HMRC’s VAT Enquiries and How to Get Prepared for Them?


HMRC, which collects taxes in the UK. Checks a huge number of businesses every year to make sure that VAT payments are being made correctly. Audits for VAT are not only a pain but also make you worry about your business.

Powerful computer systems at HMRC make it easy to track VAT returns. Even if you are sure that your tax returns don’t have any mistakes. HMRC may decide to visit you if they think you are trying to cheat them out of VAT. Because these visits are unavoidable, here are some tips to help you get ready in advance.

Check on the Status of the VAT

On very rare occasions, HMRC has shown up without warning. Most of the time, HMRC gives notice before a surprise visit. But they have been known to show up without warning. If your tax consultants review your VAT regularly. You won’t have to worry as much about an HMRC audit right before it happens. If you do this, you’ll be able to spot accounting problems quickly. Which will help you keep your VAT records as accurate as possible.

Most companies don’t do a VAT health check until the last minute. Which means they miss out on many opportunities that HMRC has found. Even double-checking your VAT ahead of time doesn’t guarantee that your books won’t have any mistakes. You can rest easy knowing that you’ve done your part.

Prepare your Papers.

Because HMRC has the right to look at business records from the past four years to find and fix problems, it is important to have all relevant papers ready for the VAT audit. Even though it’s not always necessary to show older documents, doing so can prevent problems that might not have been planned for. We recommend preparing working files as per the VAT frequency to make things easier for you and the HMRC.

Your Team Needs to be Ready for a VAT Audit.

HMRC may also want to talk to the company’s director or the person who did the VAT returns in addition to looking at the company’s paperwork. Make sure they can be found and reached on the day of the visit. Also, make sure they understand how your business puts together its VAT returns.

During the visit, HMRC officers will ask you a lot of questions that you might not be able to answer fully or correctly. If you don’t know the answer, tell the officer you’ll get back to them as soon as you can. This will keep you out of trouble. You won’t have to worry about giving the wrong information and making more problems for your business.

Your Behaviour on the Day of the HMRC Visit

During the visit, it’s likely that their questions will add to the stress you’re already feeling. Keep your cool and be nice to the police. If you don’t, you might make them want to look into you more. If the police see strange or wrong behaviour, they may be more likely to take a tougher stance and look into the case further. To have a successful meeting, you should act like a businessperson, and respond with facts and courtesy.

Taxsteins Ltd to the Rescue

When you have knowledgeable tax advisors and consultants on your team, you are less likely to make VAT mistakes or get audited. If you require assistance in this matter, please give us a shout at 02071559545 or email us at info@taxsteins.co.uk.