The increase in the sophistication and use of data analysis software has enabled HMRC and tax authorities worldwide to increase the number of indirect tax VAT e-audits.
This has led to an increase in, and higher quantum of; assessments, penalties and interest. The use of more automated resources means that HMRC is capable of auditing a greater amount of information from a greater number of businesses.
Even greater care must be taken now with recording and reporting transactions and the application of calculations such as partial exemption. The need for accurate and timely records has never been more important. It’s crucial that the basics of compliance are taken care of, as well as seeking advice and reviews on specific issues.
These issues are summarised here
Please contact us if you feel that your VAT systems need to be checked, or if you have any doubts about the accuracy of your business’ indirect tax reporting.
We offer a full range of reviews, from a straightforward healthcheck to a full report on a business.
As the severe motto has it: Comply or die!