Submitting VAT returns can be challenging, but avoiding common pitfalls can save you time and money. Here’s what to watch out for:

• Incorrect VAT Registration:

  Businesses must register for VAT if their taxable turnover exceeds the threshold (currently £85,000). Failing to register on time can result in penalties.

• Claiming VAT on Non-Eligible Expenses:

  Not all business expenses qualify for VAT reclaim. For example, client entertainment and certain car-related costs may not be reclaimable

• Late Filing and Payments:

  Missing VAT deadlines leads to surcharges. Set reminders to ensure returns are filed and payments made promptly.

• Not Using the VAT MTD System:

  Making Tax Digital (MTD) for VAT is mandatory for most UK businesses. Ensure your accounting software complies with MTD requirements.

• Neglecting Adjustments:

  Mistakes from previous VAT periods or adjustments for bad debts should be accurately reflected in your return to avoid discrepancies.

Tip: Outsource your VAT filing to professionals who understand the intricacies of the UK VAT system. MAC Financial Solutions Ltd is here to help you stay on top of your obligations.