A client has been selected for a VAT inspection. We have reviewed the returns and paperwork and identified errors from August and September 2008.
We will advise the inspector when we meet for the VAT inspection that there has been an undeclaration.
Will the penalties be subject to old regime and will the client suffer a maximum misdeclaration penalty of 15%? The underdeclared VAT is in the region of £4,000.