VAT Investigation

A VAT inspection or investigation can be an extremely stressful event and involves HMRC inspecting your VAT records to ensure your business is paying the correct amount of VAT. Richie Phillips are experienced VAT accountants who can assist both with any inspection or investigation as well as providing expert VAT advice.

What triggers a VAT inspection?

There are a number of factors that may trigger a VAT inspection, and these include a significant increase in VAT claims, a VAT return that shows a net repayment, a business that operates in what is seen as a higher-risk sector, third party information, late or non-payments of VAT, penalties, or other inconsistencies. No business should consider themselves exempt from a VAT inspection.

HMRC can inspect records going back 4 years or longer if they identify fraudulent activity when they can inspect records going back 20 years. If HMRC find errors or irregularities, you will either be asked to make an adjustment on a subsequent VAT return, or you will be issued with an assessment. If you are issued with an assessment, you will also have to pay interest and penalties if appropriate.

A VAT inspection or investigation can happen at any time, although a business is usually given up to 7 days to prepare for the visit. This can be extended for a good reason but in some cases a VAT inspection can be unannounced. Our expert VAT accountants are able to assist with VAT in a number of aways including ensuring your VAT accounting and record keeping is comprehensive and accurate, providing advice about whether voluntary disclosure is appropriate to minimise penalties and helping to prepare for an inspection. We’ll ensure that any inspection or investigation is concluded as swiftly as possible with the best possible outcome.

If you would like to discuss a VAT investigation, please get in touch.