As a VAT registered business owner, you’ll know that VAT can be incredibly complicated. Compiling your VAT return, keeping it accurate, and submitting your return online are just some of the responsibilities that make running a business – and keeping it VAT-compliant – inherently difficult.
Understanding some of the most common VAT related problems you might face as a business owner in advance of completing your return, can make finding and implementing the best solution that much easier. This in turn will place you in a stronger financial position and help you focus more of your precious time on business growth (rather than pouring over VAT returns and those headache-inducing submissions).
So, How Can I Make VAT Returns Easier?
To make things easier more businesses than ever are turning to easy to use VAT software to not only help them comply with their Making Tax Digital obligations but also manage their submissions, choose the right rate and even handle VAT transactions in a post-Brexit world.
In this post, we’ll explore the most common VAT submission problems and why investing in VAT software can give you the confidence you need to avoid potential problems in advance.
Time Consuming
A long day at the office, followed by hours pouring over your VAT return, can leave other areas of your business feeling neglected and increase the chance of you making a mistake. To overcome this, VAT software gives users a snapshot of their current financial position, helping business owners keep on top of their obligations and how much they owe in the current tax year. VAT software can streamline the entire process, essentially taking the time and hassle out of your returns and swapping those hours spent at your laptop with just a couple of clicks on an easy-to-use digital platform.
Human Error
As mentioned previously, most business owners are familiar with the potential complexities of VAT submissions. The intricacies of these calculations combined with a limited time frame and pressure to ensure their accuracy can leave many business owners susceptible to mistakes.
The impact of calculation errors, incorrect VAT reclaims or failures to record the VAT on certain sales can result in hefty penalties and even intrusive VAT enquiries from HMRC. However, when business owners utilise VAT software to help them manage their submissions, they’ll be alerted to when VAT should be applied, have their calculations done for them and ensure that they’re applying the right rate from the outset.
Late Submissions
Your VAT return should be submitted every three months, but when you run a business, three months can go by in a flash and before you know it, you’re left scrambling to submit an accurate return on time. Late submissions can also lead to penalties and additional stress. However, investing in VAT software can help business owners keep on track with their submissions, with helpful reminders that keep your VAT submission at the forefront of your mind.
