VAT do's and don'ts

Key actions to take and traps to avoid.

When it comes to VAT, Curnow & Co can advise businesses in the Cambridge area on some of the important steps to take – and the pitfalls to avoid. This article considers some important VAT Do’s and Don’ts.

  • DO keep a monthly record of your turnover - late registration can result in severe penalties
  • DO notify your local VAT office when major changes take place - changes must be notified within thirty days
  • DO retain records for the last six years - these could be demanded by law
  • DO charge VAT on supplies to your staff
  • DO charge VAT on any equipment or vehicles (except motor cars) that you sell or part-exchange
  • DO account for VAT on fuel used for private motoring using the appropriate flat rate valuation
  • DON'T claim the VAT paid on the purchase of a motor car - it is not recoverable except in some very special cases
  • DON'T claim the VAT paid on goods or services used for private purposes. Where there is an element of private use (e.g. telephone) an appropriate percentage should be claimed. Special arrangements apply to private use of petrol (see above)
  • DON'T claim the VAT paid on entertaining (except for reasonable, relevant costs of entertaining overseas customers)
  • DON'T forget to account for VAT on inter-company charges
  • DON'T charge VAT on the transfer of a business as a going concern (make sure contracts incorporate appropriate VAT provisions)

If you’re in the Cambridge area and would like to discuss VAT in more detail, please contact the team at Curnow & Co.

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01223 870879

Curnow & Co, 29 High Street, Harston, Cambridge, Cambridgeshire CB22 7PX.

Curnow & Co Limited Registered office address: Curnow & Co, 29 High Street, Harston, Cambridge, Cambridgeshire CB22 7PX. Incorporated on 25 February 2017. Company number 10639627.

About us

Curnow & Co are a firm of Chartered Certified Accountants based in Harston, Cambridge.

The company prides itself on delivering a friendly and professional service tailored to clients’ individual needs.

We provide a wide range of accounting, business and tax services, giving our clients peace of mind that their financial affairs are in safe hands.

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