Self-Assessment Taxpayer

A VAT investigation letter from HMRC can send shockwaves through your business and raise serious concerns. But acting fast makes all the difference.

Once HMRC begins reviewing your VAT returns, any delay can increase the risk of costly penalties, frozen funds, or even prosecution if discrepancies are found. If you’ve received a letter or been contacted about a VAT investigation, speak with our specialist VAT team as soon as possible. We’ll handle all contact with HMRC, defend your case, and guide you towards a fair and swift resolution.

Why HMRC Starts a VAT Assessment

HMRC may open a VAT review for many reasons, some are random, others are triggered by patterns in your returns. Understanding what’s behind the letter helps you respond the right way. Common triggers include:

  • Repeated or large VAT repayment claims
  • Discrepancies between VAT returns and other tax filings
  • Irregularities picked up by HMRC’s automated systems
  • Late or missing returns
  • Industry-specific risk areas, such as construction, hospitality, or retail
  • Anonymous tip-offs

Whatever the reason, an HMRC investigation can escalate quickly if mishandled.

The Risks of Ignoring a VAT Enquiry from HMRC

Ignoring or delaying your response to an HMRC VAT investigation can lead to escalating problems – from costly financial penalties and backdated interest to potential criminal proceedings for suspected fraud. 

HMRC may increase your assessed VAT liabilities, causing serious cash-flow strain and reputational damage that can disrupt your business operations for months. The sooner you seek expert advice, the more control you retain over the process and the better your chances of achieving a fair, efficient resolution.

Resolve your HMRC VAT enquiry with confidence

Contact Us
Kinsella Tax Investigation Specialists

Why Choose KinsellaTax

When it comes to HMRC VAT investigations, experience and discretion matter.

  • Former HMRC investigators on our specialist team
  • Over 35 years of tax investigation expertise
  • Proven success in reducing penalties and closing cases fast
  • 100% confidential and non-judgemental service
  • Nationwide support for individuals and businesses

We’ve handled every kind of HMRC VAT inspection, from simple record checks to complex repayment disputes.

How Our VAT Investigation Service Can Help you

With over 35 years of defending taxpayers, we know exactly how HMRC operates because some of our specialists used to work there. Our approach is calm, structured, and always focused on protecting you.

Initial Assessment & Case Review

We immediately review your HMRC correspondence and advise on the best strategy. Our first priority is to understand the scope of the VAT enquiry so we can act quickly to protect your business and reputation.

Evidence Preparation

Our team gathers and organises all relevant VAT records, ensuring accuracy before submission. We identify potential discrepancies early, helping to prevent avoidable challenges or penalties from HMRC.

HMRC Representation

We communicate directly with HMRC on your behalf, preventing unnecessary pressure or missteps. We identify potential discrepancies early, helping to prevent avoidable challenges or penalties from HMRC.

Penalty Negotiation & Settlement

We aim to minimise any penalties and reach a fair resolution quickly. Using our deep experience with HMRC procedures, we negotiate firmly to secure the best possible financial outcome for you.

Appeals & Tribunal Representation

If matters escalate, our tax experts represent you before the Tax Tribunal to defend your position. We prepare every detail of your case meticulously, ensuring you have strong representation and a clear strategy at every stage.

You never deal with HMRC alone. KinsellaTax is by your side from start to finish.

Contact Us

When a VAT Enquiry Turns Into a Fraud Enquiry (Public Notice 160)

If HMRC suspects deliberate wrongdoing or serious VAT fraud, they may issue a Public Notice 160 (PN160). This notice signals that your case is being handled as a potential criminal investigation, not just a routine VAT review.

A PN160 investigation means HMRC believes there’s evidence of dishonesty, false documentation, or deliberate underreporting. While you’re not legally required to attend an interview, HMRC will expect full cooperation – ideally through a qualified tax investigation specialist.

At KinsellaTax, our former HMRC investigators manage every stage of the process for you. We ensure HMRC follows the law, that your rights are protected under the Police and Criminal Evidence Act (PACE), and that you don’t make statements that could harm your case.

VAT fraud allegations are serious, often carrying significant financial penalties or criminal prosecution. If you’ve received a PN160 letter, contact KinsellaTax immediately. Early expert advice about VAT investigations can make the difference between a manageable disclosure and a damaging prosecution.

What To Do If You Receive an HMRC Investigation Letter

If you’ve received a letter from HMRC about an inspection or investigation, don’t ignore it and don’t face it alone. Acting quickly and strategically can make all the difference in the outcome. Follow these steps right away:

  • Do not contact HMRC directly without professional advice. Even innocent comments can complicate your case.
  • Gather your VAT returns, invoices, and correspondence for the last few years.
  • Seek expert VAT investigation advice immediately to understand what HMRC is looking for and how to respond effectively.

At KinsellaTax, our VAT investigation specialists are available 24 hours a day, 7 days a week on 0800 802 1311. The sooner you reach out, the sooner we can step in, manage communications with HMRC on your behalf, and work to protect your business from costly penalties or prosecution.

Frequently Asked Questions

What is a VAT investigation?

It is an official review by HMRC to check whether your business is paying or reclaiming the correct amount of VAT. These enquiries may involve inspecting records, comparing your VAT returns with your accounts, or questioning irregularities found through HMRC’s risk assessment process.

What triggers an HMRC investigation?

Most investigations are triggered by HMRC’s risk analysis, which flags unusual repayment claims, sudden changes in turnover, or discrepancies between VAT returns and annual accounts. In some cases, a tip-off or association with another company under investigation can also trigger a review.

What happens during an HMRC VAT inspection?

During an inspection, HMRC officers may visit your premises, request copies of your VAT returns, sales and purchase invoices, and examine your accounting systems. They will look for errors, omissions, or signs of deliberate VAT fraud. If they find concerns, the inspection may escalate into a formal investigation.

How far back can HMRC investigate VAT records?

HMRC can normally go back up to 4 years for innocent errors, 6 years for carelessness, and up to 20 years in cases of suspected VAT fraud or deliberate wrongdoing.

Can I appeal against a VAT repayment investigation?

There’s no direct right of appeal against an HMRC VAT repayment investigation, but any request for records must be reasonable and relevant. You have the right to professional representation, and our specialists can ensure HMRC follows proper procedures and that your repayment claim is reviewed fairly.

What should I do if I receive an investigation letter?

Do not respond directly to HMRC before seeking advice. Gather your VAT records and contact a qualified VAT investigation specialist immediately. The earlier you act, the better your chances of protecting your business and avoiding heavy penalties.

Can KinsellaTax help with VAT investigations?

Yes. Our team includes ex-HMRC and ex-Customs officers who have extensive experience handling VAT fraud investigations, including cases involving Public Notice 160. We liaise directly with HMRC on your behalf, ensuring your rights are protected and that you are treated fairly throughout.