If you dropped your spare change, would you pick it up? Of course you would. Our money is our money and once we’ve earned it, it’s something that we protect carefully. So why do so many financially-savvy people not apply the same mentality to their company’s finances? £20 billion pounds of unclaimed VAT is being left on the table every year*.
Despite more than 40 years of getting used to calculating, paying and reclaiming VAT, all businesses, big or small, still struggle to adhere to HMRC guidelines, with 75% of senior finance decision makers saying they wish they knew more about employee expenses and VAT reclaim^.
Each country has different rules and processes in place, making it virtually impossible to find one person in your business that has all the knowledge required for complete and accurate VAT reclaim. In addition, language variations, changes in time zones and currency issues add further complexity. For these reasons, most companies assume that there is probably not much money to reclaim, and it would cost them too much to employ the team required to reclaim the VAT.
With the best will in the world, if organisations are not effectively managing their employee expenses, they risk falling foul of HMRC requirements. You may have a robust expenses policy in place and a seemingly effective process to tackle that shoebox of receipts. But is that enough and is it really working for you?
With support from SAP Concur, it doesn’t have to be this way. Perhaps unsurprisingly, automation can greatly reduce the effort and the complexity of reclaiming VAT whilst maximising control in managing company spend. Combined together, we can help any company to identify reclaimable VAT – the money you’re entitled to – and put that back onto your company’s bottom-line.
First, we offer an expense audit solution to check for fraud and non-compliance. Secondly, we work with tax specialists to help you comply with VAT regulations. Thirdly, we give you visibility and control over all aspects of your travel, expense and invoice spending. Crucially, we see VAT reclaim as an opportunity to reduce business costs and put money back in your pocket.
Tim will join Athe Accounting Excellence panel on Thursday, 15 March at 11am to answer your questions on expense management, compliance and VAT reclaim. Click here to register for this free online session.
*VAT IT presentation at Concur Fusion, November 2017.
^Connecting the dots on travel, expense and invoice spend report. Vanson Bourne, September 2017.