16th November 2023
Are you prepared for an upcoming HMRC VAT inspection?
Many organisations in the public sector are receiving notice from HMRC that they will be subject to a VAT inspection. Given the complexity of VAT accounting and the risk of non-compliance, PSTAX is here to provide you with tailored support.
Our unique experience has granted us the latest insight into HMRC’s current areas of focus for the public sector, HMRC VAT compliance processes, and risk identification.
An HMRC Pre-Inspection Service
Our VAT Readiness Review comprises two parts:
1. VAT return analysis
This identifies data entries and trends known to trigger HMRC VAT inspections.
2. VAT risk identifier
A comprehensive questionnaire encompassing VAT compliance issues and sector-specific risks.
Benefits of our VAT Readiness Review
VAT Return Analysis report
This report will detail entries likely to trigger a targeted compliance check or questions during a routine VAT inspection. In addition, we will recommend compliance checks for the Council to undertake.
VAT Risk Identifier report
After reviewing the completed questionnaire, we will provide you with an RAG report identifying and prioritising risk areas for the Council.
Alongside the Amber and Red ratings, we will include recommended compliance checks and next steps.
Target resource to risk
Both reports enable VAT resources to be targeted effectively to areas of perceived risk in preparation for a VAT inspection.
Demonstrate reasonable care
By taking a proactive approach to VAT compliance, the Council can demonstrate it is taking reasonable care in tax administration. This will help mitigate penalties if VAT errors are identified.
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