NewlandFarmServices
Member
- Location
- Selby, N.Yorks
Hi
Has anyone had anything to do with a vat inspection and what is it like.
Has anyone had anything to do with a vat inspection and what is it like.
Vat inspection
- Thread starter NewlandFarmServices
- Start date
wasted years
Member
- Location
- Cumbrian born and bread
I had one , ok really but we are straight , they knocked £50 off, we queried that and they never bothered replying,
ain't life grand?
NewlandFarmServices
Member
- Location
- Selby, N.Yorks
Ok let's hope same applies but don't think it will. They have quiried my latest vat return as it lot higher than normal due to buying new tractor and this must have flagged up so want to investigate and look at few years accounts.
The quarter in which we bought a new tractor, they would not immediately release the refund. They wrote to us asking for a list of our inputs and outputs and the three or four largest invoices underpinning the refund. We sent these off and a couple of weeks later got our refund.
HMRC has procedures in place to flag up and query unusual movements in returns, especially refunds. On the basis of what you say, it is routine and the query will be closed quickly after you submit what is asked for (unless your cheating the system of course!!!
)
NewlandFarmServices
Member
- Location
- Selby, N.Yorks
The quarter in which we bought a new tractor, they would not immediately release the refund. They wrote to us asking for a list of our inputs and outputs and the three or four largest invoices underpinning the refund. We sent these off and a couple of weeks later got our refund.
HMRC has procedures in place to flag up and query unusual movements in returns, especially refunds. On the basis of what you say, it is routine and the query will be closed quickly after you submit what is asked for (unless your cheating the system of course!!!
Yes they rang me yesterday and wanted to visit me even though i said can send you the info if its just the tractor invoice vat thats the issue. They said could see me next Wednesday but i said any sooner as could do with money back and they said Monday morning. So im just getting everything ready for there much welcomed visit!!
d williams
Member
Yes had a big refund due inspector came nice bloke doing his job saw what we had been buying all OK then wanted to see invoices been raised as bank wasn't tallying up as some zero rated picked up on some bed and breakfast cattle asked why no VAT charged I say on accounts advice he said he needed to check this out came back to me saying there should have been vat charged and kept back £10k of refund we then invoiced customer the vat element and he paid it money in a circle
I think government are short money mate been waiting on a tax refund that took a while to get back
Don't worry they can't shoot you what I should say he was only intrested in previous 4 years
d williams
Member
If all OK they will pay within 48hrs
NewlandFarmServices
Member
- Location
- Selby, N.Yorks
Yes i can see why they want to inspect as this figure is different to my normal ones and at the end of the day anyone could put a X figure in and get money back then dissapear so they just checking i guess. Im seeing my accountant on Saturday to get more advice. Just investigations take time and need the vat to help with payments.
tommyurray
Member
Have you got a letter from them detailing what they want to look at don’t let them do a fishing exercise through your whole books , do you have tax investigation insurance if so use it .
livestock 1
Member
I had my first one when I was 15 self employed. He came intimidated me quite a bit, put 3 things down on a piece of paper that I shouldn’t have claimed on but it was ok in the end just deducted. I’ve had 2 more since. Look out for things like fuel for personal use verses business use. Be aware of questions reeling you into these situations. Nothing to worry about at all. Vat HMRC inspections can be triggered to investigate income tax later or other tax. They won’t bother you too much if you’ve claimed stuff you shouldn’t have you will just have to pay it back. Got a mate in tax investigation fraud office who assured me he won’t persue anything under 10k as it’s not worth it
Last edited:
NewlandFarmServices
Member
- Location
- Selby, N.Yorks
Well he rang yesterday and offerered next Wednesday but I said Monday so he said won't have time send letter via post so has emailed it to me. They want see last 2 year books etc plus why I did this big claim on last return. Yes have tax insurance and seeing my accountant on Saturday to go through things.
- Location
- Lancashire, Home of the Deluge
He will suggest you carry on with your work and come back when he is finished,
.............................decline and stay to watch...............makes them uncomfortable........................tell him you have cleared your schedule and are there to answer queries as they arise.......
Acorn
.............................decline and stay to watch...............makes them uncomfortable........................tell him you have cleared your schedule and are there to answer queries as they arise.......
Acorn
Exfarmer
Member
- Location
- Bury St Edmunds
My experience, only had 3 or 4 but be courteous, do offer tea coffee and possibly biscuits. If you are honest they will expect to find an odd minor mistake , but hopefully not anything major.
They are looking for crooks, not honest businessmen who cannot add up. They have a job to do and know there are some serious fraudsters out there.
They will have been alerted to a blip on your claims and a new tractor or such large prurchase can trigfer this. At thr same time they have to justify any check. Do not be surprised if they are aware of your ebay account if you have one, be prepared to be able to explain the difference between business and private trading
They are looking for crooks, not honest businessmen who cannot add up. They have a job to do and know there are some serious fraudsters out there.
They will have been alerted to a blip on your claims and a new tractor or such large prurchase can trigfer this. At thr same time they have to justify any check. Do not be surprised if they are aware of your ebay account if you have one, be prepared to be able to explain the difference between business and private trading
NewlandFarmServices
Member
- Location
- Selby, N.Yorks
Yes I taken day off so can stay to help when needed.
NewlandFarmServices
Member
- Location
- Selby, N.Yorks
Yes iv read some notes on gov website saying if you help them they be more lenient. Well iv made a little mistake in this claim around £60 for fuel for landrover I forgot to put on but wasn't done on purpose so hopefully they can see that. It's the £24k amount that has set trigger off so I guess they doing job just rather not have to many questions lol.
- Location
- East yorks
go ok?
Fowler VF
Member
- Location
- Herefordshire
I always send myself a small invoice, from the business to me, with VAT on it, for Private use of Miscellaneous items. (I do the same for phone, electric and other items) That way, when the Inspector picks up the odd thing, such as an item on an invoice from the local ag supplier that might not be business related you can show that you have attempted to address this. Unless you are going to go through every invoice line by line there will always be the odd thing that creeps in, they know this and they know where to look. ( you know its there, dishwasher tablets, loo rolls, kids toys that got picked up while you picked up the fencing wire and tools!) Best thing is to acknowledge this and show that you have already addressed it. That way once they find that one odd line they tend not to bother crawling through all those invoices so that they can announce that you have claimed £500 of items and you owe the Vat on them. If you openly show that, "just in case" you have already charged yourself £250 plus VAT to cover it off then they usually realise there isn't much point in spending time on it. Its the ones where they "discover" an item that they keep going at, if theres one there must be more! Definitely be nice to them, definitely hang around. Has worked for me for the 4 or 5 inspections I have had.
NewlandFarmServices
Member
- Location
- Selby, N.Yorks
Haha good idea!
NewlandFarmServices
Member
- Location
- Selby, N.Yorks
Yes went fine, no problems. Nice lady was here about a hr as had everything ready and only 1 issue was of bit of concern about some money paid in but found paying in book and that solved the issue. She says will get my money back in 10-14 days!