HMRC Check Of VAT Return - Flat Rate Scheme

[jk3838]

Over and under payments of a few pounds shouldn't trigger an investigation. I was told this when I went on a VAT course which they use to do.

As per my original post reply, I think it was the purchases over £2k and the wrong input figure that triggered mine, NOT the £12 overpay

[SueEllen]

don't worry. I think it is triggered when you have a vat period(s) where something unusual happens

I had this, and the periods they wanted to look at were two where I'd made over £2000 purchases and one where I'd put the wrong input figure in and then called to correct it immediately (I realized 20 seconds after hitting 'send' but you can't recall a submitted form)

They wrote and asked for some paperwork and figures

I sent in everything they wanted, then they came back asking for some more details and a missing receipt (I had to get a copy of a receipt that I'd lost (we were mid house move) as they wouldn't accept the bank statement showing we'd paid a certain company a certain amount on a certain date

A bit of a worrying wait and then they wrote to me after a few more weeks to say I'd over paid by £12 and I could knock it off next VAT payment (which I didn't bother doing as I didn't want a further trigger)

It's all a bit worrying, as they send you the thing where they tell you the muiltiples of VAT owing you may be asked to pay on top of what you owe if you have done something wrong 'on purpose' but if you do things 'by the book' they will accept a genuine mistake if they find one

Just don't dig a bigger hole by 'creating' any evidence you don't have If you don't have it tell them you don't

Over and under payments of a few pounds shouldn't trigger an investigation. I was told this when I went on a VAT course which they use to do.

[jk3838]

don't worry. I think it is triggered when you have a vat period(s) where something unusual happens

I had this, and the periods they wanted to look at were two where I'd made over £2000 purchases and one where I'd put the wrong input figure in and then called to correct it immediately (I realized 20 seconds after hitting 'send' but you can't recall a submitted form)

They wrote and asked for some paperwork and figures

I sent in everything they wanted, then they came back asking for some more details and a missing receipt (I had to get a copy of a receipt that I'd lost (we were mid house move) as they wouldn't accept the bank statement showing we'd paid a certain company a certain amount on a certain date

A bit of a worrying wait and then they wrote to me after a few more weeks to say I'd over paid by £12 and I could knock it off next VAT payment (which I didn't bother doing as I didn't want a further trigger)

It's all a bit worrying, as they send you the thing where they tell you the muiltiples of VAT owing you may be asked to pay on top of what you owe if you have done something wrong 'on purpose' but if you do things 'by the book' they will accept a genuine mistake if they find one

Just don't dig a bigger hole by 'creating' any evidence you don't have If you don't have it tell them you don't

[TheFaQQer]

I would ring the IPSE tax advice line, on the presumption that you're an IPSE+ member, and get them to deal with it for you. It's what it's there for.

[TykeUK]

I had one when I had a purchase > £2,000. Supplied the information they asked for and it was closed very quickly.

[meanttobeworking]

I had one of these in my first year or so of trading. It coincided with a quarter in which my VAT payment was reduced quite a bit due to a >£2,000 purchase, although that might have been coincidence. I just sent the relevant information to PCG / IPSE and they sorted it all out. Everything was in order so it was sorted very quickly. Didn't lead to anything else.

[Maslins]

The info you've provided doesn't sound like something I'd expect to trigger a VAT inspection. Possibly there's more to it than your OP.

I wouldn't be overly concerned. Discuss with your accountant, especially the list of things HMRC are presumably asking to see, and respond.

Most VAT inspections we've seen end without any adjustments to the figures. Often HMRC don't know that anything's wrong, but perhaps some slight inconsistency has triggered it. This compares to most SA enquiries/checks we see where HMRC are virtually always right. Typically for those they've got additional information that the client forgot to tell us about (eg another little PAYE job they briefly had, benefit in kind they forgot about, they thought they'd paid off their student loan when actually they hadn't etc).

[Darren at Fox-Bartfield]

VAT

Could be either a simple random selection or a change in the calculations/rates that have been reported on previous returns. If all in order and correct rates have been used then you've nothing to worry about.

[claretfan]

Just returned back from holiday to find a nasty brown envelope with a letter inside saying HMRC want to check my latest VAT flat rate scheme return

Anybody had one of these and know how they are triggered ? and are they random as they say, or the start of further inspections ?

Only thing different between my previous returns and this one is a change of %age to 16.5 (the new standard one) and that due to a late payment, this latest return covered 4 months worth of invoices (the last one covered 2 months)

Thanks