Getting Ready for VAT inspection! Couple questions...

seismicryan

Yeh, when I spoke to the VAT helpline people yesterday they gave me a few pages to read through...

Turns out if the stuff we give to our staff remain the property of the company, then we dont need to account for the VAT... I guess it works the same way as if we bought a printer, we claim back the VAT, and then the printer is an asset of the business.. the products given to and used by the staff are assets of the business and if the staff member leaves the company they have to give them back.. we have got signed letters from each agreeing to this...

So, I'm hoping that everything will be ok.. I only put stuff on the VAT returnds that we are entitled to claim, so I think we will be ok..

I have a list of things I may bring up with the inspector myself to make sure that he see's im not trying to hide anything from them!

Ryan

vaio

crazyguy wrote: »

With 10 years worth of trading never once had a vat inspection,

yep, five years as a sole trader builder in London I had a visit every year.

15 years as a limited engineering company out in the sticks and haven't seen hide nor hair of them.

I'm guessing some profiles attract more attention than others

martindow

seismicryan wrote: »

"The officer will verify late submitted returns

Have you submitted a return after its due date? Maybe this has triggered the inspection.

I agree with the general gist of the thread. Have everything ready, put your hand up for any errors you find when checking through and ask them about things you are not sure about. Like most people they like nothing more than showing off their knowledge!

My experience was that it was very worrying beforehand but the actual inspection was quite painless.

seismicryan

Well I had the inspection today..

I think it was triggured by 2 things...

we had not submitted returns for a few periods then coulght up all at once before starting to do them properly...

and...

we had only been recording sales and purchase in the UK... not worldwide, which accounts for about 90% of our business! I had not realised that if we send something from america to japan that the uk vat office had anything to do with that.. obviously it is included in our accounts and profit is taxed, but as there is no vat being charged or paid by us, we hadn't been including it...we will be now!

I felt pretty nervous through, the officer made me feel on edge the whole time, but except for a mistake on our first VAT return way back at the beginning of 2009, we were actuall fine!

Learned a few things which should allow me to stay perfectly safe in future!

Ryan

JasonLVC

Thanks for the update, glad everything went well.