.

Useful Information

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