We have successfully settled another VAT case and reduced the tax liability from over £4M to zero, for one of our clients.
Our client, calculating and submitting their own VAT returns, had neglected to keep proper export evidence. HMRC conducted a VAT visit and issued them with a protective assessment of over £300,000 and threatened them with over a £4M assessment in total. This would have put the company out of business as HMRC refused them zero-rating.
We, on behalf of our client, took up the case with HMRC and over a period of several months, convinced them (“using other evidence”) that the goods had been exported and HMRC withdrew the assessment(s).
We defeated HMRC’s argument in this instance, though we have now advised our client to keep records that HMRC would accept without the need to go through this process again.
Should you have an inspection from HMRC than please contact us before you have any issues. We can also complete a mock VAT inspection on your business to find any problems that may arise in the future.
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