VAT Records and Making Tax Digital: A Practical Guide for Coventry Businesses
VAT records and Making Tax Digital for Coventry businesses
A reliable VAT return starts with reliable bookkeeping. VAT affects both sales and purchases, and small errors in transaction coding or missing invoices can change the amount reported to HMRC. This is why VAT should be treated as an ongoing record-keeping process rather than a calculation done only at the filing deadline.
What records should a VAT-registered business keep?
HMRC expects VAT-registered businesses to keep records of relevant sales and purchases, invoices issued and received, and other information needed to support the VAT return. Current official guidance is available here: GOV.UK – Keeping VAT records.
Making Tax Digital for VAT
Making Tax Digital means certain VAT records must be kept digitally and VAT return information must be submitted using compatible software, unless an exemption applies. HMRC’s guidance explains which records need to be kept digitally and how digital links work between software products.
Where VAT errors often start
Incorrect VAT codes applied to purchases or sales
Missing supplier invoices
Duplicate transactions
Unreconciled bank entries
Using the wrong VAT treatment for a transaction
Manual transfers between systems where a digital link is required
Why bookkeeping matters
When bookkeeping is maintained regularly, VAT can be reviewed throughout the period. This makes it easier to identify missing information before the return is prepared and gives the business a clearer view of the VAT liability before the payment deadline.
InChart Accounting Limited provides VAT return and accounting support in Coventry and can combine this with bookkeeping services in Coventry and Warwickshire.
For broader help with accounting, payroll and company compliance, see our Accountant Coventry homepage.
Comments