Are you a business owner ? 🔔🔔 Do alarm bells ring when you hear the words ' VAT inspection' ?
VAT inspections need not send you into a panic if you prepare and do some regular basic housekeeping. It really can be easier than you think. Being open in communications with all parties involved and not being afraid to ask for help will help help you to have a smooth inspection.
Here at Athena Business Services we cannot emphasise enough the importance of keeping accurate invoices and receipts for your business. HMRC will investigate immediately any irregular fluctuations in your VAT liability so keeping on top of your accounting paperwork is critical.
We have helped numerous clients - local to Kings Lynn as well as further afield, with HMRC queries and responded swiftly with paperwork requests as they're presented. Each and every time, to date, we've had successful outcomes.
It is vital to understand the VAT rulings specific to your business sector : Retail, Construction, Catering, Printing, Clothing and many more have their own defining VAT rules. The fines and penalties from HMRC can be hefty without applying these correctly. Along with the man hours needed to delve back into previous month's records.
As long as you are open and fully co-operative then there should be no issues.
It is the responsibility of the business owner to ensure VAT is accounted for correctly on both Inputs and Outputs.
Always contact your Bookkeeper, Accountant or HMRC direct for advice.
So just to recap:
1. Be honest with the VAT Inspector and all parties involved in your inspection.
2. Keep on top of your accounting record keeping.
3. Understand VAT regulations specific to your industry.
4. Always seek advice from the right professional.