Whilst these occur less frequently than they once did, all VAT registered businesses and organisations will occasionally be subject to inspections.
To help ensure compliance and to keep the risk of penalties at a minimum Constable VAT offers a VAT review service.
A VAT review considers all areas of a business or organisation to determine the VAT liability of supplies and the need for any restriction of recovery in respect of VAT incurred. This requires that we understand the activities carried out and will take several days on site.
At the end of the process a detailed report is produced highlighting areas of concern and potential opportunities for VAT savings. Although this review is not a full audit of the VAT records of a business it provides an detailed overview of risk areas that can then be further examined as necessary.
In terms of minimising penalties on any errors identified in the future by HMRC, commissioning a VAT review is evidence that a business is taking ‘reasonable care’ in relation to VAT compliance, which in turn could lead to mitigation of penalties. You can read more about managing the risk of penalties in our leaflet Penalties for careless and deliberate VAT accounting errors.