When you run a business, you need to make sure that you are paying your VAT on time. This can be quite a large figure and so it can be tricky to pay on time if you don’t have a lot of spare cash in your business. Many business owners find themselves in trouble when they cannot pay their VAT and they just ignore it. This is not the best course of action to take, however.
Here, we are going to look at some of the things that you should do when you are having problems with paying your VAT. This will include everything from being proactive about paying your VAT and looking for other options to help you pay. Keep reading to hear some of our top tips.
The first tip that we have for those who think they might have problems with their VAT is to use the right kind of software. We are required to make our VAT digital in 2020 and so there are many companies who have created digital VAT software. If you can use this software, you can ensure that you are paying the right amount of VAT. This will allow you to be proactive and avoid any issues in the future.
Don’t Avoid It
The HMRC do not appreciate any business owners who avoid paying their VAT and they will likely fine you if you are not complying with regulations. This is why you should make sure that you address the problem and never avoid it. Make sure to find the time to give them a call and let them know about the issues that you are facing. They might be able to offer some kind of assistance that will allow you to get back on track with paying your VAT.
Consider Invoice Financing
If you are having issues with paying your VAT return due to a lack of payments from customers then you might want to look at some of your other options. Many business owners are able to get the cash to pay the HRMC in the short-term from services such as invoice factoring or invoice financing. This way, you can pay the HRMC and avoid the fine that you might get for a late payment. Take a look online to find out more about what invoice factoring involves.
File Your VAT Return
Even if you are having problems with paying your VAT return, you need to make sure that you are still filing it. You could find that you get a higher punishment if you don’t file your return and this can cause even more serious issues when it comes to sorting out the problem. Filing your VAT return isn’t as tricky as you might think but you can still get some guidance on how you can do this online. If you have an accountant, they might be able to help you file your VAT return even when you can’t afford to pay it.
No one wants to have to pay VAT on their business but this is something which we all have to deal with. It is important that you are being as proactive as possible and filing your VAT return as soon as you can. Try to use specialist software to make your tax digital and this should help you out along the way.
Follow all of the advice that we have given you in this article and soon you’ll be back on track with your VAT.
This post has been sponsored and written by Emily Roberts. PlanetCompliance only publishes sponsored content from companies whose products and services we think our audience will find valuable or interesting. For additional information about we handle partnerships and content production, please have a look at the PlanetCompliance Disclosure Policy, which you can find here.