James01 21 Posted January 28, 2019 Afternoon everyone, i received a dreaded VAT compliance letter through today saying they are paying me a visit next month. Been in business for nearly 7 years so I suppose I am due one. For anyone who has experienced one any advise on what I should expect would be great as I have never had one before? Share this post Link to post Share on other sites
Mark101 536 Posted January 28, 2019 This is right up TV's street - popcorn and Coke ready 1 Share this post Link to post Share on other sites
Ocsltd 133 Posted January 28, 2019 Just now, Mark101 said: This is right up TV's street - popcorn and Coke ready Ha, I was just about to right something similar....! Pass the popcorn... Share this post Link to post Share on other sites
Mark101 536 Posted January 28, 2019 Just make their job as simple as possible, neatly filed receipts in chronological order, bank statements in order and all your sales invoices in order and I can't see what you'll have to worry about. DO NOT pull out a shoe box full of crumpled up receipts and I (where possible) avoid any hand written receipts. Share this post Link to post Share on other sites
James01 21 Posted January 28, 2019 They want everything from the past 4 years apparently but everything is filed correctly so that’s no issue but all bank statements are online I won’t be printing off 4 years worth! We do everything by the book so should all be smooth sailing hopefully! Share this post Link to post Share on other sites
trade vet 702 Posted January 28, 2019 13 minutes ago, Mark101 said: This is right up TV's street - popcorn and Coke ready You are wrong guys,VAT inspectors are OK in my experience.They take notes and ask a few questions about your business but if you are unsure of the answer just say ‘I will have to get back to you on that one’.They may have some flavour of the month to charge you extra tax but you don’t find that out until a few weeks later.Someone told me it is presently ‘de minimis rules ‘ which I fail to understand.If you declare everything,you have nothing to worry about.I would suggest that you should get the inspectors direct contact details on commencement of the inspection for record keeping purposes ( However it is if you need to query any additional assessment you may be unhappy with ).They sometimes try it on.I recall being assessed on negative equity finance deal balances and the inspector tried to avoid me when I contacted his office. ( which is within the 2nd biggest office block in the world,DSS Longbenton and less than a mile from our house).I was told it was not open to the public.I subsequently followed procedure and complained to Southampton or somewhere and met him later.The assessments were dropped. Share this post Link to post Share on other sites
umesh 336 Posted January 28, 2019 As said just make sure everthing is place and easy to follow, they are just doing their job. Had my inspections and found them fine as long as you're fine with them, one of them told me he visited an engineering company middle of winter a few years ago, so the owners thought they would be cleaver put in a dark cold corner... he simply said I'll do the inspection at the office and you'll have to bring everthing to me which then took forever and the hassle as he would call the owners to come to the office and went on for week! The power's in their hands. He had booked two days with me in the letter, day one by 1.00pm he said I done and went and thanked me for my assistance and tea ! Just make it easy for them. Share this post Link to post Share on other sites
Stalker 180 Posted January 28, 2019 I’ve just had one, as already stated as long as your paperwork is in order you will be fine. They do like computerised everything too. Share this post Link to post Share on other sites
justina3 518 Posted January 29, 2019 They will pick at random a quarter or two and run the figures themselves to see if they add up per your submitted returns, they also look for the "old" tricks in the book such as cash sales was the deposit included in the full invoice price and the other long list of things common to the car industry. Refunds are often picked up as well to ensure the sums add up this was two points we got pulled on as we didnt give the full refund amount they wanted an explanation as to why. Fuel logs might be looked at, we purchased a lot of red diesel which is 5% vat rated and stands out. The most obvious one is they will be looking at is your lifestyle, a friend of mine not in the car game is being ripped apart at the seams as we speak as his drawings are £20k a year, so the revenue asked him how does he afford to live 3 children a huge house three holidays last year food the list went on, the claimed 2k odd a month doesnt cover his mortgage payments and council tax let alone anything else, the outcome hasnt arrived yet but its clear to say he is in a world of pain. Share this post Link to post Share on other sites
trade vet 702 Posted January 29, 2019 39 minutes ago, justina3 said: They will pick at random a quarter or two and run the figures themselves to see if they add up per your submitted returns, they also look for the "old" tricks in the book such as cash sales was the deposit included in the full invoice price and the other long list of things common to the car industry. Refunds are often picked up as well to ensure the sums add up this was two points we got pulled on as we didnt give the full refund amount they wanted an explanation as to why. Fuel logs might be looked at, we purchased a lot of red diesel which is 5% vat rated and stands out. The most obvious one is they will be looking at is your lifestyle, a friend of mine not in the car game is being ripped apart at the seams as we speak as his drawings are £20k a year, so the revenue asked him how does he afford to live 3 children a huge house three holidays last year food the list went on, the claimed 2k odd a month doesnt cover his mortgage payments and council tax let alone anything else, the outcome hasnt arrived yet but its clear to say he is in a world of pain. Excellent advice Justin.Lifestyle,I know a trader who is the tightest guy I have ever met.Nice house but low personal drawings from his business.His books are spot on but they were suspicious.They actually went to his home and went through his wife’s wardrobe.This was a long time ago...Sounds like your friend is in deep shit. Share this post Link to post Share on other sites
MrC 142 Posted January 29, 2019 13 hours ago, trade vet said: They actually went to his home and went through his wife’s wardrobe Straight in to the Knicker draw 1 Share this post Link to post Share on other sites
