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Lets hope it isn't the start of anything else coming.
Sometimes IR35 investigations can start off the back of a VAT investigation, luckily at least he has insurance in place to negate this.
Abbey Tax told me its perfectly normal to expect a VAT check within 2-3 years of incorporation. They try to do this whenever possible,
Although it is also fair to say that through your IPSE membership, Abbey will deal with all interested parties when a member is progressing a claim, including the accountant.
Which is what happened in my case. No problems. NW were happy to provide whatever help or info I needed off them with no charge and Abbey were happy to put it all together/speak to HMRC etc.
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