Commentary

V7.121 General approach to VAT planning

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.121 General approach to VAT planning

Part V7 Tax planning | Commentary

V7.121 General approach to VAT planning

Although much VAT planning must be tailored to the specific requirements of the business, there are a number of planning points which apply across the board. Most planning in this area falls into the categories of 'minimisation of risk' and 'ease of administration'. They include the following:

Compliance

It is clearly important to ensure that all legal requirements are complied with. If a taxpayer can demonstrate that he takes these requirements seriously, he is likely to receive less attention from HMRC; and in the event of an error, it may be a mitigating factor.

Record-keeping

Business records must be retained for six years, unless HMRC agrees otherwise (see V5.202).

Records should also be maintained of the following:

  1.  

    •     details of any assurance or other visits made by HMRC staff

  2.  

    •     copies of any decisions or rulings made by

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