Registration

  • Should the business be registered?
  • Is basis of registration correct?
  • Are details on registration certificate correct?
  • Do procedures exist for notifying H M Revenue & Customs of relevant changes?
  • Review position at regular intervals.
  • Is the Cash Accounting Scheme for VAT available and would it be beneficial?
  • Is the Annual accounting scheme available and would it be beneficial?
  • Is the flat rate scheme available and would it be beneficial?
  • Is it necessary to register for online filing of VAT returns or is this beneficial?
  • Are any of the special schemes for retailers applicable?

Preparation of VAT Returns

(Most businesses fill in the return and submit online these days)

  • Review sources of information.
  • Prepare draft return.
  • Check for accuracy and completeness.
  • Submit the return and make payment (if outputs exceed inputs)

Input Tax

  • Do any restrictions on input tax exist? If “Yes”, does an agreed method exist and does this method maximise input tax?
  • Are invoice additions and calculations checked?
  • Is input tax claimed at the earliest tax point?
  • Are all claims properly supported? Ensure all supporting invoices kept.

Output Tax

  • Are all income heads reflected for VAT accounting?
  • Are all potential sources of notional supplies considered?
  • Are all potential sources of income (asset sales, etc.) covered by VAT accounting system?
  • Is VAT captured at the correct tax point?
  • Is VAT correctly applied where appropriate?

As mentioned in the checklist there are various schemes which may be suitable for your business such as the flat rate scheme, annual accounting and cash accounting. We will be pleased to discuss the implications of these schemes with you and help you decide if they may be advantageous in your circumstances.