A newly published (18 September 2024) set of guidelines: Guidelines for Compliance GfC8 are aimed at helping businesses with VAT compliance controls and set out what HMRC considers good practice for accounting and compliance processes.

HMRC says that these Guidelines for Compliance (GfC) set out its recommended approach and are designed to help businesses understand HMRC expectations as they plan, carry out, and review the accounting and compliance processes that ensure VAT is accurately declared by a business.

The guide covers:

Purpose, scope and audience

General approach to VAT compliance controls

Order to cash

Procure to pay

Employee expenses

Record to report

VAT reporting

VAT reporting – manual adjustments

Outsourcing

Next steps — correcting errors and guidance

The guidelines are aimed at those responsible for the governance, controls, processing and submitting of the VAT return. Such roles may include:

• VAT and tax managers
• finance and IT professionals involved in VAT and tax
• senior management with VAT and tax oversight, such as the designated senior accounting officer
• VAT specialists who process and submit returns, whether in-house or within third party providers including shared service centres
• agents