Re: How to reduce VAT?
Looking at VAT as something which is nothing to do with your finances is the best way. By keeping VAT as a completely separate entity it does not hurt when you send in those cheques.
Luckily the main bulk of our clients are corporate or at least VAT registered so the whole thing is a pointless exercise but it always pains me when we deal B2C. I don't even mind the idea of a luxury goods tax (as was the initial concept of VAT) but when it is put on virtually everything it's just another back-door tax rip off.
Remembers - A supplier from years ago started to fiddle his VAT he thought it was really clever, a few hundred here and a bit less there, used to brag about it down some of the local pubs. I left and started work in Germany for 9 months, then did freelance work all over the place the next time I saw him was about 3 years later he was still at it but the amounts had escalated and he was virtually living of the proceeds he was a nervous wreck.
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