In spite of the apparent green shoots of recovery evident over the last few months, times are still tough.
Nowhere is this more acutely felt than small business. Sadly it’s the small enterprises that often fail when economic stringency bites. Yet, it doesn’t necessarily need to be that way. With good advice even start-up businesses can still prosper. That’s where accountants like Steven Glicher can help: our expert advice will help to ensure that your small business does not become another failed statistic. Our role is to help your business prosper and take advantage of every available opportunity to push your business forward.
Here’s an example of what we mean about expert small businesses’ tax advice.
Did you know that a third of small and start-up businesses fail because they don’t claim back VAT? Yes, as incomprehensible as it may sound, these businesses do not claim back their VAT and are therefore missing out on significant cash savings. Why are they not making the most of this opportunity? Well, according to a new study it’s simply because they don’t understand the rules associated with tax.
The report, commissioned by Sage, also found that many small businesses are failing to claim at least £500 each year because they don’t understand which items they can recoup VAT on. These business owners may have known that everyday office items like stationery and printer ink were tax-deductible, but they weren’t aware that other work-related purchases and expenses like fuel were also tax-deductible. In fact fuel, or more specifically ‘travel’ along with food and refreshments are SME’s biggest costs, yet VAT is reclaimable on both in a business context.
According to Lee Perkins, managing director of Sage’s small business unit, this lack of knowledge could determine whether small businesses sink or swim:
“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.”
According to the study, the complexities around reclaiming VAT means 36% of owner-managers miss out on savings. What’s more, more than half, (52%) of those surveyed believe that such negligence costs them and their business hundreds of pounds each year.
Whether you’re just starting out or have been in business for many years, Steven Glicher accountants can help SMEs meet VAT responsibilities.
We will look at VAT schemes you are eligible for and establish whether you would be better off adopting one or a mixture of them. Some schemes can lead to tax savings and a reduction inresponsibilities. Don’t miss out: claim back what you’re rightly entitled to. Contact Steven Glicher accountants on 0161 485 8007 for further information.