A VAT review is an in-depth examination of a business's VAT liabilities and procedures. It’s a specialised assessment to ensure full compliance with the constantly changing landscape of VAT rules and legislation.
Benefits of a VAT Review
- Compliance: Ensures you meet all legal obligations, minimising the risk of expensive penalties from HMRC.
- Cost-efficiency: Identifies areas where VAT recovery can be maximised.
- HMRC VAT enquiry/inspection readiness: Prepares you for any HMRC investigations - particularly important given HMRC’s harsh penalties for inaccuracies.
Key considerations
Some of the issues we’ll consider are as follows – please note that the below isn’t an exhaustive list and varies depending on your industry sector:
- Are you VAT registered? Are there advantages to voluntarily registering if you are not? Is it possible you’re not required to be registered for VAT?
- If VAT registered, is the VAT treatment of your income correct?
- Is VAT recovery on costs correct and optimised? Is it possible you are over-recovering VAT if partly exempt?
- Do you have any ‘non-business’ activities upon which you incur VAT on, or can recover VAT on where you don’t?
- What has the impact of the UK leaving the European Union been on your business. Have the changes to VAT rules been properly implemented?
- Is your business involved in some of the complex areas of VAT, such as financial services, real estate, building and construction, sale of insurance or corporate finance?
- Are you a regular VAT repayment trader – i.e., do you obtain VAT repayments from HMRC? Is all in place to prevent challenge from HMRC and ensure efficiency of VAT repayments being made by HMRC?
- Are Bad Debt Relief provisions correctly implemented?
- What other items do you recover VAT on – i.e. company cars, car mileage, employee expenses etc. Is it recovered correctly?
- Is the business involved in raising finance for new ventures? How is VAT on costs such as professional fees treated? Is the VAT recovered? Can it be where it is not, with a more efficient VAT structure.
- Do you make a mixture of VATable and exempt supplies? And are you using the most efficient partial exemption method, to maximise your input VAT recovery?
- Are you a local authority, a school, provider of medical services? Are you charging VAT where necessary and recovering VAT correctly?
- Are you aware of any Capital Goods Scheme adjustments that are required on property acquisitions or refurbishments, and ‘change in use’ adjustments?
What can we do for you?
The Lubbock Fine VAT review aims to investigate your VAT liabilities and procedures, ensuring you’re compliant with the ever-changing rules and legislation. This not only maximises your VAT efficiencies but also places you in a strong position during any HMRC enquiries.
Lubbock Fine may already be auditing your financial statements and while this ensures your financial records are accurate, it does not extend to a review of your VAT liabilities. This is a separate and important part of your tax compliance and your businesses financial well-being, this being the core focus of our VAT review.
Deliverables
The outcome of our VAT review will be a comprehensive report featuring:
- An ‘Executive Summary’, setting out our recommendations.
- An analysis of your VAT liabilities from a legislative standpoint.
- Advice regarding any potential disclosures, if applicable (both advantageous and otherwise)
Our fees
Our approach to fees is based on the time spent. However, to avoid unexpected costs, we'll agree an estimated fee in advance, which will be specific to your industry area and the scope of our review.
How can we help?
For a more detailed discussion, we’re happy to offer a free of charge initial consultation – either in person or via call to discuss your specific VAT matters and concerns.
Please contact our VAT Partner, Jas Dhillon (jaspaldhillon@lubbockfine.co.uk) or VAT Associate Director, Sharon Parker (sharonparker@lubbockfine.co.uk) to set up an initial discussion.
