How a local builder saved over £25,000 in VAT

and penalties in less than 60 days with help from RHJ Accountants

If you need a window fitted in Greater Manchester, Adam S. is your man. A sole trader for several years, Adam is an expert in the glazing arts. He happily earned approximately £50,000 a year installing windows in homes and businesses throughout the county. Life was good for Adam until he got a shocking letter from HMRC. He owed over £30,000 in VAT and penalties: the equivalent of over six months’ earnings.

Why DIY bookkeeping can be dangerous for sole traders
Adam had done his own bookkeeping for as long as he had been in business for himself. Naturally, Adam had heard of the VAT, but he didn’t realize that he was liable for VAT registration based on his turnover for the prior twelve months. Like many non-accountants, Adam thought “12 months” was the same as a year. HMRC begged to differ.

Adam had gone over the VAT threshold for five years, and, to make matters worse, he had also failed to register for the VAT, incurring the wrath of Her Majesty’s tax collectors.

Hiring UK Individual tax services and VAT experts RHJ Accountants
Panicked, Adam reached out to RHJ Accountants. The firm examined Adam’s DIY bookkeeping, took care of his VAT filings, and negotiated an 83% reduction in his tax and penalties. The shocking £30,000 burden was reduced to a manageable £5,000. The whole process took RHJ fewer than 60 days.

“We’ve seen this before: a successful sole trader caught in the VAT trap because they hadn’t kept up with the annual changes in the VAT and reporting requirements. It’s quite easy for small and seasonal businesses to get caught unawares,” says Jeremiah Jordan, co-founder of RHJ Accountants. “We get to know you, and pro-actively put you on the tax scheme that makes the most sense for you, based on your short-and long-term goals. Then, as we process your bookkeeping, we pro-actively monitor your situation and make adjustments.”

Adam S. recommends RHJ Accountants in Sheffield

“If only I had used RHJ from when I'd started my business it would have saved me a fair amount of money," says Adam S. "I met Jeremiah for a quick interview in his Sheffield office. Very down to earth. Told me exactly where I stood and what I had to do to rectify the problem. My emails were answered very quickly. Then RHJ did the rest... I would definitely recommend Jeremiah and RHJ Accountants to anyone... Couldn't wish for a better service.”

Adam S.
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RHJ Accountants Tax Services for Sole Traders

  • Accounting and bookkeeping
  • Audits
  • Individual and corporate tax returns
  • Company House filings
  • VAT filings and returns, both domestic and international
  • IFRS compliance
  • Payroll reporting compliance
Some details of this story have been altered to protect our client’s confidential information and privacy.

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