Tax can seem a bit one-sided, stacked in favour of taxation authorities who are adept are using the law, which they write, to their advantage to take as much tax as possible from taxpayers - such is their statutory duty.
At VATangles, we believe in restoring the balance by using our extensive knowledge of tax law as well as our experience of working with HMRC to help our clients minimise the payable amount of VAT. We work with charities, education, agriculture and healthcare organisations to provide a VAT planning service, where we use the law to the advantage of our clients, maximising their tax efficiencies.
Are you using the law to your advantage?
Working within the law utilises legitimate measures to inform VAT planning; in-depth knowledge of the law enables you to pay as little VAT as late as possible, whilst reclaiming as much VAT as early as possible.
Using the law in the right way is quite different from trying to avoid tax altogether. Quite correctly, tax evasion is a criminal offence, and those guilty of it face heavy sentences.
Additionally, tax avoidance schemes, although legal, operate based on escaping legitimate VAT liabilities and rely on HMRC being unaware of what is going. Tax avoidance is never a sensible nor practical approach to VAT planning, with anti-avoidance legislation making it almost impossible for these schemes to be effective.
At VATangles, we strongly advocate against VAT avoidance schemes, and in our experience, we’ve found that working with HMRC, and within the law, is the most effective way to approach VAT planning for our clients and obtain VAT savings.
We liaise with HMRC at all steps of the VAT planning process, and we have confidence that our VAT planning works. If HMRC wishes to challenge it, then this is best done at the start of the planning approach.
So, how does VAT planning work?
We take a proactive and ethical approach to VAT planning based on our experience and suggest workable solutions and angles you may not have considered.
When an organisation asks us whether or not they can do something, there are usually four possible answers:
Yes, you can – this is a great idea, and in our experience, this is likely to work.
No, you can’t – you’ll go to jail! Going to jail is rare, but we have seen it.
No, you can’t do that, but you could do this - we provide an alternative solution, which is workable; or
Yes, you could do that – but would this would even better.
Providing ‘better solutions’ is our specialist area.
The most valuable asset in our VAT planning toolkit is our extensive knowledge of what has worked before, either using our own experience or from the results of case law. At VATangles, we have experience of, and success in, applying legitimate processes which result in real VAT savings for our clients.
We frequently apply particular aspects of statute or case law to the circumstances of an organisation, often changing VAT outcomes and liabilities. We explore opportunities with our clients through matters including partial exemption methods, retail schemes, VAT grouping or cash flow planning, which can be very beneficial.
Our experience has shown us that there are unexplored VAT planning opportunities for most organisations.
MEET THE EXPERTS
Technical VAT Director
James joined VATangles in 2013 after working for a leading car rental business. He specialises in technical VAT services and is involved in the development of proactive VAT planning to organisations of all sizes.
Noel is a highly experienced and innovative consultant who started his career working for HMRC. He has been involved in proactive VAT planning since 1987, with in-depth knowledge of what works and what doesn't.
Andy has worked in the tax industry for over 25 years, mainly specialising in the not-for-profit sector.
Andy's experience in developing effective VAT planning solutions helps to crystalise planning ideas.
VAT PLANNING CASE STUDY
In the last recession, we were asked by a firm of accountants for ideas for their client to aid with practical VAT planning.
Their client employed 20 people and undertook cleaning contracts for businesses in the City of London. The recession hurt its operations, and it was in financial trouble.
We restructured the documentation between the cleaning company and its clients. The effect of this was to defer the requirement to account for six months of VAT, effectively, and indefinitely.
This saving, along with other measures, was sufficient to keep the company afloat and the company is still trading today.
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