The following article was printed in the most recent copy of the FSB's The Voice.
"Over a third of smaller firms are potentially losing out financially by failing to claim back the VAT they are entitled to, according to research carried out on behalf of Sage.
The research found that many owner managers do not understand the tax rules relating to reclaiming of VAT and over half of those surveyed estimated that this lack of knowledge could be losing their business more than £500 per year because they do not know which items they can reclaim VAT on.
Lee Perkins, Managing Director of Sage's Small Business Unit, said: "Businesses that aren't claiming back the VAT they are entitled to are really putting themselves at a competitive disadvantage. Despite being around for 40 years, the ever-changing nature of VAT has put many business owners off from digging into VAT and fully understanding what can be refunded.""
VAT can be complicated but a bookkeeper who has experience of working with many types of business will have more experience of VAT and will generally know what can be claimed and what can't. We ensure that we claim as much VAT as is allowable for our clients - receipts permitting of course!