VAT and Spectacle and Contact Lens Dispensing
There are a number of briefings designed to help practitioners understand mixed sales of partially exempt goods
Business Briefings by Bob Hutchinson
Principal Eros Business Consulting
Bob Hutchinson Answers Questions On VAT Sent To PHN
April 1st was no April Fool's Day this year for VAT registered Businesses!
April 1st was indeed MTD day.
All VAT registered practices with a taxable income of over £85000 per annum must from their first return of their financial year following April 1st upload their return digitally. You will not be able to key in your return figures on line as in the past. The digital function must be in place for a seamless transport of your details to HMRC using a number of software options.
This will require you to use a software package like QuickBooks or Sage or you can continue to use spreadsheets but you will need to follow rules to allow this and obtain "Bridging Software Api" which will link the specific details of your 9 Box vat return direct to the HMRC.
You can pilot this software and we suggest you do this as soon as possible.
Once you have bridged your information to HMRC you have a further 6 months window to ensure that your legacy systems create your returns from the raw data you receive on sales and purchases from where you directly input them.
For example if you have a PMS delivering your sales in sales type category form, you will need to input that directly by csv or excel files into your sofware package or into your spreadsheets if that is what you are using.
Once you have inputted your purchase ledger invoices in their particular attribution from your paper invoices (Directly attributable, Non Attributable and Exempt your system will need to calculate your partial exemption restriction and apply this without further intervention by you manually.
In otherwise from the initial input of figures there will need to be an uninterrupted digital flow of information without manual manipulation to provide your 9 box submission again digitally with no keying of figures direct to HMRC.
Click here for initial Advice on MTD
Here are some questions we receive on VAT for Optical Practices
What are the VAT/TAX implications of purchasing clinical equipment (including PCs and software) for a practice? From a TAX/VAT point of view is it better to lease or buy? What exactly is the de minimus rule?
Click for FAQs on VAT
Are You Sure You Are Not Paying Too Much VAT Out Of Your Net Profits?
VAT Cases to be shared with the community...
The reason for this business brief is that many practitioners are still working to old agreed apportionment methods that are not only either no longer relevant or worst still are costing the practice too much tax which in a profitable practice means direct loss of net profit.
Click for Are You Sure You Aren't Paying Too Much VAT Briefing
The Advantages Of Using Stock Modules To Improve VAT Position
Many practitioners see the use of a stock module as an additional luxury which adds time with little benefit to the practice. This is because they have never been shown how stock knowledge can increase profitability, help with promotions, ensure gross profitability levels are retained or maximised and even improve your VAT apportionment agreement or reduce sales tax payments.
Click for Advantage of Using Stock Modules Briefing
Bob Hutchinson has been working in the centre of the optical sector since becoming an optometrist in the 70’s.
Recently retiring from clinical optometry, he continues to act for many SMEs as well as larger groups in strategy, PR & marketing and financial advice with a specialism in optical VAT.
His client base also includes large industrial companies in equipment and IT involved in the optical industry to name a few.
Still involved in optical decision making his aim has always been to encourage regulators and negotiators to allow the sector to flourish, and to assist others to own and manage financially robust businesses.
Eros Business Consulting Ltd