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VAT Training - Brand New Seminar - VAT Visits and Investigations


Coping with VAT Visits and Investigations

Maximising Your Foreign VAT Reclaims
The Essentials of UK VAT
The Essential Guide to UK VAT and International Trade
The Essential Guide to UK VAT and International Services
The Role of a Company Secretary in the 21st Century
The Essential Duties of a Company Director
The Essentials of Employment Law
Are You Ready For RTI?
Understanding Financial Information
The Essential Guide to Import Procedures and Controls NEW

Satisfied Customers - Find out more...

Would you know what to do if you have disputed VAT liabilities?

Robin Simpson of MazarsRobin Simpson delivered his first presentation of Coping with VAT Visits and Investigations for UK Training recently - the seminar was a huge success. I was fascinated by one of his anecdotes from his vast experience of helping companies resolve VAT disputes with HMRC. He spoke about the lessons to be learnt from a company that set out to be difficult with HMRC when a VAT visit was arranged.

Robin explained that the company invited a VAT officer to a very muddy and isolated site in an office with no heating on a freezing day in February.

It was of no great surprise to hear that the officer only stayed a short time and asked for the VAT records to be properly compiled and made available for inspection at a more suitable location. Robin said that the officer gave a reasonable period of time to provide the information and amazingly the company continued to be difficult.

Robin explained that HMRC sent a letter outlining that based on the information they had collected that an assessment for 350,000 would be issued and, due to the lack of cooperation, suggested penalties of 280,000.

This is when Robin got involved. He invited the VAT officer to his office, treated them well and assured them that the company did want to comply. I was impressed with the outcome - the assessment was reduced to 50,000 and the penalty was removed, a saving of 580,000.

Robin explained that it was not simple. The directors of the company needed a lot of coaxing and guidance. It took Robin a lot of time negotiating with HMRC and although the VAT liability was reduced and the penalty dropped the client incurred increased professional fees and their credibility with HMRC was destroyed. The company now has a high risk rating with HMRC and will get annual visits for the next few years.

The lessons are simple:

  • you should always cooperate with HMRC, despite how inconvenient it might be; and
  • if you have disputed VAT liabilities and you do not have the necessary skills to handle the situation with HMRC you should seek professional advice.

Robin will be presenting Coping with VAT Visits and Investigations in Leeds on 28th May and in London on 14th June.

Stephen Smith
Managing Director
UK Training (Worldwide) Limited

UK Training (Worldwide) Limited is registered in England and Wales. Registration number: 2695623.
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