How to avoid penalties and fines from missing VAT deadlines
When you first start out in your business endeavor it can be easy to forget the importance of staying on top of your taxation matters – not solely for your payroll and personal income tax, but also for your ever important VAT deadlines.
Missing these comes with harsh penalties and fines of up to 15% of the VAT you owe, and is a problem that plagues small business owners. We have compiled a brief and handy list that will help you avoid penalties as a result of missing your VAT deadlines.
- Set a reminder – Set yourself a number of reminders when you first register your business with the HMRC in order to avoid forgetting these dates when you get swamped with work.
- Hire an accountant – Undoubtedly the most efficient and sensible solution, hiring a skilled professional accountant to oversee your business’s taxation matters will ensure that you never have to worry about being late or owing penalty fines.
- Keep organised – It is imperative that you keep all records pertaining to your business organised and ready for assessment at any time. Having all applicable paperwork in an organised system will go a long way in keeping you from missing important dates and deadlines.
- Ask for help when it is needed – If you feel like you are starting to fall behind or get overwhelmed with your VAT, reach out for help from an HMRC representative or from your valued accountant.
- Get good software in place! – Using FreeAgent will allow you to keep an eye on your latest VAT liability and also allow you to make the submission from the software.
Ensuring that you never miss one of these important deadlines is key, not only for your good standing with the HMRC, but also for your peace of mind and overall bottom line.
If you would like to see how FreeAgent can automate most of your VAT administration work get in touch!
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