Maintain complete vat books for trouble free accounting

After you have turned into a vat registered trader in the United Kingdom or even in any other country that follows vat you then should maintain complete vat books for hassle free accounting. These books of accounts have to record and display each vat transaction in 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, even though you could do this before reaching that vat threshold limit. After you have become a vat registered trader in the United Kingdom then you’ll have 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 still have to be sure you store all details of vat paid and collected including invoice numbers, dates, vat rates, vat amounts, names and addresses of your respective dealings with assorted parties even though they were conducted in other countries, etc.

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

Maintaining such vat books on an up-to-date basis is extremely important since vat officers at hmrc might compare your vat returns or even your vat refunds and may choose to conduct a vat audit of your business. In such a case, vat officers might visit your business premises and may want to go over all of your books of accounts to confirm certain doubts lingering in their minds. They might cross check vat invoices with your sales books or ask for certain confirmations on specific vat transactions simply to confirm if they were indeed genuine ones. If all of your books of accounts pertaining to vat are 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 in understanding what exactly is vat then you certainly should go in for the services of a good vat agent that can help you to create and maintain all books of accounts related to vat in a clear and methodical manner. You will 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 could guide you about the right format for your business depending on your scheme and vat classifications of the goods and services.

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