VAT accounts for over a fifth of HMRC’s total tax take
07 Feb 2018
Data published by HM Revenue & Customs (HMRC) reveals that VAT receipts add up to £124 billion for the Revenue, a 16 per cent rise when compared to figures recorded during the 2008 recession.
Industry experts say the drive on VAT has led to more SMEs having to borrow money to pay their bills as they are unable to collect from late paying customers.
Recent research shows that construction sector businesses, for example, are waiting an average of 69 days to be paid by their customers, an increase of 8 per cent year-on-year.
These late payments severely impact cashflow, often leaving businesses struggling to meet their tax obligations.
And Brexit could cause further problems with VAT, with more than 130,000 companies facing upfront VAT costs under new government legislation that is being debated.
The new changes outlined in the Taxation (Cross-border trade) Bill would see companies pay a levy on all goods imported from the European Union once Britain leaves the EU.
The British Retail Consortium (BRC) warns the government that such changes to VAT could create ‘additional cashflow burdens’ for UK firms.
At Beavis Morgan, our tax experts will be readily available to guide you through the tax maze and help you with bespoke solutions to ensure that you and your business are as tax efficient as possible.
Whether you require assistance in meeting your VAT obligations, or you are looking to save on income tax, capital gains tax, inheritance tax, or all three, there are various legitimate tax planning opportunities available to you.