The transition to VAT registration is a bit like adolescence. How does VAT Impact a business? Once you are through it everything is fine but the act of registration can be a bit fraught. But then your business is “all growed up” and you can put the frustrations and angst behind you. It may have seemed like a big thing at the time but now there are other more important issues.
So, if you are approaching crunch time with your vat, how does it impact your business? VAT is complex. Last week we looked at the process of registration. In today’s Sound Bite we are looking at the affect on the business and some of the decisions you need to make as you approach the VAT threshold.
Is this where you are right now?
Get in touch as there are lots of opportunities to be had and traps to avoid. So you need to plan ahead if you want to get the best results. Before we go there, here is a story that caught my eye
Japanese train departs 20 seconds early.
Japan has one of the world’s most reliable railways. A rail company in Japan has apologised after one of its trains departed 20 seconds early. The management on the Tsukuba Express line between Tokyo and the city of Tsukuba say they “sincerely apologise for the inconvenience” caused.
In the UK. Ten minutes late is still on time.
Train punctuality in the UK is defined by the Public Performance Measure the PPM. Trains are considered to be on time if they are between 5 and 10 minutes after the scheduled departure. Between October 15th and November 11th this year 83.9 of UK trains met the PPM.
I guess they see this differently in Japan. In a statement, the company said the train had been scheduled to leave at 9:44:40 local time but left at 9:44:20. According to the company statement, the mistake happened because staff had not checked the timetable.
The crew did not sufficiently check the departure time and performed the departure operation.
I wonder what they do about leaves on the line in Japan? I also wonder if anyone on the Japanese train noticed the slip in the schedule?
It is just as easy to make little slips with your VAT as well.
How does VAT Impact a business
This story appealed to me because it reminds me of all the myriad of little rules for VAT that we are all expected to remember. Miss one and you could easily end up with penalties, and an apology will not help you very much. VAT was introduced into the UK on 1 April 1973, ie all fools day. That always struck me as very appropriate.
In today’s Sound Bite we are looking at the impact of vat registration on your business. Will it increase or reduce profits. There are a lot of factors that can affect this, and I have tried to cover the main ones.
As ever, any thoughts or questions on VAT or other aspects of tax planning, please call or email.
Call us on 0800 180 4401 or email firstname.lastname@example.org
Slaying your tax dragons and making life less taxing!
The Long Partnership