If you are involved in VAT disputes with HMRC, it is vital to resolve the matter quickly. Otherwise there could be adverse consequences, including VAT penalties.
If you are facing a VAT dispute with HMRC, speak to a VAT tax solicitor from our team. We provide expert legal advice and representation to businesses, individuals and other entities involved in a VAT dispute.
Types of VAT Disputes
There are lots of way in which a VAT dispute might arise. Some of the most common include –
- VAT registration and de-registration
- HMRC won’t grant a VAT refund
- Incorrect VAT paperwork
- Issues regarding input and output tax
- VAT reclaim is refused
- Missing trader fraud
- Acquisition tax
This is not an exhaustive list. If you disagree with a decision made by HMRC regarding your VAT position, please contact us at Altion Law. We specialise in HMRC and excise matters and can provide professional legal support.
Learn more about the types of VAT dispute below, or contact us for a free initial enquiry.
VAT Registration and De-registration
You must become VAT registered when your taxable turnover exceeds the VAT threshold. You must also cancel this registration if your turnover falls below the VAT threshold. VAT registration penalties can be awarded if you fail to comply with either of these requirements. Disputes may occur where HMRC and a business disagree with the need to register or de-register for VAT.
Why Won’t HMRC Won’t Grant a Refund?
There are times when HMRC refuses to refund your input tax. This might happen if the paperwork is incorrect, the validity of the documents is questioned, or there are queries over the VAT return itself. Having a refund denied can be a serious financial blow to any business. If this has happened to you, you will no doubt want to resolve the problem. We can investigate why a claim has been disallowed and rectify the matter on your behalf.
Find out more about what happens when HMRC Won’t Grant A Refund Of VAT due to you or your business.
I Have Incorrect VAT Paperwork, What Can I Do?
If a VAT invoice does not contain all the information demanded by HMRC, it may be rejected, meaning you cannot reclaim the VAT. If your VAT claim is rejected because of incorrect paperwork, please speak to our solicitors. We can explain what to do.
Find out more about incorrect VAT Documentation.
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Issues Regarding Input and Output Tax
Whether a business is required to pay VAT to HMRC, or whether you are able to claim VAT back from HMRC, will depend on the input and output tax applicable for that quarter. HMRC may question the input or output tax contained within your VAT return, leading to a VAT investigation by HMRC. This is a serious matter and could result in financial penalties if HMRC finds against you.
Find out more about Issues Regarding Input And Output Tax.
What is Missing Trader Fraud?
Many disputes arise out of specialist VAT issues, including missing trader intra-community fraud (MTIC). MTIC fraud can take several different forms, including carousel fraud. Essentially, it is when VAT is exploited during the trading of goods between countries. You can avoid being caught up in MTIC with comprehensive due diligence checks. If you are accused of fraud, expert legal representation is necessary, as it could lead to criminal charges.
Find out more about Missing Trader Fraud.
VAT Claim Is Refused, Is There Anything I Can Do?
If a VAT reclaim is refused, you might want to challenge the decision. To do this, you must understand why the claim was refused, challenge the disallowed tax before the deadline expires, and present the evidence in support of your case. We can manage this process for you, maximising your chances of a successful outcome. We know how important it is to reclaim the VAT owed and will use our expertise to your advantage.
Find out more about what to do when a VAT Reclaim Is Refused.
Acquisition tax is due on the purchase of goods from EU member states. UK businesses must tell HMRC about any goods brought into the UK and pay any duty or VAT due. Acquisition tax is a complicated subject and mistakes can easily be made. Even a minor error – such as failing to present your business accounts in the correct way – may result in HMRC requesting acquisition tax. We can help you remedy the situation.
Find out more about Acquisition Tax.
If you are facing VAT disputes, please contact us for expert legal advice. We can explain the position in greater detail, advising on the most suitable way forward.
If you fail to resolve the dispute, it could result in VAT penalties. These can be costly, and can even be passed across to the director (or directors) in their personal capacity. Because of the potential consequences, we strongly recommend seeking expert legal advice at the earliest available opportunity.
Make An Enquiry Today
We advise and represent businesses and individuals involved in VAT disputes. For a confidential discussion with a VAT tax solicitor, please contact us at Altion Law on, 01908 414990 or complete our free enquiry form and we will call you back.