VAT Compliance Check

VAT compliance is an important issue for all businesses, regardless of size or industry. Complying with legislation ensures that your business operates lawfully, and failing to do so can result in serious repercussions – ranging from financial penalties to criminal prosecution in extreme cases.

If your business is looking for a reliable service to help you to meet your VAT obligations, or guide you through what to do if you have inadvertently failed to comply with VAT rules, you should seek expert advice from The VAT People before it is too late. Our qualified professionals take the hassle out of VAT compliance checks and make sure your business meets all the necessary requirements, acting as your in-house compliance team.

Contact us today for more information about our comprehensive VAT compliance checks service. Call us on 0330 8284 226 or fill out our contact form here and we will get in touch with you at a more convenient time.

How we can help with VAT compliance check

We understand that complying with changing VAT legislation can be a challenge, so we offer tailored services to meet your individual needs. Our services include:

• Complete assessment of your company’s current level of compliance with applicable VAT regulations
• Detailed analysis of any discrepancies between existing systems and the applicable law
• Development of appropriate remedial plans to address identified non-compliances
• Implementation advice and support in relation to changes to legislation
• On-going monitoring and evaluation services to ensure ongoing compliance

We have extensive knowledge and experience in all aspects of local, regional, and global VAT compliance, so you can rest assured that our experienced team will provide efficient, accurate advice on how best to fulfil your business’s obligations.

Why Choose The VAT People?

Wide Range of Expertise

Our team of VAT professionals brings together a diverse array of knowledge and experience in VAT legislation, accounting, and compliance across multiple jurisdictions. This wide range of expertise allows us to provide tailored solutions for businesses of all sizes and industries, ensuring full compliance with VAT regulations.

Access to More Skills and Tools

By partnering with us, you gain access to a suite of advanced tools and resources, designed to streamline and optimise your VAT compliance processes. Our specialists stay up-to-date with the latest VAT regulations and industry best practices, ensuring that your business is equipped to handle all aspects of VAT compliance.

Less Overhead

Outsourcing your VAT compliance needs to our team helps you save on overhead costs associated with hiring, training, and retaining in-house VAT specialists. We provide cost-effective solutions that cater to your specific requirements, allowing you to focus on your core business operations.

Peace of Mind

Our meticulous attention to detail and commitment to excellence provides you with the peace of mind that your VAT compliance is in capable hands. We proactively identify potential errors and non-compliance issues, minimising risks and ensuring that your business remains compliant with all relevant VAT regulations.

More Value for Money

Our VAT compliance check services offer exceptional value for money. We provide customised solutions that address your unique business needs, without compromising on quality or efficiency. By leveraging our expertise, you can optimise your VAT processes, reduce errors, and prevent costly penalties or fines.

Quality Control

We uphold the highest standards of quality control in our VAT compliance services. Our team of experts meticulously reviews all aspects of your VAT processes, ensuring accuracy, consistency, and full compliance with all relevant regulations. This commitment to quality helps protect your business from potential risks and liabilities.

Experienced Consultancy Advice

In addition to our comprehensive VAT compliance checks, we offer expert consultancy services to help you navigate complex VAT issues and make informed decisions for your business. Our experienced consultants can provide guidance on VAT planning, risk management, and the implementation of effective compliance strategies to maximise efficiency and minimise risk.

What is a VAT compliance check?

HMRC conducts compliance checks, also known as tax enquiries, investigations, assurance visits, or inspections, to ensure that individuals and businesses are complying with their VAT obligations. A compliance check is a formal examination of your finances to ensure that your VAT return is accurate and that any payments made by the business are accurate and completed on schedule.

Another objective for conducting a compliance check is to prevent tax evasion and ensure that the tax system operates fairly, so inspections can either be random or deliberate.

Initiating a compliance check does not always suggest that HMRC feels there are issues with the business - many checks are just routine. However, the business under investigation must still cooperate and fulfil its obligations, even if they are subject to a routine compliance check, as any errors made during the check could result in delays in the check and further problems. 

How to remain VAT compliant

The key to successful VAT compliance lies in understanding the regulations and procedures that must be adhered to. The business’s goods and supplies affect its VAT obligations, including:

• The rules concerning how VAT should be charged
• What needs to be reported
• When payments need to be made to HMRC
• How tax deductions should be calculated
• Which goods involve different tax rates.

Thanks to the expert team at The VAT People, you can receive comprehensive advice on all aspects of VAT compliance. These include:

• Complete assessments of your business’s existing compliance level
• Detailed analysis of discrepancies between your reporting and applicable laws
• VAT implementation advice and support for changes required to remain compliant
• Ongoing monitoring and evaluation services. 

From the moment of initial contact, you will be working with experienced professionals who will ensure that your business stays up-to-date with the changing legislation and that you avoid costly mistakes.

Getting it wrong can have far-reaching consequences - make sure you do not take chances when it comes to VAT compliance and contact us today.

What triggers a VAT compliance check

A compliance check might have been triggered by anything, such as when the figures on a tax return appear to be incorrect or when a small firm makes a significant VAT claim. HMRC can only determine whether the return is valid by undertaking a compliance check. If nothing is wrong, HMRC will terminate the check. If something does not add up, the tax authority will work with you to correct the situation. Overpayments of tax will be reimbursed with interest. Alternatively, if tax is not paid in full, interest may be assessed.

Individuals and businesses can request a review of their assessment or file an appeal against HMRC's decision. HMRC's determination notice specifies what you can and cannot appeal.

FAQs

What are the VAT requirements in the UK?

VAT compliance regulations in the UK require businesses to register for VAT if their taxable turnover (including any exempt sales) is more than £85,000 in a 12-month rolling period, and to charge the appropriate VAT rate on all goods or services sold. 

The standard rate is 20%, but other rates may apply in some cases. You can find all VAT rates in our guide to VAT rates here.  

Businesses are also required to:

• Keep detailed records of all sales, purchases, and payments that involve VAT
• Submit periodic returns showing the total amount of taxable sales and amounts collected as VAT
• Make payments directly to HM Revenue and Customs.

How do I register for VAT?

To register for VAT in the UK, businesses must complete an online application form on the HMRC website. The information required includes the business's name, address, nature of activities and estimated turnover. 

Once registered, organisations will receive a VAT number which must be used on all invoices or purchase orders that involve VAT. Businesses are then responsible for ensuring they charge and collect the correct rate of VAT as stated on their invoice and order forms, and submit periodic returns detailing their taxable sales, purchases and payments that involve VAT.

What are the outcomes of compliance checks?

If the inspection reveals nothing incorrect, HMRC ends their compliance check there. If their checks find that you overpaid tax, you will be refunded, including any interest. If you have underpaid tax, you will need to repay it. You will be charged interest on the repayment and may also be penalised further.

Penalties

If HMRC discovers an error during the inspection, you may be penalised. When evaluating whether to lower the penalty, HMRC will take your cooperation into account. In general, the more assistance you provide, the lesser the punishment.

Criminal investigation

HMRC's policy is to deal with fraud using civil investigation processes whenever possible.

Criminal investigations are reserved for circumstances in which we need to convey a strong deterrent message or if the behaviour involved is such that only a criminal consequence is suitable.