{"id":18880,"date":"2019-02-21T11:10:54","date_gmt":"2019-02-21T11:10:54","guid":{"rendered":"https:\/\/smh.group\/?p=18880"},"modified":"2023-02-15T13:50:33","modified_gmt":"2023-02-15T13:50:33","slug":"three-things-to-watch-out-for-in-your-vat-return","status":"publish","type":"post","link":"https:\/\/devstagesite.co.uk\/smhgroup\/three-things-to-watch-out-for-in-your-vat-return\/","title":{"rendered":"Three things to watch out for in your VAT return"},"content":{"rendered":"<h3><strong>The risks of incomplete VAT filings have been highlighted by a recent victory for HMRC over an appeal.<\/strong><\/h3>\n<p>The appeal \u2013 made by Sacutia Healthcare Ltd (<a href=\"http:\/\/financeandtax.decisions.tribunals.gov.uk\/judgmentfiles\/j10809\/TC06844.pdf\">TC06844<\/a>) \u2013 concerned the father of the company director, who claimed a defence based on carelessness. Unsurprisingly, HMRC took the view that this amounted to \u2018deliberate but unconcealed\u2019 behaviour, which is why it applied substantial penalties of \u00a324,072 on a total assessment of \u00a357,839.<\/p>\n<p>The nature of the filing errors should provide warning for those with responsibility for their company\u2019s VAT filing.<\/p>\n<h3><strong>Export evidence<\/strong><\/h3>\n<p>HMRC found that the VAT return was missing paperwork to support declared exports of goods and documents made to a company that the father was involved with. HMRC also found no record of Sacutia as an exporter. It is essential that you keep complete and accurate records of exports for VAT.<\/p>\n<h3><strong>Deposits on customer payments<\/strong><\/h3>\n<p>The output tax was not correctly reported on customer deposits. A tax point is created whenever a company receives a deposit, as well as the balancing payment, so you must ensure your VAT records reflect every stage of a customer transaction.<\/p>\n<h3><strong>Input tax evidence<\/strong><\/h3>\n<p>As well as the issues with export invoices, HMRC found that Sacutia had claimed input tax on supplies of goods using invalid invoices. They also found uncertainty around pro-forma and VAT invoices, and mistakes in the accounting records. As with export records, you must keep your accounting records complete and accurate.<\/p>\n<p>The case demonstrates the high penalties HMRC will issue where mistakes are made with VAT filing. With Making Tax Digital for VAT just around the corner, we can help you ensure your company filings are error-free.<\/p>\n<p>Contact us on <strong>0114 266 4432<\/strong> or <a href=\"mailto:info@smhca.co.uk\"><span style=\"text-decoration: underline;\"><strong>info@smhca.co.uk<\/strong><\/span><\/a> to see how we can assist.<\/p>\n<p><a href=\"https:\/\/devstagesite.co.uk\/smhgroup\/chartered-accountants\/making-tax-digital\/\"><span style=\"text-decoration: underline;\"><strong>Read more about Making Tax Digital here.<\/strong><\/span><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The risks of incomplete VAT filings have been highlighted by a recent victory for HMRC over an appeal.<\/p>\n","protected":false},"author":4,"featured_media":16743,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[3],"tags":[11,106,104,19,76],"class_list":["post-18880","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-smh-accounting-business-advisory","tag-hmrc","tag-making-tax-digital","tag-mtd","tag-tax","tag-vat"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.9 - 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