MOST businesses view VAT compliance as a necessary evil – something that has to be done, accurately and on time. However, with a little planning, there are ways of squeezing value out of the process.

At Baker Tilly, we have collated over 50 VAT ideas that could release a cash-flow benefit or real savings, and in our experience most businesses will have something to gain.

For example: The 14- day invoicing rule – if you raise an invoice within 14 days of making a supply then you can defer accounting for VAT until the invoice date. This is particularly valuable at the VAT period end because it could defer the need to pay VAT to HMRC for a full quarter.

A request for payment is not an invoice and so by issuing this document you defer the date at which you need to account for VAT to HMRC.

Because of accounting processes, many businesses delay posting VAT that could be recovered, thereby causing the VAT expense to fall into a later period. Accruing for VAT on expenses can generate a cash-flow boost.

If you consider that your business might benefit from some VAT planning, then please contact Duncan Stocks, VAT Partner, on 0118 955 4185 or email and he will be happy to discuss the options with you.