Vat Inspection

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I have a remote vat inspection soon and have never done one this way before, I would be grateful if anyone could let me know how it works. Thanks

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ghm
By TaxTeddy
06th Feb 2021 10:09

Recently completed one of these for a client. Under the current COVID-19 rules everything is remote and we were able to send through the requested documentation direct to the VAT inspector by email.

The response was very quick and after having made a couple of checks the enquiry was closed. However, I should say that in the closing letter the VAT inspector did say that this was a VAT review and not a full enquiry and that they reserve the right to look further into the relevant periods at a later date, which I suppose is fair enough.

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Replying to TaxTeddy:
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By Paul Crowley
06th Feb 2021 12:18

Not fair enough at all
Suggests they want to pretend it did not happen
Glad you raised that point, it would influence my decision making if I get one

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By Youareatit
06th Feb 2021 12:29

Same as before but with phone conversations and emailing of the docs. They will tell you how it will work.

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By rockallj
06th Feb 2021 16:10

I have had 2 or 3 of these recently.

All done via dropbox: HMRC will send you a link once client has authorised you to act this way to HMRC.

No1 very small inspection/enquiry went well. Only gripe was no proper closure notice and as agents we found it hard to be brought into the loop.

No2, much, much larger, more complicated and many more records.
Gone ok so far but escalated to specialst department. Inspector very accommodating and helpful. Just check hasn't closed yet after 5 months.

For very small straight forward records it's a doddle and preferable to the old visits.
For bigger, more complicated clients, definitely more awkward to deal with.

Oh and you're likely to be asked for an entire software backup. In the good ol' days you could control what was seen. So do a good audit of all transactions, not just VAT ones before the backup goes off to HMRC.

Be interested to know if other issues such as PAYE and status compliance fall out as the result of VAT inspecions like this. Anyone encountered these?

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Replying to rockallj:
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By Youareatit
06th Feb 2021 16:41

[quote=rockallj]

''Be interested to know if other issues such as PAYE and status compliance fall out as the result of VAT inspecions like this. Anyone encountered these?''

Only on one in the past where it became very clear very quickly that the HMRC inspector had a 'beef' for reasons unkown. Found nothing on VAT and PAYE, but threatened to keep digging, until he was reported!

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