CAT / FIA FTX Syllabus F. Value Added Tax - VAT information - Notes ^{1 / 1}

Impact of VAT on cash flow and financial forecasts

A Company should ensure that cash is reserved to pay the VAT due after each period.

Impact of changes in VAT on recording systems

Changes in VAT legislation may need to be communicated to staff and customers

Notification of changes in VAT

Changes in VAT legislation are usually notified by HMRC to traders via bulletins or notices. 

If a change affects a certain sector of businesses, then the relevant businesses will receive a paper or email version of the notice.

Impact on accounting systems and staff

A change in VAT legislation, such as a change in VAT rate, may require the accounting systems to be adjusted. 

The business will need to notify its own staff and customers well in advance of the change.

Seeking guidance from HMRC

HMRC usually expect taxpayers to find answers to any queries on their website.

However there is also a VAT Helpline where advice can be given to registered persons on most VAT matters.