The media spotlight continues to shine on the corporation taxes paid by big multinationals, but governments at home and abroad are increasingly turning their attention to indirect taxes like VAT to boost tax revenues.
We find that some businesses often consider VAT, a remote risk. Irregular tax inspections and infrequent contact with HMRC means they are often ill-equipped to assess VAT risk. Many adopt a wait-and-see approach, which can magnify problems if things go wrong.
We have developed a series of key lessons that we think will help your business to improve accounting processes and minimise VAT issues now and in the future.
Middle market businesses often run into difficulties when they do not put in place adequate data collection and management processes or, when they over-rely on individual staff members to complete VAT returns. Issues also occur when there is a lack of understanding about potential hazards caused by transactions that fall outside normal accounting practices.
There are immediate steps that you can take to minimise your VAT issues now and in the future. We have provided a practical framework that will help identify these risks and guiding principles to help you mitigate them.