When calculating how much to add to services for VAT, or how much you need to pay in VAT returns at the end of the tax year, you may end up confused by the amounts, as well as how to actually work them out in the first place. By using a VAT software package, you can then simply input the required data, and allow the system to do any extensive calculations on your behalf.
Calculate VAT Returns
Alongside your business tax returns that may need to be sent off each year, you may also have VAT returns that need to be paid. Using a piece of VAT software – you can click here to find out more – may help to simplify the process. When there are a number of calculations to be made, or you have different types of sales throughout the year, you may not be certain on how much VAT you need to pay. Miscalculating can lead to consequences from your tax office. This way, you can estimate what you need to pay, and make sure you have the money to hand, so there is less likely to be any nasty surprises later down the line.
Make Records Easy to Access
The time that you need to keep business records can vary depending on the type of company you own. If you are self-employed, you might need to have records stored for a minimum of five years, but limited companies should keep them for an additional year. Employers may also need PAYE records for a minimum of three years. When you consider all of the paperwork that could be involved with these records, it soon becomes apparent how a digital VAT system could make storing your financial records a bit easier, and even save on space within your office, or home. Also, factoring in consequences should records be lost or incomplete, it might be helpful to have everything on a piece of software, where gaps might be more evident, allowing you to notice and chase up discrepancies that much quicker.
Make International Sales
Since leaving the EU, the UK may not have the same VAT amounts as its neighbouring countries. Due to this, VAT amounts will need to vary, depending on where you are trading. A good piece of VAT software may allow you to calculate the tax amounts to be added to your products, making overseas sales that much simpler. They may also have an additional benefit of calculating the exchange rate for you, which can also cut the time it takes to accurately price your wares.
VAT might seem confusing, but using VAT software can make your returns and sales a little bit easier. By incorporating one, and making sure that any staff members who need to use it have had adequate training, you might be able to spend less time on essential administrative tasks, and more time selling your products or services.
