It is very important to get the fundamental right within this area of your accounts due to the potential penalties that can now be imposed by HM Revenue and Customs. If an over claim for VAT is made the HM

Revenue and Customs can potentially charge you a penalty of up to 100% of the VAT over claimed.

The VAT returns and bookkeeping records will also form the basis of your accounts and so they should be completed as accurately as possible.

VAT doesn’t have to be confusing, there are schemes available to you to help with cash flow and compliance.