Are VAT inspectors as bad as I hear? Are they human? Can they close down your business and seize your goods and chatels? They want to come and inspect my books.
2006-07-12 13:27:27 · 10 answers · asked by sparky 2 in Business & Finance ➔ Taxes ➔ United Kingdom
You should not be scared of an inspection as long as:
a)you have not done anything fraudulent; and
b)you have not done anything innocently wrong.
In regards to b), many small businesses can get into problems with the VAT man as they do not really understand the complexities of the system. If you have checked up on the rules and regs and reporting requirements then you hopefully would be fine. Also don’t necessarily rely on the words of an accountant as VAT is not normally one of their favourite areas.
If the taxman does find a problem he will normally try and point you in the right direction and show you where you are going wrong. If VAT is due to HMRC he will raise an assessment, however, he/she will also advise any area where you maybe able to recover VAT.
Top tips:
Be civil and courteous to the inspector.
Be prepared and make his life easier, have everything in an ordered manner.
Put him in a comfortable room and keep him refreshed.
2006-07-14 03:13:24 · answer #1 · answered by Jim 4 · 3⤊ 0⤋
Not nearly as bad as in the past.
There is now legislation that forces VAT inspectors to try to help small businesses rather than impose penalties. Be honest, show them your back up figures and all should be well.
Most businesses have a VAT inspection every 6 years or so - probably just a routine one.
2006-07-13 18:13:28 · answer #2 · answered by Flick W 2 · 0⤊ 0⤋
After having had several VAT inspections and coming through relatively clean, I have one major suggestion to make. VAT Inpectors will go through your books until they find at least one mistake.
I have always given them something glaringly obvious to pull me up on (albeit very minor) and use this to talk about other aspects of VAT which detracts them slightly from my own books.
Make sure you give them copious cups of tea/coffee but don't be too obsequious or they might see through you.
Just be civil and honest - they're only doing a job.
Start getting shitty with them and boy, have you got a problem!!
2006-07-14 07:00:56 · answer #3 · answered by steve 2 · 0⤊ 0⤋
No but it is something to prepare for. Make sure that when he says "could you show me the receipt for this transaction here for two pounds seventy nine at Reading service station on the 11th of April" you can pull out the damn receipt. If it's hollow when he taps it, he will crack it open. Co-operate fully; he may give you plenty of useful advice if he decides you're basically your average legit-but-confused punter who makes the odd very minor mistake. But don't expect mastermind to show up.
2006-07-12 20:37:12 · answer #4 · answered by wild_eep 6 · 0⤊ 0⤋
Depends. Do you claim VAT back on non-business-related expenses?
2006-07-12 20:33:14 · answer #5 · answered by Burnsie 4 · 0⤊ 0⤋
vat inspectors are human lol..if you have a clear concience and have a good book-keeping system, properly documented then you have nothing to fear
2006-07-15 12:44:20 · answer #6 · answered by ~Lez~ 2 · 0⤊ 0⤋
Yes. The taxman cometh.
2006-07-12 22:01:29 · answer #7 · answered by mehboobahmad 2 · 0⤊ 0⤋
Be afraid.
Be very afraid. Lol
2006-07-12 20:38:31 · answer #8 · answered by eireblood2 4 · 0⤊ 0⤋
If you have done nothing worng, then you have nothing to fear.....but if you have cooked the books, then.....opps!
2006-07-12 20:31:11 · answer #9 · answered by jack 5 · 0⤊ 0⤋
Only if yr dodgy.
2006-07-12 20:33:25 · answer #10 · answered by Andy C 2 · 0⤊ 0⤋