Why Professional Advice is Key to Business Success

This guest article by Les Howard, a renowned VAT specialist and two-time Ceres Podcast guest, sheds light on the history of taxation—from ancient times to modern VAT. Curious to hear more from Les? Check out episodes 181 and 186 of the Ceres Podcast, where he joins Stelios for insightful discussions. For more, follow Les Howard on LinkedIn.

I have advised businesses on VAT since I left HMCE (long before it became HMRC) in 1986. One observation I can make is that businesses that fail to seek advice struggle. Good advice will cost money - no advice usually costs much more!

Find an accountant. The bigger firms are very expensive, so a local practice with two or three partners might be your best option. Ask whether they are familiar with your type of business.

Some questions to consider:

• Who will do your day-to-day bookkeeping?
• What accounting software will suit you? Both you and your Accountant will need to be able to access this. Will you need to access some training?
• What is the preferable legal entity? Sole trader or partnership or limited company. This is a key question for an accountant, as it will impact VAT and your direct tax position. (Do tell your Accountant if you are involved in any other businesses.)
• Are you or someone else investing money into the new business? Tell your Accountant. This matters.

• Research a suitable till. Ideally, this will be electronic and linked to your accounting software. Train your staff in its use.
• You should think about VAT from an early stage. Do not wait until you are required to be registered.
• Assume you will have to register for VAT. What are the implications for doing so? Should you register early or wait until you are required to do so? (For most retail hospitality businesses, waiting until you need to register is the rule of thumb.)
• You might want to sell via third-party APP's like Deliveroo and UberEats. This can boost your sales, but the APP will take a percentage commission.
• Are there any VAT special schemes which will make matters easier or cheaper for you? I mentioned in a previous article that Cash Accounting does not suit retail businesses.
• Re-visit this advice periodically.

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