VAT check

VAT check

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A VAT inspector is coming to check on my VAT returns since the formation of my company. I have no worries about this since I believe everything has been done correctly. I have also been through all my records again to just make sure all is okay, including non-VAT stuff. (I realise that inspectors may spot other issues which could trigger more visits.)

Although the HMRC letter says the inspector is looking at the returns for VAT since the formation of my company and trying not to be cynical, is he likely to ask for any VAT information prior to company incorporation?

Again, I believe all is in order from my days as a sole trader, but if the inspector was to ask, I would like to have re-checked earlier records just to re-assure myself.

At the same time, if the inspector sticks to the time frame, then I don’t want to waste my time by going over old records. So … the letter says a check on VAT since company formation. Is that 100% the case? Anyone had a different experience?

Regards

Ralph

Replies (6)

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chips_at_mattersey
By Les Howard
23rd Aug 2015 17:18

VAT inspection

HMRC Officers do go beyond their brief, so you may be asked questions beyond the scope of the letter. I would only prepare what he has asked for, and then deal with other questions as they arise.

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By shaun king
24th Aug 2015 09:46

He can't go back any further!!

As nothing existed for VAT purposes prior to the incorporation of the company he can't go back any further as there was nothing in existence in relation to this VAT registration.

So just stick to the Ltd company trading and no more.

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Replying to bernard michael:
By johngroganjga
24th Aug 2015 09:59

Misunderstanding?

shaun king wrote:

As nothing existed for VAT purposes prior to the incorporation of the company he can't go back any further as there was nothing in existence in relation to this VAT registration.

So just stick to the Ltd company trading and no more.

I think the OP is saying that he was VAT registered himself as a sole trader before the company took over the business. So there is something in existence, VAT-wise, from prior to the incorporation of the company - namely the accounting records and, assuming he does not fall under a bus before the day of the visit, the OP himself. 

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By shaun king
24th Aug 2015 10:07

Even so

John they are two different entities and i would say he can still only ask about the Ltd company. If he wants to discuss another entity then write in. However, if the VAT number was transferred between the two entities then he will have to answer questions for both.

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By johngroganjga
24th Aug 2015 10:10

Yes but you didn't say he wasn't allowed to ask - you said there could be nothing to provide even if he was allowed to ask and did so. That was what I disagreed with.  

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By RalphTrader
26th Aug 2015 02:13

Paranoia?

Thanks to all for taking the time to reply - appreciated.

I was registered  for VAT as a sole trader and transferred that registration to the company. In fact, my first VAT return as a company included the last few days' transactions from my time as a sole trader.

I think I may well just double check the records that cover the transition from sole trader to company, not least of all to refresh my memory. As I say, I think everything is okay anyway, right back from years ago - but perhaps a touch of paranoia is setting in!

 

 

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