VAT Inspections

When you run a business and pay and/or reclaim VAT, you can expect VAT inspection visits from HM Revenue & Customs (HMRC) to check that your calculations are correct.

The interval between inspections depends on the size and complexity of your business and whether you have made accurate and timely returns and payments. For certain queries, a phone call or letter may be used, rather than a full inspection.

Procedure

You will normally receive notice of the visit, details of the officer making the visit, the likely length of the visit and an indication of who the officer will want to see and the records required.

During the visit the officer will discuss your business and examine your records. The officer may inspect your premises and any goods kept there.

At the end of the visit the officer will:

• provide help and support including details of schemes that may make dealing with VAT easier
• work through any errors with you, show how they occurred and how to prevent them happening again
• discuss any concerns and agree any future action
• advise you of overpayments and underpayments and the reasons for these
• explain your right to a review or appeal
• explain how you can find out further information from the National Advice Service

After the visit you can request a written summary of the visit. The officer will explain and quantify any errors in writing ensuring that you have plenty of time to respond. If you disagree with a decision you will be asked to provide more information.

What HMRC expects of you

You must account for VAT correctly.

You should also:

• keep your records, declarations and payments up-to-date
• provide the information and explanations requested within the specified time
• help the officer understand your business and records
• ask HMRC if you are unsure of any matter connected with tax

What you can expect from HMRC

The officer should be polite, respect confidentiality, and where possible, resolve matters during the visit. Your time should be kept to a minimum. You may appeal certain decisions.

If you would like any further information about our tax investigation services, or have any questions or comments, please contact us.

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