Multi-award-winning accountancy firm, Salhan Accountants, has said that recent research suggests a lack of understanding about VAT amongst SMEs is leading to errors and potential fines.
The firm has pointed out a new study by online accounting specialist QuickBooks, which showed that 51 per cent of small business owners have made mistakes when completing their VAT return.
What’s more, according to the study of 500 business owners, only a quarter felt confident they had filed their return correctly.
The new research comes as thousands of businesses across the Midlands begin to submit their first digital quarterly VAT returns, as part of the Government’s Making Tax Digital (MTD) initiative.
This new system requires VAT-registered businesses to use the latest online accounting software to record and report their VAT affairs to HM Revenue & Customs (HMRC).
Dr Anjulika Salhan, Director of Birmingham and Droitwich-based Salhan Accountants, said: “The UK’s VAT regime is particularly complex, with different rates of tax depending on what service or product is supplied, as well as different regimes for various sectors and business types.
“This can make completing a VAT return a particularly onerous task, which has been made more confusing by the introduction of MTD.
“With large penalties for failing to comply with the rules of VAT and the ever-present danger of errors, it really does make sense to seek out the help of an expert when it comes to VAT matters.”
To find out more about Salhan Accountants VAT services, please visit salhanaccountants.co.uk