VAT Inspection

[Pickled Piper]

I run a one man service company that provides consultancy business services either on a clients site or in more recent years I have been using an office at home.

I got a call from Customs and Excise informing me that they wanted to do a VAT inspection at my registered place of business, my home.

Can anybody advise how I should prepare? My books are in order and I don't have anything to hide. I have heard lots of horror stories about VAT inspections and would like to know from any of you in similar situations that have experienced an inspection.

Thanks in advance.

pp

[Eric Mc]

Just ensure that you have all the supporting records behind the figures of the VAT returns you prepared over the past three years. Be polite to the Inspector and give them what they want. Don't engage in too much idle chit-chat and don't be over effusive about your business. Only amswer queries raised by the VAT Inspector.

Depending on how you feel about things, you might consider having your accountant there to assist in answering any questions raised by the Inpsector. At the very least, alert your accountant to the fact that you are going to have a visit and try to arrange that he/she can be contactable on the phone whilst the Inspector is on your premises.

[Red V8]

What Eric said, plus make sure your business expenses are in good order... they'll look here.

[Pickled Piper]

Cheers guys.

pp

[stumartin]

as above, and maybe do just a little bit of wee in their tea

Seriously, in your boots I'd want to have someone actually present who has experience of attending inspections, whether this be your accountant, lawyer or a colleague of either. Inspections can be mundane, tedious affairs, however I would want to have an expert on my side in case anything cropped up.

[jconsta6]

Had one about 2 months ago.

I, like most people, had nothing to hide, but obviously being as I'd been running a business for 6 years and never had an inspection was worried that I may have genuinely got something wrong over the years.

All went well and like previously said, just have everything to hand including computerised records etc.

He had some queries as I'd made a few mistakes, but they were mistakes that made the figures look wrong as opposed to them being wrong, so was quickly sorted.

Hope all goes well, and lots of tea and biscuits don't hurt either

Cheers,

JC

[superlightr]

I had to pay notional tax on a sum that was not due but should have been paid and then would have been refunded back to us as it was not due with interest to us. As we paid them nothing they demanded the interest on the first part.

When queried that as the tax was not actually due the interst I had to pay would have been zeroed by the interest they would have paid back to me when they worked out the whole tax was not due in the first place. so we are squared away?

No- still had to pay intrerst on tax I did not owe but should have paid and then would have paid back the interst back to me.

Doh,

We have an inspection about every 2-3 years for another form of tax, the lovley person from the IR spend a day with me. fantastic fun. They are so humours and joyus people I so wish they could find the time to visit me more often......