VAT health check

Financial service group undertake a VAT health check

VAT health check

Case Study12th Aug 2020

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Our client 

There was a requirement for a financial service group of companies to undertake a VAT health check. The companies in the group were separately VAT registered. 

Our Approach 

  • Carry out a review to confirm the existing VAT structure as the most efficient 
  • Review the client’s partial exemption method and calculations 
  • Reviewed the groups AP processes to provide assurance that existing processes were robust 

The Outcome 

  • Identified one business using an unapproved partial exemption special method which resulted in an excessive VAT restriction 
  • Submitted an error correction notification to HMRC recalculating the VAT recovery using the standard method 
  • Identified another business was using an incorrect VAT treatment. Then submitted an application for a non-statutory clearance to HMRC 
  • Secured additional recoveries doubling the previous residual recovery 

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