We are all familiar with having to complete standard VAT returns within one month, and have diary lines and reminders set up to ensure that we comply.
But, we have recently seen problems with output VAT at a number of practitioners where the insolvent entity is de-registered.
Everyone appears to have systems in place to ensure that input VAT is reclaimed within the three year time limit (on HMRC form 426), but we have found a general lack of awareness of the requirement to account for output VAT within 21 days.
HMRC requires that form 833 is submitted and the VAT paid within 21 days of the sale of the assets. This timing can make it difficult to set standard diary lines and reminders, and the only solution appears to be to ensure that your staff and cashiers are aware of the requirement.
By the time a file review is carried out, the VAT is likely to be late!