VAT Inspections

VAT inspections by HM Revenue and Customs (HMRC) are a routine part of running a company and typically occur once every 4 – 6 years.

Your first notice that a VAT inspection will be required will usually be a telephone call from your local office of HMRC who will agree a date for a meeting at the company’s offices, usually within 30 days.

A confirmation letter will ask you to ensure that the following records, accounts and documents are available, dating back three years from your last due return, or to the start of trading, if registered for less than three years:

1.      Annual accounts

2.      The VAT account or any related working papers

3.      All books and accounts, cashbook, petty cashbook, sales and purchases day books

4.      Sales and purchase invoices

5.      All supporting documentation, e.g. contracts, correspondence, etc.

6.      Bank statements

7.      Your VAT certificate and certificate of registration

On the day of the visit, the Inspector will go through the detailed records, checking the calculations and the completeness of the accounting records and supporting vouchers.

They will advise you of any errors in your calculations or accounting procedures that will need correcting.

K N Martin has many years experience in dealing with inspections of this nature and can offer you guidance throughout. This can include an initial review of your VAT records, attending the VAT inspection on the day and dealing with any queries raised by the inspector thereafter.

Please contact us if you would like more information.

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