VAT Issues

General VAT advice is very important to a business.
VAT consultancy can be crucial to the survival of a business.

Consultancy goes beyond advice. Generally speaking a specific area of your business or a specific type of transaction, be it in the form of business income or business expenditure, will be closely examined to ensure that a business is not suffering adversely by virtue of the incorrect treatment of the areas being reviewed.

Consultancy is usually driven by a need or desire to reduce VAT payable by either reducing output tax due on income, increasing input tax recoverable on expenditure or both.

Ruffles & Co can undertake specific consultancy assignments that are aimed at delivering savings and other benefits to your business.

Consultancy Outcomes

When considering solutions to issues it is necessary to consider not only VAT but other forms of taxation. Similarly it is necessary to look at areas of supply in conjunction with other areas of the business to ensure that suggestions relating to the improvement of one aspect of the business do not impair the operation of other areas.

Solutions might not be restricted to improvements or changes to the UK operation. Significant advantages, both tax related and non-tax related, can be achieved by looking at offshore structures.

Example – Offshore Structure

A company had a valuable trade name. The intellectual property was held in an offshore company whilst the trading activities were undertaken in a UK company. The business was identified by another corporate as being desirable. An approach was made to purchase the trading company. The offer was accepted and a substantial sum paid. At this point the purchaser was made aware that he had not actually acquired the intellectual property and that he could not use the trading name. The purchaser was forced to pay a significant sum to the offshore company for the intellectual property.

Consideration for the trading company was taxed in the UK. Consideration for the intellectual property was taxed at virtually nil in the offshore jurisdiction and was not taxed in the UK at all.

There are many opportunities arising from the use of offshore locations. Consultancy will usually highlight any such opportunities.