VAT Investigation

Psyche Registered Posts: 187 🎆 🐘 🎆
Hi all,
One of my clients is being visited by the VAT authorities from the VAT assurance team. Other than provide documentation of all VAT charged and paid (he is on the flat rate scheme) what else is involved, does anyone have any experience of this?
Providing documentation does not so far seem to be his forte...



  • toshi
    toshi Registered Posts: 27 💫 🐯 💫

    He must make sure all the purchase invoices, sales invoices,any expenses invoices, banking books and all this vat returns going back six years are available for the vat man to investigate further.

    He should had a letter stated what evidence they need.
  • claudialowe
    claudialowe Registered Posts: 275
    Sales and purchases, together with copies of how they have calculated the FRS and how they went about choosing their sector/percentage.

    A frightening number of people on the FRS calculate the VAT due on the net sales not gross, and that is probably what they want to look at.

    They might also want to look at bank statements, to check that interest earned and other money is being accounted for under the FRS.

    It might be worthwhile your checking through everything to see is there is anything amiss, and if there is, then phoning the officer beforehand and "coming clean" which will mitigate any penalties levied against your client.

    Prepare them for the interview, and remind them to behave like children - only speak when you are spoken to!!

  • Psyche
    Psyche Registered Posts: 187 🎆 🐘 🎆
    Ah, "checking through everything", now that would be a dream come true as I have been chasing him for documents for 2.5 months!

    Thanks for the help.
  • claudialowe
    claudialowe Registered Posts: 275
    Show him the difference in penalties between disclosed undisclosed errors - see if that helps him look for things?!

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