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HMRC VAT inspection

HMRC is asking to check all the paperwork again.

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I need help. In Apirl 2018 HMRC opens an inspection in my client VAT going back four years. At that time they wanted to visit the premises and check all the VAT records from 2014 to 2018. Hmrc officer came and check all the records and was satisfy with everything apart from few minor points (Company Car). Also forgot to mention that my client was using factoring from Jan 2014 to Jan 2018 soon after the factoring ended we started audit of all the sales which went through factoring. That audit resulted in a correction of £27000 which was informed to HMRC officer. HMRC officer was fine with this correction and asked us to let her know how much corrections falls in which VAT period so that she can amend the VAT returns and ask us for the payment.

While correspondence with HMRC officer was pretty much concluded and with just a few minor issues that were being adjusted the officer informed us that she is now been transferred to another department and some other officer will take over this inspection.

After 5 months the other officer contacted us and he wanted to check all the paperwork again.

My question is can current officer ask us for all the information again even though the previous Hmrc officer was Happy and had agreed with everything.

It is not that we are hiding something but organising everything again will be very time consuming as my client has over 11 thousands plus transactions per year, hence to collate and present all over again will be very time consuming.

If anyone can guide us how to go about satisfying or concluding this without creating any friction and also is there any grounds that we can uphold him to go through his colleagues notes in respect of the liability that arose due to the correction.

Also can he ask for the documents again for the inspection or can we write to his superiors advising that this matter was already previously inspected and concluded.

Replies (4)

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By Jdopus
10th Jul 2019 09:01

I would dig my heels in on this and point out that a correction was already agreed. Point out that any further attempts to start the entire inspection over would amount to a fishing expedition and be an unreasonable expense to your client.

There might not be a way to conclude this without friction, but I guarantee that if you let this inspector back in, he will do his absolute hardest to increase the assessment. Otherwise he'll be unable to justify the use of his time to his supervisors.

HMRC don't just get to do things over endlessly until they find the answer they're looking for.

Thanks (2)
By Vaughan Blake1
10th Jul 2019 09:26

My opening gambit would be to ask for a full explanation as to why the new inspector feels this is necessary. You can then take up the cudgels from there.

I am afraid that anything short of full compliance with their requests will result in friction to some degree. You could try giving the guy a ring with the "oh come on mate", friendly approach, most tax inspectors are human and can respond well to a polite, good humoured, common sense approach. Some however......

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By carnmores
10th Jul 2019 18:55

Just say no!

Thanks (0)
By sammerchant
12th Jul 2019 09:53

Something similar happened to me and my client. I asked to speak to the 'line manager' who was very understanding and withdrew the request ... in writing. He also confessed that he did not know there had been a previous inspection!

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