Call 020 7794 5757 - Email info@numerallp.com

VAT do's and don'ts

Key actions to take and traps to avoid.

When it comes to VAT, Numera can advise businesses in the London 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 London area and would like to discuss VAT in more detail, please contact the team at Numera.

Newsletter sign-up

Why not register to receive our Monthly Newswire?

Once a month we'll send you an email packed full of essential business news and handy tax tips to help save you money.

Sign-up today

Try a site search Tax return, dividends, pension, autumn statement...

Company details

020 7794 5757

Numera, 4th Floor Charles House, 108-110 Finchley Road, London NW3 5JJ

Numera is a trading name of Numera Partners LLP | Company Registration No. OC365787 | Place of Registration: England & Wales | Registered to carry on audit work in the UK by the Institute of Chartered Accountants in England and Wales.

About us

Numera is a newly established forward-thinking firm of chartered accountants, with over 25 years in experience of audit, accountancy, taxation and business advisory services.

We work with clients in a large variety of industries and sectors; from sole traders to multi-million pound turnover organisations. We aim to create and maintain a close relationship with our clients. By being so involved, we are able to identify opportunities for our clients as well as possible risks that our clients may be faced with.

© 2022 Numera. All rights reserved. We use cookies on this website, you can find more information about cookies here.