VAT Health Checks


VAT Health Checks

A pro-active VAT review can provide comfort and reassurance to a business that it is paying the right tax at the right time. Often, a business wants to make sure that it is accounting for your VAT correctly even when not expecting an HMRC visit.

We are happy to review your VAT accounting systems and records and will identify any areas of weakness within your system, which will highlight transactions that may have been completed incorrectly or areas where you could possibly save VAT. We aim to identify VAT problems and correct them before they become costly problems and to keep the risk of penalties at a minimum.

Choose us for VAT Health Checks

Our VAT health check will consider the VAT implications of:

•    Structure of the business,
•    Income streams, should all your products or services carry VAT?
•    Purchases, should all your suppliers actually charge you VAT, do you use all available HMRC dispensations to remove your liability?
•    Approach to VAT recovery, is all the VAT you incur reclaimable? Are you due a repayment?
•    Partial exemption method review, application of de-minimis provisions and annual calculations, as necessary.
•    Processes and procedures, such as are you ensuring that you pay the least amount of VAT as possible as late as possible?

If you are getting your VAT wrong an early voluntary disclosure would reduce the level of any penalty. As HMRC now base penalties on the taxpayer’s behaviour a VAT health check is evidence that a business is taking ‘reasonable care’ in relation to VAT compliance, which in turn could lead to mitigation of penalties.

A VAT health check requires that we fully understand the activities carried out by your business and will usually require a meeting on site. However, it is always possible to perform remote VAT health checks.

At the end of the process, a detailed report is produced highlighting areas of concern and potential opportunities for VAT savings. Although this review is not a full audit of the VAT records of a business it provides a detailed overview of risk areas that can then be further examined as necessary and used to develop a sensible strategy for tackling any issues.


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