VAT investigation

VAT inspection results in penalty challenge

VAT investigation

Case Study5th May 2020

Related services

Our Client 

A business received a Notice of Assessment from HMRC following a VAT inspection. HMRC had issued a penalty of 30% of the assessment. 

Our Approach 

  • Completed a full review of the assessment 
  • Submitted a request for an independent review of the assessment 
  • Sought to mitigate the level of penalty imposed by HMRC  
  • Allowed the business to focus on managing day to day operations

The Outcome 

  • HMRC reduced the VAT inspection penalty to 15% but following recommendations from AAB in improvements to the client’s VAT processes, HMRC suspended the penalty entirely 
  • HMRC reduced the assessment for the element that had been challenged 

Related services

Sign up for the latest industry insights

  1. Blog23rd Apr 2024

    Alistair Duncan, Indirect Tax Partner, professional headshot

    Potential VAT Refund Fraud – Are Your Bank Details Correct?

    We have been alerted to a number of cases where taxpayers’ bank account details have been amended without their knowledge.  This fraud involves the submission of a letter or form VAT 484 purporting to be from the taxpayer requesting that…

    By Alistair Duncan

    View more

  2. Blog17th Aug 2023

    Alistair Duncan, Indirect Tax Partner, professional headshot

    VAT- A Guide For Sole Traders

    When many people think of VAT, they think of the extra charge on clothes, petrol and everyday items. However, those that are self-employed and/or run a business, may be required to get involved with VAT more than they would otherwise…

    By Alistair Duncan

    View more

  3. Blog6th Feb 2023

    Alistair Duncan, Indirect Tax Partner, professional headshot

    A Golden Anniversary for the “Simple Tax”

    1973 was a momentous year! Starting on a Monday, 1973 kicked off with a “Long Haired Lover from Liverpool.”  In cinema, The Godfather won the Oscar for Best Picture.  Whilst in politics, Roe v Wade was decided by the Supreme…

    By Alistair Duncan

    View more

  4. Blog8th Dec 2022

    Alistair Duncan, Indirect Tax Partner, professional headshot

    Say hello to HMRC’s new VAT penalty & interest rules

    The current default surcharge regime for VAT has often come in for criticism, with the penalties applied being disproportionate to the length of delay. From 1st January 2023, a new VAT penalty regime will replace the outgoing default surcharge system.…

    By Alistair Duncan

    View more