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| *Ostroff, Fair and Company>>>United Kingdom Taxes |
Is a VAT inspection something to be scared of? |
Are VAT inspectors as bad as I hear? Are they human? Can they close down your business and seize your goods and chatels? They want to come and inspect my books. You should not be scared of an inspection as long as: a)you have not done anything fraudulent; and b)you have not done anything innocently wrong. In regards to b), many small businesses can get into problems with the VAT man as they do not really understand the complexities of the system. If you have checked up on the rules and regs and reporting requirements then you hopefully would be fine. Also don鈥檛 necessarily rely on the words of an accountant as VAT is not normally one of their favourite areas. If the taxman does find a problem he will normally try and point you in the right direction and show you where you are going wrong. If VAT is due to HMRC he will raise an assessment, however, he/she will also advise any area where you maybe able to recover VAT. Top tips: Be civil and courteous to the inspector. Be prepared and make his life easier, have everything in an ordered manner. Put him in a comfortable room and keep him refreshed. If you have done nothing worng, then you have nothing to fear.....but if you have cooked the books, then.....opps! Depends. Do you claim VAT back on non-business-related expenses? Only if yr dodgy. No but it is something to prepare for. Make sure that when he says "could you show me the receipt for this transaction here for two pounds seventy nine at Reading service station on the 11th of April" you can pull out the damn receipt. If it's hollow when he taps it, he will crack it open. Co-operate fully; he may give you plenty of useful advice if he decides you're basically your average legit-but-confused punter who makes the odd very minor mistake. But don't expect mastermind to show up. Be afraid. Be very afraid. Lol Yes. The taxman cometh. |
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