The price of a VAT concession | AccountingWEB

The price of a VAT concession

Can any users out there confirm whether this is hearsay or fact?  I've heard that hassling HMRC means they are more likely to hassle you, eg ask for a VAT concession and get a VAT inspection.

The above is being used as a reason to perpetuate or implement inefficient and expensive processes that could be subject to concessions.  Here are two current examples where a VAT concession would be helpful.

1. Personal calls on corporate mobiles.  Policy is that employees must reimburse monthly in strict application of VAT law, meaning some people pay less than £1.  A concession to allow amounts to accumulate to say £10 before making a reimbursement seems reasonable to save time of staff making the payment and staff processing the payment, not to mention bank charges for processing many small value cheques.

2. Additional charge for payment by credit card.  Our various systems do not necessarily identify the VAT rate of the principal supply, and to put this in place would be a costly IT project and the solution may still require some manual intervention.  A concession to hand over VAT on a proportion of the charges (based on auditable sample data) would avoid a costly and probably imperfect solution.

Thanks in advance for any advice.

There is 1 comment. Login or register to view it.

VAT Concessions

leshoward |
leshoward's picture