Services

Specialist VAT advice

Why do you need specialist VAT advice?

With the UK standard rate of VAT increased to 20% it is essential to be able to obtain clear, concise VAT advice. This is particularly relevant due to the harsher penalty regime adopted by HMRC where they will consider having taken VAT advice on complicated matters as a sign of taking ‘reasonable care’

My aim is to lead my clients through the maze of legislation, authority, decisions and opinion covering the application and recovery of VAT. I aim to provide a bespoke VAT consultancy service which will encompass all of the following key objectives:-

Every client will receive a bespoke service tailored to match and exceed their expectations.

VAT Planning

VAT planning before a transaction will not only avoid pitfalls and penalties, but can often identify VAT opportunities. I provide proactive advice on proposed transactions as well as on everyday problems such as liability of supply etc. I will also provide strong reactive support as necessary.

I can:

AT Audits

VAT audits will confirm the correct application of VAT on sources of income and thus minimise the potential risk of VAT penalties and interest. A VAT audit will offer advice on strategic change which will minimise the extent of VAT liabilities and cash flow. VAT savings can often arise with minimum changes to the business operation model and sometimes can remove the application of tax altogether, strengthening business competitiveness, benefitting your VAT position and engendering client goodwill.

VAT Dispute Resolution

Negotiating with HMRC on areas of VAT difficulty is to be preferred to instigating litigation via the Tax Tribunals and the Courts. However, litigation may be the only course available to resolve disputes with HMRC. Litigation should only be commenced after all avenues of discourse with HMRC have been exhausted.

Constantly changing legislation both in the UK and in the EU are not always considered by HMRC when applying a hierarchal tax policy which may not take account of current authorities in tax law.

Representation in the Tax Tribunal will be offered as part of my specialist VAT services. Access to Senior Counsel for opinions and further representation in appropriate cases can also be offered.

VAT Training

You need to ensure that key staff are aware of the application of VAT to your business. Specialist VAT Training will ensure that key staff become familiar with the application and accounting of VAT and so minimise the risk of error and avoid the incorrect addition of VAT on both income and expenditure.

VAT training sessions are both bespoke and relevant. Bespoke VAT training will be more relevant and cost effective than attendance at a non-specific VAT course which may be held at a venue and time which may not be the most convenient.

Land & property

This area of VAT is the most complex and where most high value errors and assessments occur. Consequently, any business within this sector can expect to be scrutinised by HMRC on a regular basis because of its perceived high risk.

HMRC often get decisions wrong and any assessment should be reviewed on the basis of the impact now and also for future business activity.

This area is so complex that HMRC often get it wrong. You should get any assessment reviewed regardless of the value because it may also affect how a business treats these matters in future. Hopwood VAT can provide this service at an affordable cost.

The liability of supplies in this area can be standard-rated (20%), reduced-rated (5%), zero-rated (0%), exempt from VAT and more frequently a mixture. It is vital to take advice in advance of any development. Too many times I have been asked after the event and have to “pick up the pieces” when affordable advice from a VAT consultant would have prevented it. Supplies involving listed buildings, charities and to disabled people can also affect the liability.

A business can affect the liability of the supplies involving commercial properties by making an “option to tax”. However, an option to tax can be subject to “disapplication” because of anti-avoidance legislation.

Remember VAT is a self-assessing tax and it is the responsibility of the business to get it right. The above shows the need for expert advice from a VAT consultant. I have a proven record of assisting businesses with these matters.

Fees

Initial Meeting

For all new clients, I offer a free no obligation initial consultation either by personal meeting or telephone conversation, after which I will produce a summary of the issues and provide an estimate of the cost of resolving them.

Professional Fees

I provide cost effective VAT solutions for all clients. Charges for my services can be tailored to suit all circumstances. Most work is charged at an agreed hourly rate. Work can be agreed on a fixed or contingency fee basis, providing greater certainty and cost control.

Data protection

To provide services for you, we need to handle personal information about you. This is how we will look after that information. When we ask you for personal information, we will:

ensure you know
why we need it protect it and make sure nobody has access to it who should not
ensure you know if you have a choice about giving us information
let you know if we need to share it with other organisations to give you better public services and if you can say no
make sure we don't keep it longer than necessary

Not for profit

Tim is a trustee for a number of not for profit entities. He is fully aware of the complexities that VAT can cause from a trustee point of view and also that of a VAT specialist.

You will face the same VAT management issues as any other organisation that starts to trade. A failure to recognise trading income as subject to VAT will result in VAT registration requirements being missed. VAT assessments raised in a charity from historic errors can cause major financial pressures and risk closure. In some instances, VAT registration can be a benefit to a charity.

VAT registration issues clearly are a concern, and this is highlighted by a continuing lack of clarity on the nature of the funding a charity may receive – that classic is it a grant or is it a contract for a service question?

Opportunities do exist as well, so it’s important to maximize access to the limited VAT reliefs available and keep up to speed with VAT changes in legislation.

Not for profit clients need to plan for any irrecoverable VAT to grant applications to ensure projects will be fully funded, especially when funding projects that relate to property enhancements or acquisitions.

Some large charities generate major streams of business income from their trading activities and therefore require close attention from the VAT management perspective, as often this income generation can be in areas where a VAT exemption can apply and result in blocked VAT recovery issues.