Juggling VAT in your business can be difficult. Sometimes things go wrong and an investigation is launched into your business affairs.

HMRC VAT Investigation In a VAT investigation, HMRC can now go back 20 years to recover VAT lost due to criminal or civil VAT fraud.

HMRC have powers to arrest, without a warrant, anyone suspected of criminal VAT fraud or using false documents (Value Added Tax Act 1994 S.72 (9)).

Assurance was given that this power would only be exercised by specialist investigators and in the most serious cases.

Part of HMRC’s review of powers has sought views on applying the relevant provision in the Police and Criminal Evidence Act 1984 (PACE) across all of its activities.

Changes introduced in the Finance Act 2007 gave trained officers harmonised powers to apply for search warrants, production order and powers of arrest across all areas of taxes. All of which are subject to important safeguards which attach to criminal investigations generally.

The statutory recordkeeping requirements contained in the Finance Act 2008 sch.37 are supported by the information powers included under sch.36 and they apply to all taxes administered by HMRC including VAT.

There is no appeal against HMRC’s request to inspect the person’s records but the request would have to be reasonable.

This is a very complicated field, especially since the Finance Act of 2008.

What Can Trigger An HMRC VAT Investigation?

The Revenue carry out routine inspections to make sure that you are paying the correct amount of VAT. This can trigger an enquiry.

They may be random but also occur due to information received which may indicate there is something wrong with your VAT records. This could instigate an inspector to contact you from HMRC.

You might also face an inspection if a company associated with you is under Investigation, and has been found to have irregularities in their records or tax returns.

HMRC may send you their queries in writing or in the form of a short VAT questionnaire instead.

 

Enter KinsellaTax, Your VAT Investigation team

An enquiry like this can lead to a prosecution, so it is important to get help from an experienced expert as quickly as possible.

Our team consists of ex-Inland Revenue officers and ex-Customs and Excise staff who are experienced in any VAT related matter.

Our dedicated experts are here to make sure HMRC treat you fairly.

For more information pick up the phone and call one of our experts on 0800 471 4546.

 

VAT Fraud Investigations

If a letter from HMRC has landed on your doorstep quoting ‘Public Notice 160’ you could be in serious trouble and suspected of VAT Fraud.

VAT fraud investigations HMRC will issue a PN 160 VAT investigation when they suspect that serious misconduct or VAT fraud has occurred.

You could receive a charge of dishonesty.

Professionals, such as accountants or lawyers, cannot afford the stigma of this type, especially if they belong to professional bodies where complaints can be made about whether they have acted professionally or not.

Although you do not have to attend an HMRC meeting under a PN 160, HM Revenue & Costoms expect you to fully co-operate with them.

KinsellaTax do not allow clients to meet with HMRC tax inspectors during a tax investigation unless they are legally required to do so.

We believe that HMRC meetings add additional stress to an already extremely worrying time.

We will always fully co-operate with HMRC on a clients’ behalf. Providing that the information HMRC request is necessary and they are permitted by law to ask for it.

Our experts know your rights and we will fight to make sure you are treated fairly and courteously throughout.

VAT investigations are serious and anyone undergoing this by HMRC should have strong and reliable representation from the outset.

If you think HMRC suspects you of VAT fraud, or you have received a letter – contact an expert IMMEDIATELY.

To put your mind at rest call KinsellaTax on 0800 471 4546 to speak to one of our many experts.

Below we outline what could happen during VAT Investigations:

The enquiry time has been extended to 20 years through a failure to register or the unauthorised use of invoices.

HMRC have powers to arrest, without a warrant anyone suspected of criminal VAT fraud. This includes using false documents (Value Added Tax Act 1994 S.72 (9)).

Assurance was given that this power would only be exercised by specialist investigators.

Part of HMRC’s review of powers has sought views on applying the relevant provision in the Police and Criminal Evidence Act 1984 (PACE) across all of its activities.

Changes introduced in the Finance Act 2007 give trained officers harmonised powers to apply for search warrants. These include production order and powers of arrest across all areas of taxes. All of these are subject to safeguards which attach to criminal investigations generally.

The statutory recordkeeping requirements contained in the Finance Act 2008 sch.37 are supported by the information powers included under sch.36. They apply to all taxes administered by HMRC including VAT.

There is no appeal against HMRC’s request to inspect the person’s records but the request would have to be reasonable.

VAT fraud investigation is a very complicated field, especially with the new Finance Act 2008.

KinsellaTax will deal with your investigation to avoid possible penalties and criminal prosecutions.

If you are currently under VAT Investigation you need to contact KinsellaTax NOW on 0800 471 4546.

Further reading:

What is Value Added Tax (VAT)

Powers Relating To Vat

Vat Inspections

Obligations Of A VAT Registered Person

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