vat compliance check

[xoggoth]

VAT is not usually a problem for contractors, it's fairly simple and difficult to get too wrong, not all the uncertainties as with tax. Visits not unusual, had one once. I just left him with all the printouts, invoices and receipts. He looked at it for about 20 mins, said that all looks fine and left.

Pretty sure they are not supposed to change the purpose of the visit like that but agree with watch what you say. A problem is that they are trained to put you at your ease and appear such nice people.

[Fred Bloggs]

Fair enough. Hope you don't need it!

Ta!

[malvolio]

It is an outcome I would anticipate that even if my FRS VAT was 100% perfect then Hector could easily poke around looking at other stuff. I have the QDOS IR35 insurance for that eventuality.

Fair enough. Hope you don't need it!

[Fred Bloggs]

It is an outcome I would anticipate that even if my FRS VAT was 100% perfect then Hector could easily poke around looking at other stuff. I have the QDOS IR35 insurance for that eventuality.

[malvolio]

Ermm....

Be very careful what you say. I know of three people recently whose "innocent" VAT inspection has turned into an IR35 investigation, so this is not a trivial problem. If you're in the PCG (and if not, why not ) call them and get their advice. Whatever you do, do not answer anything about contracts or working conditions, get all such questions in writing.

It may sound paranoid, but you really don't want the hassle of a three year investigation that will go nowhere.

[Fred Bloggs]

Yep.

I know someone who was looked at who was on the FRS.

Found out that he hadn't been paying VAT properly.

Thanks, I'm squeaky clean in that respect, well, AFAIK anyway.

[SueEllen]

Does this still happen if (like me) you are on the FRS?

Yep.

I know someone who was looked at who was on the FRS.

Found out that he hadn't been paying VAT properly.

[Fred Bloggs]

Does this still happen if (like me) you are on the FRS?

[LisaContractorUmbrella]

They will need to see that the amount you have filed for VAT can be proved to be correct. With regard to VAT A/C they probably mean the nominal ledger account that records the VAT element of your sales, purchase and cash book ledgers. If you can you should produce a totalled list of transactions which will show everything you have sold (or invoiced for) with its VAT element and a totalled list of everything you have bought with its VAT element. The difference between the VAT elements of your sales and purchases should equal the VAT that you have paid. If you have an accountant they should be able to put together the paperwork that you need; if not, you just need to check that you have complete records e.g. your invoice numbers run concurently.

[beoptima]

thanks

Thanks for all your responses
whenever I sent the vat form filled , I didn't keep a copy of those forms but I have calculations and vat amounts etc..
will it be fine if I just send those details on a sheet of paper along with calculations

thanks

[Troll]

I have recently received a letter from hmrc saying that I need to produce the copy of vat a/c and calculations for couple of quarters as stated in their letter.I have been paying VAT without fail so just want to know if it is normal to do these checks.Also
1.When they say copies of VAT a/c what does that mean ?
2.I don't have copies of VAT forms I have sent them on couple of occassions but have the calculations and of late I'm filing vat online

please suggest

many thanks

Their algorithm has probably flagged you up as a person of interest - i.e. VAT reg date and VAT received so far doesn't tally

Having been through one of these interviews be prepared for some interesting use of VAT technical rules to ensure the exercise results in you paying something to make it worth their while

FYI even my Accountant at the time expressed surprise at their interpretation around certain rules (one of the premium big accountancy firms)

After immediately paying the trifling sum – IIRC it was £300 ish,- they then slapped a penalty charge onto the VAT account (reminded me a bit of the guy who throws his sword onto the payment scales – can’t be arsed googling for the name ) – I was by this time in email contact with the officer and suggested that was a tad harsh to which he immediately backed down and removed the penalty. Being in need of so much money these days, that approach may not now work


So..lube up, bend over and get ready!!

[MarillionFan]

I try and keep all of my accounts/VAT in line with my bank statements.

So for expenses, I compile a monthly statement, then pay myself a cheque to the tune of it, then file the statement.

It will be that sort of thing they are interested in.

[TestMangler]

It's totally normal. Last one I had was a visit where they picked out a couple of quarters from a five year period and went through them in detail. They will want to see incoming and outgoing invoices for these quarters and your spreadsheet of incoming/outgoing. Simple as that really.

If you don't supply all the required info, they will tell you what they need and give you time to produce it. If you owe a small amount (or if thery owe you), it will be sorted at your next return. If you have ****ed up to the tune of more than £2K, they will clap you in irons

I was tulipting bricks before it, but it was a piece of piss to be honest.

HTH.

[beoptima]

I have recently received a letter from hmrc saying that I need to produce the copy of vat a/c and calculations for couple of quarters as stated in their letter.I have been paying VAT without fail so just want to know if it is normal to do these checks.Also
1.When they say copies of VAT a/c what does that mean ?
2.I don't have copies of VAT forms I have sent them on couple of occassions but have the calculations and of late I'm filing vat online

please suggest

many thanks