At Huddart Associates, we help simplify VAT and tax compliance. We support businesses across Manchester, Greater Manchester, Lancashire and the North West.
As Chartered Accountants and business advisors, we understand the pressure VAT obligations can create. Many owner-managed businesses already juggle daily operations. Adding complex and changing tax rules makes it even harder.
Understanding the VAT dos and don’ts is essential for staying compliant and avoiding unnecessary penalties. This guide outlines practical steps and common pitfalls to help you navigate VAT with confidence.
VAT Dos
- Do keep a monthly record of your turnover
If you’re not yet VAT registered, tracking turnover is essential. Late registration can trigger fines and interest. Our compliance services monitor your thresholds as part of a fully managed outsourced VAT service.
- Do notify HMRC of major business changes
Changes to your trading name, structure, or address must be reported within 30 days. Through our tax compliance and VAT processing solutions, we help you stay on top of deadlines and obligations.
- Do retain VAT records for at least six years
HMRC can demand access to these records at any time. Our outsourced VAT account support keeps your financial records compliant and secure. We store everything digitally, in full alignment with Tax Digital (MTD) requirements.
- Do obtain and store valid VAT invoices
Only valid invoices allow you to reclaim input VAT. We handle document checks and systemise efficient VAT data capture, forming a core part of your outsourced VAT reporting setup.
- Do charge VAT on supplies made to employees
Whether it’s discounted goods or perks, correct VAT treatment is key. We handle this seamlessly as part of your VAT compliance outsourcing plan.
- Do account for VAT on business assets and vehicles (excluding most cars)
Selling or part-exchanging business assets often requires output VAT to be charged. Our outsourced VAT service ensures proper treatment and accurate reporting.
- Do apply VAT fuel scale charges for private use
If company fuel is used for personal driving, it must be declared. We automate this calculation to ensure accuracy and compliance.
VAT Don’ts
- Don’t claim VAT on most car purchases
VAT is generally not recoverable unless the vehicle is used solely for business. We provide guidance to help avoid non-compliant claims in your tax processes.
- Don’t claim VAT on private-use goods or services
Where mixed use applies – such as phones or broadband – only business-related VAT can be reclaimed. We help manage the split accurately within your VAT processing framework.
- Don’t reclaim VAT on client entertainment
Most entertainment VAT is blocked unless it relates to overseas clients or staff incentives. We ensure your tax compliance remains accurate and defensible.
- Don’t forget inter-company VAT
Inter-company charges must still be VAT accounted for, especially where separate VAT registrations exist. This is a common area we manage within outsourced VAT accounts.
- Don’t charge VAT on business sales that qualify as a TOGC
A Transfer of a Going Concern may be exempt from VAT if specific conditions are met. Our compliance services include contract reviews to ensure accurate tax treatment.
Whether you’re managing VAT in-house or considering outsourcing, keeping the VAT dos and don’ts in mind ensures your business stays compliant, efficient and audit-ready.
Why outsource your VAT compliance to Huddart Associates?
Outsourcing VAT management does more than save time. It helps improve accuracy, reduce compliance risks, and gives you expert support – without the cost of an in-house team.
At Huddart Associates, we tailor our outsourced VAT services to support every stage of your VAT journey. This includes registration, VAT returns and audit preparation.
By trusting us to manage VAT, your business benefits from:
- Accurate and timely VAT reporting
- Seamless alignment with Tax Digital (MTD) compliance
- Clear guidance on complex tax processes
- Full support with VAT scheme selection and sector-specific advice
- Significant potential to reduce costs through efficiency and automation
We integrate our services into your existing operations and offer cloud-based tools for efficient VAT tracking and filing. Our goal is to keep you compliant, reduce administrative overhead and empower your business to grow with confidence.
We also manage payroll, accounts and business advisory as part of our broader compliance services. This creates a unified financial support system designed around your specific needs. We also provide full support with VAT registration, returns and advice through our dedicated payroll and VAT services.
Get in touch with Huddart Associates
If you’re ready to streamline your VAT obligations and partner with a trusted team of experts, our VAT outsourcing team is ready to help.
Call us on 0161 703 8353 or email us at hello@jeffreyahuddart.co.uk.
Let Huddart Associates help you reduce costs, manage VAT and stay ahead with professional, reliable tax compliance support.
