Common corporation tax and VAT mistakes we can help you to avoid

Unfortunately, corporation tax and VAT are complex areas of taxation. Recent changes have only made these areas of taxation more complex. It is extremely easy to make calculation errors, to record information incorrectly, or to miss crucial HMRC deadlines. The result can be far-reaching, with mistakes in the filing, reporting, and payment of your tax liabilities resulting in financial penalties and unbalanced books.

At Arnold Hill & Co, we have decades of experience of preparing and submitting company tax and VAT returns. Combining unrivalled expertise with a commitment to detail, we can help you minimise the likelihood of making the most common corporation tax and VAT mistakes that could land your business in hot water.

Please note the following:

Corporation tax and VAT registration with HMRC.

New companies are expected to register for Corporation tax within three months of starting commercial activities.

VAT registration is required if you expect your VAT taxable turnover to be more than £85,000 in the next 30-day period or your business had a VAT taxable turnover of more than £85,000 over the last 12 months

It is therefore important that registration is not late to avoid late registration penalties and we can assist with both corporation tax and VAT legislation.

Submitting your Company Tax Return late.

Under the UK tax regime’s self-assessment regime, the Company Tax Return and supporting tax return reflects the tax calculation for the accounting period and must be submitted within 12 months of the end of the financial period to which it relates.

VAT returns are required to be submitted every 3 months (although there are other VAT submission regimes).

Arnold Hill & Co can assist in preparing and submitting these returns.

Misreporting income

Misreporting income, either accidentally or intentionally, bears significant consequences. Fines of up to 70 percent of the tax amount due are possible, with the most serious penalties reserved for deliberate misreporting. An HMRC investigation is a headache for everyone in the business, so ensuring your figures are completely accurate is essential. We can assist in this process.

Using the incorrect VAT scheme, at home or abroad

Applying the wrong VAT scheme is a common mistake, and the picture is even more confusing when selling abroad in different territories. Mistakes cannot simply be corrected in the next return but must be reported to HMRC as soon as the error is discovered and switching VAT schemes can only happen at the start of the next reporting period. When selling overseas, different rates of VAT apply in different countries, so there is a considerable volume of regulations to learn and understand to ensure your VAT return is correct.

Contact Arnold Hill & Co for professional tax advice

At Arnold Hill & Co, we help businesses negotiate the complex corporation tax and VAT pathways, providing up-to-date expert advice and tax management – helping them to avoid the common pitfalls that could lead to unnecessary penalties.

To find out more about our services, please get in touch today.


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