Your mission is two-fold: You have to avoid silly mistakes.
And you have to look for every possible legitimate input tax claim, to lower your Vat bill.
Here's one such tip you can put into practice today!
Let your bank charges shrink your Vat bill
Claim back the Vat on bank charges as input tax.
Yip, that's right! You can save quite a bit for your business. I'll show you how below...
+++ Solvency and liquidity tests made easy +++
The 2008 Companies Act says requires you to perform solvency and liquidity ratios on your annual financial statements.
This sounds like an extremely good idea because if your solvency and liquidity ratios are high, your business will have enough cash in it fulfill all its obligations.
But you think that you can't perform these ratios yourself own because they're too complicated. You thought wrong!
In our Directors' Duties Workshop 2013
, you'll learn how to perform solvency and liquidity ratios, quickly and easily, as well as the other Directors' Duties that the 2008 Companies Act stipulates. Download the brochure and registration form here
When you receive your bank statement, look for bank charges marked with a '*, #' , or similar mark. These marks indicate the bank charges which include Vat. So all you have to do at the end of the tax period is add up all these charges, multiply by 14/114, and you have some extra input tax you can claim.
Write the amount in block 15 on your next Vat return.
And don't worry about where you're going to find the documentary proof to prove this input tax claim. Remember, your bank statement usually contains all the details of a valid tax invoice. But, if it doesn't, then ask your bank for one!
Remember, if you haven't claimed this before, you can claim all the Vat on your bank charges, going back for the last five years.
But bank charges are just one of 16 items you can legally claim input tax on to slash your Vat bill.
+++ Get rid of your poor performer without landing at the CCMA! +++
You can't afford to have poor performers in your company.
But you also can't afford to be taken to the cleaners at the CCMA for dismissing incorrectly!
Find out how you to LEGALLY get rid of poor performers here
7 more items you can claim input tax on
Here are some examples of business costs that you can claim the input tax on:
Fixed assets; and
But, there are more items you must be aware of that you can claim input tax on that I haven't mentioned here.
The Practical Vat Loose Leaf
will show you
When and how to claim your input tax
Two things you must do to guarantee your input tax claim
7 items you can claim input tax on
9 more items you CAN claim input tax on, but didn't know about
5 exceptions to the rule against entertainment expenses
Motor vehicles you can and can't claim input tax on
And much more
I sure hope you'll be putting this great input tax tip into practice today!
Until next week