TAX SPECIALIST WARNS THAT POINTS OF PRINCIPLE CAN BE VERY EXPENSIVE

June 21,2006

Don’t wind up the VATman – that was the advice given to owner-managers by tax adviser Steve Botham at a “Tax & Pensions” seminar in Birmingham.

Mr Botham, who is a director of city centre-based BNB Tax Consultants, warned that unsuspecting managers could easily fall into VAT traps but said that, with the right advice, they could use VAT to their own advantage.

For instance, paying VAT on-line offered three benefits. “There’s a cash flow advantage; paying by direct debit gives you up to a further ten days credit and it enables you to get the VAT return out of the way earlier in the cycle while still paying at a later date,” said Mr Botham.

Even if a business didn’t deal on-line, it could still make the system work in its favour by making sure that VAT returns fitted in with the business’ cash flow.

But he warned:  “There are so many VAT traps to fall into. Records and accounts, buying & selling a business, buying or leasing property – all have their dangers. Whatever you do, however, don’t wind up the VATman.

“Why get into an argument? If they want to see certain documentation, and you have got it, then where’s the harm?  In the end, you might think you have won. But points of principle are very expensive – and they will cost you money one way or the other.” 

The seminar, held as part of Aston Science Park’s programme to promote sustainable business improvement and growth amongst SMEs, was held in association with Aston  University, Lloyds TSB Business, stockbrokers KBC Peel Hunt, law firm The Wilkes Partnership and Parker Business Development. Other speakers included Terri Halstead, a tax partner at accountants Haines Watts, Rob Baker, a senior adviser at Scottish Widows, and Andy Parker, managing director of Parker Business Development. PICTURED: Steve Botham (BNB Tax Consultants) and Matthew Hidderley (Aston Science Park)   For further information contact: Charlotte Hughes, PR Executive, 0121 260 6182, This email address is being protected from spam bots, you need Javascript enabled to view it