VAT 'compliance visit' from HMRC

**SueEllen** · 12 October 2009, 19:07

If you were sending them lots of money and suddenly stopped they want to know why.

In addition they want to visit your trading address not the registered address.

**dude69** · 12 October 2009, 19:13

Indeed.

I can happily provide them with a stack of invoices, and say 'there you go, take 13% of those, and you'll see I've paid the right amount', but I don't particularly want them then saying 'great, now let's go over your PAYE records' and whatever might take their fancy.

TBH I don't particularly want to meet them.

**SueEllen** · 12 October 2009, 19:29

Originally posted by dude69 View Post

I can happily provide them with a stack of invoices, and say 'there you go, take 13% of those, and you'll see I've paid the right amount', but I don't particularly want them then saying 'great, now let's go over your PAYE records' and whatever might take their fancy.

The VAT man isn't interested in PAYE records.

It's just a case of the computer spitting you out because you paid them a high sum and suddenly paid them nothing.

**malvolio** · 12 October 2009, 23:27

Originally posted by SueEllen View Post

The VAT man isn't interested in PAYE records.

It's just a case of the computer spitting you out because you paid them a high sum and suddenly paid them nothing.

Wrong wrong wrong...

The VAT man and the Revenue man work for the same team these days. Given the number of people on the bench, you can't be the only one to have stopped paying VAT. It is a random inquiry, not a specific one. But...

A VAT inspection can turn into an aspect inquiry can turn into an IR35 one. If you have insurance cover, time to invoke it. If you haven't then it's time to get it just in case (or join the PCG PDQ, which is the better option).

It may be totally innocuous. It may not be. Do you feel lucky?

**dude69** · 13 October 2009, 02:24

Originally posted by malvolio View Post

Wrong wrong wrong...

The VAT man and the Revenue man work for the same team these days. Given the number of people on the bench, you can't be the only one to have stopped paying VAT. It is a random inquiry, not a specific one. But...

A VAT inspection can turn into an aspect inquiry can turn into an IR35 one.

Right, but it's important for people to know their rights. HMRC cannot go 'fishing'. If they ask for a VAT visit, then they should ask for records relevant to VAT. Not PAYE. However, if they ask for records relevant to VAT but are given records that are useful for other things, they can certainly use hem for those other purposes.

"Q If you contact me to tell me you intend to inspect my VAT records, for example, will you extend your inspection to include my income or corporation tax or tax credits affairs once you are on my premises?
A. We will only review the records relating to the tax, duty or tax credit we have told you we will be looking at. If we intend to review a number of taxes, duties or tax credits at the same time we will tell you in advance, and we will give you the opportunity to decline. "

"We will always make it clear to you at the beginning of our inspection, review or enquiry which tax, duty or tax credit we intend to ask questions about. And we will only ask for information that relates to the area we have told you we will be looking into – we will not request information that may only be relevant to another area. But if when we consider the information we have properly obtained we think it may also have a bearing on another area we will pass that information on for immediate or future action. There is no change here – the IR and HMCE have always been able to exchange information they considered would be relevant to the other department."

There are also some rules about holding an inspection at your home, apparently they are only allowed to enter the part of your home you use for business purposes unless you sign a declaration to the contrary. Presumably if you claim anything, including the £2/week 'allowance', they would be asking questions if they've got no where to go.....

**DS23** · 13 October 2009, 08:03

Originally posted by dude69 View Post

Anyone had one of these? Just opened a letter from HMRC asking for them to come round to 'check your VAT returns', and that 'a VAT visit is not a full visit', but the implication that they may very well want to nose around at random....

nope. out of interest - what time frames are mentioned?

**lexington_spurs** · 13 October 2009, 10:28

I posted a similar sort of thing in Feb ...

"To close the thread ..

VAT inspector came, looked at bank statements, and compared with Box 6 figures on all returns to date. Looked at my excel comp of invoices per period and VAT calcs. Drank 1 cup Earl Grey, refused biscuits (smell of rat poison must have been overpowering.)"

**Robot** · 13 October 2009, 10:47

[QUOTE=dude69;971045]Right, but it's important for people to know their rights. HMRC cannot go 'fishing'.

Oh yes they can under Part 2 Sch 36 FA 2008 – New rules from 1 April 2009.

Revenue and VAT officers are being trained on Cross Discipline issues, you may find your VAT officer has a background in PAYE / Revenue investigations and knows very little about VAT.

Be careful what you say and what you give them.

Good luck

Robot

**singhr** · 13 October 2009, 11:00

I had two of them round for a visit to my place and they found a discrepancy of about £1.50 which they said they 'would let me off this time'. All very friendly until they started asking questions about how much stuff cost in my pad/how could I afford the mortgage etc. I asked them if this had anything to do with VAT and they said no, so I asked them to leave if they had finished their business.

VAT 'compliance visit' from HMRC