VAT Health Check
Our VAT Health Check service is designed to be comprehensive. We do not just look for errors; we investigate transactions that may not have been fully accounted for and identify legitimate ways to reduce your business’s overall VAT liability.
Our experience working with HMRC can quickly identify and remedy any weaknesses in your accounting controls and systems.
Value Added Tax (VAT) is often cited as one of the most complex areas of the UK tax system. Even minor errors in accounting can lead to substantial penalties and interest charges from HM Revenue and Customs (HMRC).
At Keirstone, our extensive experience working with the tax authorities allows us to quickly identify and remedy weaknesses in your accounting controls and financial systems.
How a VAT Audit Protects Your Business
A proactive health check is the best defence against a formal HMRC investigation. Our specialists conduct a deep dive into your records to ensure every aspect of your VAT management is accurate. Our audit includes:
- Accounting Record Review: We sample check your records to identify manual entry errors or systemic flaws in your bookkeeping.
- Inspector-Led Testing: We apply the same sample tests used by VAT inspectors to find the common errors that often trigger further scrutiny.
- Statistical Return Analysis: We analyse your completed VAT Returns to identify trends or anomalies that could lead to an HMRC enquiry.
- Consistency Checks: We compare your VAT Returns against your annual accounts to ensure total alignment across your financial reporting.
- Sales Treatment Verification: We check the VAT treatment of your specific sales, ensuring you are applying the correct rates (standard, reduced, zero, or exempt).
- Scheme Optimisation: We consider whether you are making the best use of relevant VAT schemes, such as the Cash Accounting Scheme, Annual Accounting Scheme, or the Flat Rate Scheme.
- Procedural Application: We ensure you are correctly applying the complex rules of these schemes to avoid accidental non-compliance.
- Identifying Planning Opportunities: We look for ways to defer VAT payments or accelerate reclaims to improve your business cash flow.
Benefits of a VAT Health Check
Our VAT Health Check service will also investigate any transactions which have not been fully accounted for and identify any further ways of reducing your business’s overall VAT liability.
A VAT Health Check can:
- Review and sample check your accounting records for errors
- Sample test the most common errors that the VAT inspectors look for
- Statistically analyse your completed VAT Returns
- Sample check the completion of VAT returns
- Compare your VAT returns against your annual accounts
- Check the VAT treatment of your sales
- Consider whether you are making the best use of relevant VAT schemes
- Ensure you are correctly applying the rules of VAT schemes
- Identify VAT planning opportunities.
A proactive approach to VAT planning
Taking a proactive approach to VAT planning, once we assess your current position, our specialists will create a tailored plan addressing any issues identified in your procedures and processes. This ensures that everyone in your business is aware of the VAT implications of your trading, expenditure, and capital acquisition activities.
A Strategic and Proactive Approach to VAT Planning
A VAT Health Check is most effective when it leads to a long-term strategy. Once we have assessed your current position, our VAT specialists will create a tailored plan to address any issues identified in your procedures and processes.
This ensures that every member of your team is aware of the VAT implications regarding your daily trading, business expenditure, and capital acquisitions. By fostering a culture of compliance and awareness, we help you navigate the complexities of VAT with total confidence.
Whether you are a startup scaling quickly or an established organisation with international trade complexities, our team provides the clarity you need. We utilise the latest accounting technology, including Xero, to provide real-time insights that keep your business ahead of regulatory changes.
Are you concerned about the accuracy of your VAT records or looking to optimise your tax position?
Contact Keirstone today to book your VAT Health Check and ensure your business is fully protected.
Why choose Keirstone Accountants?
Start Up Specialists
Our services are crafted with the unique needs of startups and scaleups in mind. From day one to IPO, we’re here for every step of your financial journey.
Risk Free Scaling
Start with what you need and expand as you grow. Our scalable bookkeeping solutions provide real-time insights for smooth, sustainable growth.
Transparent Pricing
No hidden fees or surprise bills. Our clear, upfront pricing means you always know what you’re paying for, giving you confidence and control over your financial planning.
Tech-Forward
As Xero Partners, we’ll help you to utilise the latest in accounting tech for seamless integration and real-time insights, helping you stay ahead with minimal effort.
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Fixed Pricing
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