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Sam
Sam, Accountant
Category: Tax
Satisfied Customers: 13980
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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The HMRC are looking into my recent VaT quarter and have asked

Customer Question

The HMRC are looking into my recent VaT quarter and have asked about an invoice saying they are doing routine checks - I know i owe VAT - what should I do?
Submitted: 3 years ago.
Category: Tax
Expert:  Sam replied 3 years ago.
Hi

Thanks for your question. I am Sam and I am one of the UK tax experts here on Just Answer.

Could you advise what you advised on the VAT return and what the actual position is, and whether this relates to income on which VAT was charged (or should have been charged) or expenses, on which VAT was suffered.

Thanks

Sam
Customer: replied 3 years ago.
Hi Sam
The are a number of invoices that I didn't declare and the HMRC person was querying 1 of them - does one query lead to others? Is this how they work ? Should I for example say I was scatty with that one and pay it following the phone call back to them?
Expert:  Sam replied 3 years ago.
Hi Martyn

Thanks for your response and the additional information.

Just be honest with them, that you made a mistake and omitted them purely in mistake, and then pay what is owed, which may also lead to interest and a penalty (just there are varying levels of the penalty charge according to whether it was merely an oversight or a deliberate attempt to conceal.

This sounds like this was a genuine mistake, so plead that to HMRC VAT office and make good any VAT owed as quickly as possible.

But mistakes are easily made and HMRC know this, but I would come clean about ALL the omissions, as HMRC may ask to review the whole return, at which point you missed your chance to make a full disclosure, thereby allowing them to be more lenient with you.(with the penalty position)
There is no pattern what will determine HMRC to review the whole return for that period, and as we cannot second guess what HMRC know or do not know, its nest just to be honest from the start.

Let me know if you have any further questions.

Thanks

Sam

Customer: replied 3 years ago.
Won't it be obvious to them that it wasn't a mistake when it's so many invoices? (Around 14)
Expert:  Sam replied 3 years ago.
Hi

Thanks for your response

With 14 missing off the return - then you may have a hard time proving that this was not a deliberate attempt to conceal - which I am sure you can appreciate.

Its very likely they are aware of most of the missing information, so you are best coming clean to HMRC and try and offer an explanation as to why you failed to declare so many.

I wish I could offer you a quick fix, and one that would work favourably for you, but anything, other then honesty at the first chance from you, could see this going as far as court if you are not offering up the true position at this first line of enquiry.

I would hate to see this situation turning into a full legal matter for you.

Thanks

Sam



Thanks

Sam



Thanks

Sam
Customer: replied 3 years ago.
Is it worth saying It's very disorganised on my laptop and then pay that one in the hope that it's just that one they are querying?
Expert:  Sam replied 3 years ago.
Hi

If this is the truth - then by all means let them know this. But I would not be doing my job properly if I suggested you just offer up this one invoice - and hope that's the one -
I advise you make a full disclosure of all that you failed to declare and make good the VAT you owe.

Thanks

Sam

Expert:  Sam replied 3 years ago.
HI Martyn

Did you make a decision of how you were going to proceed? Can I be of any further assistance?

Thanks

Sam