Electron VAT Bolton - Specialist VAT Consultants Manchester Northwest UK
“VAT IS A SELF-ASSESSING TAX AND IT IS YOUR RESPONSIBILITY TO GET IT RIGHT” HMRC.Electron VAT Consultancy has a proven track record of both assisting clients with VAT planning and also getting results when they are faced with either VAT assessments or tax investigations.
Since the merger of HM Customs and Excise with the Inland Revenue there have been significant changes in monitoring the compliance of VAT registered businesses. Visit selection is now based on the risk that a business poses to the revenue collected on behalf of The Treasury i.e. if a business is visited it is seen to have a risk, and HMRC usually has to have reasons to support that perceived risk.
In our experience, as VAT consultants, the administration of VAT by HMRC has never been more draconian. The reasons for this are as follows:
• The “so-called” risk based approach to selecting a business to be inspected means that there is pressure on the officer to find an error when they make a visit. This can result in VAT assessments that may contain mistakes.
• The new penalty regime means that errors found on more recent VAT returns can be subject to a penalty of up to 100% without dishonesty having to be shown. Interest is also applied.
• The new Tax Tribunal system means that the appellant usually has to lodge the disputed VAT with HMRC in advance of the hearing, and it is unlikely that they will be awarded costs even if successful. This has been a deterrent to a number of smaller businesses and it is our opinion that HMRC has taken advantage of this in their reviews.
• The mechanism for making a complaint against HMRC that they have previously misdirected a taxpayer has changed to the extent that it is virtually impossible to prove otherwise.
For VAT assessments we have found that an informed letter to the HMRC internal review team which contains key points, and that refers to the relevant legislation, can produce results without the need to proceed to the Tax Tribunal.
Our services as VAT consultants can include general advice, retentions, sub-contracting and informal partnerships. Ultimately, the aim of Electron VAT Consultancy is to serve the customer and we have a fantastic record of repeat business.