Maintain complete vat books for hassle free accounting

After you have converted into a vat registered trader in the UK or even in any other country that follows vat then you should maintain complete vat books for trouble free accounting. These books of accounts need to record and display each vat transaction in greater detail, and may be of great help if you're put through a vat audit.

In the United Kingdom you'll have to opt for vat registration upon completing 70,000 sterling pounds of taxable sales in the last twelve months of your business, although you can still do so before reaching that vat threshold limit. After you have turned into a vat registered trader in the United Kingdom then you'll need to obey all applicable vat rules framed by HM Revenue and Customs department or hmrc vat department. Although there is no set way of maintaining books of accounts specifically for vat, you will still need to ensure you store all specifics of vat paid and collected including invoice numbers, dates, vat rates, vat amounts, names and addresses of your respective dealings with various parties even though these were conducted abroad, etc.

These records will also need to be summarized whenever you file regular vat returns on a yearly, quarterly or monthly basis, as decided by hmrc vat department. Your vat invoice too will specifically have to display your vat number, vat rate for every service or product, and also the total vat amount collected against that sales invoice vatnumbers.com. All this data should also be mentioned in the sales books whilst all purchase invoices will have to be summarized in the purchase books. In addition, maintaining bank and cash books is required for vat registered traders.

Maintaining such vat books on an up-to-date basis is very important since vat officers at hmrc might compare your vat returns or even your vat refunds and may decide to conduct a vat audit of your business. In such a case, vat officers might visit your business premises and may want to look at all of your books of accounts to verify certain doubts lingering in their minds. They may cross check vat invoices with your sales books or request certain confirmations on specific vat transactions only to confirm if they were indeed genuine ones. If all of your books of accounts related to vat are typically in order then that would create a favourable impression with those vat officers and also prevent any penalties from striking down your business plus your reputation.

In case you have any problems to understand what exactly is vat then you certainly should go looking for the expertise of a good vat agent that can help you to create and keep all books of accounts associated with vat in a clear and methodical manner read more. You need to maintain books of accounts related to vat for a period of 6 years. Various vat schemes require different types of books and your vat agent would be able to guide you about the right format for your business based on your scheme and vat classifications of the services and goods.

Maintaining proper books of accounts will help you to conduct your small business in a clear and seamless manner. In case you too have adopted vat in the United Kingdom then you will definitely have to maintain complete vat books for trouble free accounting and auditing.