VAT - Enquiries and penalties

Recently added Tips & Advice

HMRC - 27.08.2020

When will HMRC run out of time to raise an assessment?

Your business has been subject to an enquiry about its returns. It has dragged on, with the officer requesting extra information. The officer must raise an assessment within certain dates, but how do these time limits work in practice?
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VAT ERRORS - 07.07.2020

Avoiding an interest charge for past errors

You have discovered that your business has made supplies of management services for the last five years to an associated company but didn’t charge VAT. How do you correct this problem, and can you avoid an interest charge on the underpaid VAT?
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VAT - 22.06.2020

How to make a successful late VAT claim

Your bookkeeper has found a batch of purchase invoices on which VAT hasn’t been reclaimed. They date back a few years and you think that it may be too late to reclaim the VAT. What is and isn’t allowed?
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VAT CASES - 01.06.2020

HMRC out of time to assess tax underpaid by restaurant

The case. The taxpayers traded as a Chinese restaurant that allegedly suppressed sales on VAT returns submitted between June 2011 and March 2015. HMRC initially assessed underpaid VAT of £158,953, which was reduced to £95,365 following an internal review. HMRC’s assessment was based on on-site observations made about the ratio of cash versus card sales. The officer concluded that half of all cash sales were omitted from the returns. ...
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OVERCHARGED VAT - 01.05.2020

What if you’ve overpaid due to an incorrect rate?

A supplier has been applying 20% VAT to your purchases for the last six years, instead of 5%. Are you liable to pay back the VAT you have overclaimed, and how should you ensure you aren’t out of pocket?
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VAT CASES - 01.05.2020

HMRC could correct overstated zero-rated sales going back four years

The case. The company traded as Hillbilly’s Fried Chicken (H), selling hot food both inside the premises and on a takeaway basis. The issue under appeal was the percentage of cold takeaway sales of coleslaw and cold dips, i.e. zero-rated for VAT purposes, and whether HMRC could assess tax going back one or four years. ...
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VAT - Enquiries and penalties

Most read Tips & Advice

HMRC - 27.08.2020

When will HMRC run out of time to raise an assessment?

Your business has been subject to an enquiry about its returns. It has dragged on, with the officer requesting extra information. The officer must raise an assessment within certain dates, but how do these time limits work in practice?
Read more

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