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HMRC Enquiries

Making the complex simple

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With an experienced ex-HMRC VAT Officer leading our VAT services team, we are very well equipped with the know-how needed to deal with all aspects of HMRC engagement, from formal VAT investigations to simple HMRC VAT enquiries. We’re here to help make your HMRC experience as smooth and pain-free as possible.

VAT Compliance Visits

Most VAT registered businesses experience a VAT visit at some stage or other, whether a ‘full’ inspection or a quick check to varify a specific VAT return or transaction, usually ones that have resulted in a VAT refund claim. We have the know-how needed to deal with HMRC, whether a quick query or a more in-depth check. We even know which biscuits VAT officers are more likely to prefer.

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HMRC Investigations

Some VAT registered businesses (and many that aren’t VAT registered) are subjected to more vigourous investigations, particularly where HMRC have reason to believe declarations have not been accurate. Where errors have been uncovered, it is especially important that the response to HMRC’s questions is well-managed and that correct procedure has been followed by HMRC. Although assessments cannot always be prevented, with careful management they can often be minimised, and potential penalties avoided or mitigated. We have the knowledge an experience to help you or your clients navigate through a formal VAT investigation.

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Case Study

HMRC Enquiries

VAT Compliance Visits

HMRC Input VAT challenge

Our client was in the process of raising funds to meet the costs of developing a Renewable Waste Plant. Because the plant’s revenue will be subject to VAT, it VAT registered to recover VAT on the development costs. Funding was partially met by the issue of Bonds, which were being managed by a Bond Manager whose services were also being paid for in Bonds rather than cash.

Our client has been recovering the VAT charged on the Bond Manager’s invoices. HMRC queried this, arguing that payment in Bonds does not meet the conditions for VAT recovery because the issue of Bonds cannot represent ‘consideration’, which is an essential feature of a supply that is subject to VAT. We argued that HMRC’s view of what constituted consideration was far too narrow and by reference to relevant VAT caselaw, demonstrated that the issue of Bonds could represent ‘consideration.’

HMRC  accepted our arguments and released our client’s VAT refund.

HMRC Investigations

Avoid issues escalating

Our client had been subject to a VAT investigation from HMRC due to him having significant VAT arrears and a number of missing VAT returns. HMRC were aware of certain transactions that had not been declared, (mainly because there were missing VAT returns), but because the matter had not been dealt with properly by our client, it had escalated into a more advanced investigation.

We advised (and convinced) our client that making a full disclosure would avoid the matter getting out of control and would hopefully lead to a reasonable settlement. We acted as intermediary between HMRC and the client and ironed out the issues that had so far prevented any meaningful progress.

The main issues that had caused HMRC to escalate matters turned out to be small matters and we quickly brought our clients returns up to date, enabling HMRC to scale their investigation back.

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VAT &
Property

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VAT &
Online Trading

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VAT &
Travel Services

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HMRC
Enquiries

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VAT &
Financial Services

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VAT on
M&A Transactions

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VAT &
Cross Border
Transactions

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