The importance of keeping good VAT records
It has never been more important to keep good VAT records, with HMRC vowing to scrutinise the tax affairs of those who have payments outstanding after 28 February.
Tax specialist Gabelle has been advising those who keep imperfect records to clean up their affairs.
“When it comes to VAT, this can be an expensive problem, as the business has no right to claim input VAT unless it holds a valid VAT invoice,” said VAT consultant Kevin Hall.
HMRC’s VAT Outstanding Return campaign is focused on businesses that have VAT returns outstanding.
The 50,000 businesses that have failed to submit VAT returns will have their tax affairs closely scrutinised by the Revenue from 28 February if they fail to voluntarily come forward.
However, one important element of submitting returns is keeping accurate records, which, Gabelle says, may also support input tax claims.
According to HMRC, records businesses should keep are: