In these challenging times, it is more important than ever to ensure that costs are managed. One cost which is often overlooked is VAT.
VAT can be an absolute cost, through missing out on VAT recovery, missing out on VAT reliefs, or not being able to recover undercharged VAT from your customers; VAT can be a cashflow cost, through failing to reclaim VAT at the earliest opportunity, declaring output tax earlier than is necessary or through having an inappropriate VAT "stagger".
In addition, there can be a significant cost arising from HMRC imposing penalties where a business gets their VAT accounting wrong, resulting in them under declaring or over claiming VAT. Even where there is no deliberate act or concealment, VAT penalties normally start at 30% of the VAT under declared or over claimed, which can add significantly to the cost of making a VAT error.
Our services are designed to allow you to avoid the pitfalls, identify VAT efficiencies and minimise the risk of penalties.
Our wide ranging experience over a number of years allows you to benefit from our services whether you are in the Public or Private sectors.
In addition to these service areas, which are relevant to both the Public and Private sectors, we have an unrivalled level of experience and expertise in relation to Culture, Sport and Leisure Trusts.
Prior to forming Adrian Wood VAT Consultancy Ltd, Adrian developed an outstanding expertise in relation to the reorganisation of council run services through the use of alternative delivery vehicles, with the bulk of these reorganisations relating to the provision of culture, sport and leisure services. For example, Adrian has more experience in respect of Scottish based Culture, Sport and Leisure Trust projects than any other single individual and whilst with KPMG, Adrian was their acknowledged expert and was a national resource for colleagues throughout the UK. Importantly, in 2004, Adrian successfully led a landmark challenge through the VAT and Duties Tribunal, representing three Local Authorities and their newly formed Trusts. Following this success, HMRC revised their policy in relation to the VAT treatment of Local Authority funding, and many Trusts and Local Authorities have enjoyed the benefits of this landmark case.
In addition, Adrian was involved in providing ongoing VAT advice to a number of Culture, Sport and Leisure Trusts.
Our services to Culture, Sport and Leisure Trusts include: VAT Helpline services; reviewing Partial Exemption methods; advice in relation to VAT efficient procurement; VAT impact analysis and advice relating to expansions of the Trust’s responsibilities; and VAT and penalty reviews.
Our services include:
We are finding that due to reductions in staffing, inexperienced staff taking on new roles, plus HMRC reducing the frequency of their VAT audits, businesses are carrying a greater VAT and penalty risk than ever before.
In order to counter the above financial risk, we undertake in-depth reviews at your premises, through one to one interviews, where we will identify risk and opportunity areas, and recommend actions to address these. The output from our reviews is an easy to understand exception report, with actions prioritised. Such reviews can assist you in demonstrating "reasonable care" to HMRC, thereby reducing the risk of penalties being imposed.
Where we identify any areas requiring disclosure to HMRC, we will assist in this process.
If you ever have reason to contact HMRC Enquiries, you would benefit from our assistance. We can offer you prompt, expert advice which best suits you, whilst working within the VAT rules.
We offer a range of Helpline packages. Whether you are a business who has the need for occasional VAT advice, or a Legal or Accountancy practice which wants to have an expert VAT resource at your disposal, we have a service to suit you. Where we work with a Legal or Accountancy practice, we will never approach any of your clients after working with them.
If you are unfortunate and have been assessed by HMRC, we can help. From experience, it is often the case that HMRC have misinterpreted VAT law or even their own guidance, plus they often fall foul of the relevant time limits.
In the event that it is not possible to reduce the assessed VAT, it is normally possible to have the penalty reduced significantly or have it suspended, meaning that there is no penalty cost to the business.
Those in sectors such as Education, Property Development (Residential and Commercial), Healthcare, Eyecare, and Charity are all likely to have apportionment methods in place to calculate the level of VAT which can be reclaimed. It is often the case that such methods have not adequately catered for changes in the business, changes in accepted methodologies, or were not beneficial for the business from the outset. We offer a review service where we will assess the appropriateness of the current method, suggest changes and assist in negotiations with HMRC to agree an alternative, more beneficial, method.
Through our established network, we are able to call upon or introduce you to other highly qualified and experienced professional firms where you have a need for advice in relation to direct tax or employment tax.
Adrian Wood VAT Consultancy Ltd provides expert advice in relation to a range of areas and business types, both in the Public and the Private sectors.
