VAT officers can visit your business at any time to carry out an HMRC VAT inspection. The purpose of an HMRC VAT inspection is to check that you’re paying or reclaiming the correct amount of VAT.

If you have received a letter or phone call informing you that VAT officers plan to undertake an HMRC VAT inspection into your tax affairs, our expert HMRC solicitors and barristers are on hand to help. With decades of experience assisting clients in all HMRC and border force issues and an understanding of the intricacies of business gleaned from years working for large corporations and public bodies, our abilities go far beyond that of a conventional law firm. We will guide you through the HMRC VAT inspection, protecting your position and ensuring the process runs smoothly.

 

For a confidential free discussion, call us today on 01908 414990,  alternatively email us at Hello@altion-law.co.uk or complete our Free Enquiry Form and we will call you back.

 

What is VAT?  

VAT is a consumption tax which is added to most products or services provided by VAT-registered businesses in the UK. The tax generates substantial income for the government, so HMRC takes proactive steps to ensure everyone registered for VAT accounts for it properly.

 

Do you Have to Pay VAT?

 If your business’s turnover exceeds £90,000, you are obliged to register for VAT. You can register for VAT when you have a lower turnover if you wish, and doing so can be beneficial in some circumstances. For example, being VAT registered can give the appearance of being a much larger business than you are, which can be attractive to consumers, suppliers, and investors.

 

What Must you do if you are VAT-Registered?

 If you register for VAT either because you are obliged to or by choice, you must ensure you comply with the following obligations:

  • You must add VAT to all the goods and services you sell.
  • You must account for VAT on any goods you import into the UK.
  • You must keep accurate records of the VAT you have paid on goods or services you buy.
  • You must send VAT returns to HMRC.
  • You must pay VAT to HMRC.

 

What is an HMRC VAT Inspection?

An HMRC VAT inspection involves VAT officers visiting your premises to confirm that you are paying or reclaiming the right amount of VAT. HMRC will usually notify you in advance of its intention to carry out an HMRC VAT inspection, but officers can turn up at your premises unannounced if they wish.

 

What Happens During an HMRC VAT Inspection?

During their inspection, the VAT officers will delve into your tax affairs. This often involves them checking the figures on your last VAT return and looking into any large or unusual transactions.  Depending on the nature of your business and the reason for their visit, the officers might want to discuss other issues, such as your VAT-exempt activities, exports, or any bad debt relief you have claimed.

Our expert HMRC solicitors and barristers can accompany you to the HMRC VAT inspection to help you answer the officers’ queries and provide the documentation they request.

 

How far back can an HMRC VAT Inspection go?

 HMRC might only be interested in one of your VAT returns, but its officers can look into your VAT affairs going back four years if they wish. If they suspect fraud, the HMRC VAT inspection can span 20 years.

Part of our VAT solicitors’ role when they accompany you to an HMRC VAT inspection is to ensure the officers do not exceed the remit of their powers, for example, by seeking to extend their investigations further back than they are allowed.

 

How long does an HMRC VAT Inspection last?

An HMRC VAT inspection will last as long as it takes the officers to confirm that you are paying and reclaiming the correct amount. It usually takes a few days but can be shorter if the officers quickly establish that everything is as it should be or longer if they uncover anomalies. If the officers identify activity suggestive of fraud, the HMRC VAT inspection will likely take some time.

 

What Happens at the end of an HMRC VAT Inspection?

After its officers have completed their inspection, HMRC will write to you informing you of the outcome. In its letter, HMRC will confirm:

  • If you need to take any steps to improve your VAT record keeping.
  • If you need to make any corrections to your VAT account.
  • If you’re overpaying or underpaying VAT.
  • If HMRC are imposing any penalty on your business.

 

If you disagree with HMRC’s conclusions, you can appeal, provided you do so within 30 days.

For a confidential free discussion, call us today on 01908 414990,  alternatively email us at Hello@altion-law.co.uk or complete our Free Enquiry Form and we will call you back.