Why have I been selected for a VAT inspection?
HMRC normally select businesses using a computerised selection process. Therefore, if you make a large purchase of capital equipment or have a large bad debt relief claim you will be more likely to be selected.
Not surprisingly… we also find that businesses that are regularly receive repayments from HMRC are often selected.
I haven’t been given much notice by HMRC, will I be able to change the date?
HMRC normally only give 7 days notice, however, they are relatively flexible about changing the date of the visit. However, you will not be able to postpone it indefinitely!
What will the VAT inspector ask about?
The VAT inspector will want to gain an understanding of your business activities – especially if you make exports or sales to EU customers.
If you are loss making, they will also be interested in whether you will be in a repayment position in the future, so will ask questions about whether you are expecting to be profit making in the future.
The VAT inspector will review your VAT return and request supporting documentation – typically for larger or more unusual transactions.