The following Value Added Tax guidance note by Tolley provides comprehensive and up to date tax information covering:
This guidance note outlines what HMRC will generally do during a routine VAT inspection. For information on when a visit may be arranged, see the HMRC arranging visit guidance note.
HMRC generally start an inspection by asking a number of questions regarding the activities undertaken by the business. It is important that HMRC obtains a good understanding of the activities performed before they start checking the accuracy of the returns as this will help to reduce the number of queries raised by HMRC during or after the visit.
It would be prudent to ensure that the following people are made available for the visit:
Once HMRC have gone through their list of questions at the start of the visit the following activities will be performed. The activities may not necessarily be performed in this order as each VAT officer conducts their visits differently. However, this list gives an idea of what to expect.
The officer will want to examine annual accounts, preferably a set of audited accounts, but they will review a draft which has been prepared for the business. If these
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