VAT inspections are routine checks done by the HM Revenue & Customs (HMRC). If you have a VAT registered business, you can expect a VAT inspection at some point of time from HMRC. So, it is best to be always prepared to ensure you are spared from penalties imposed by them.

If you are selected for a VAT inspection, HMRC will first send you a letter stating the date for the visit. The main purpose of this inspection is to review your VAT records and ensure whether they are correct or not.

HMRC may send a pre-visit questionnaire to you which if you fill it with the correct details may satisfy their enquiries. Alternatively, if you put incorrect details, it may lead to suspicions which you have to overcome during an inspection.

HMRC will inform you about the officer who will be visiting you at your company so; you can contact the officer to confirm timing of the meeting. If the time is not appropriate for you, you can also request to reschedule the meeting.

During the visit, the officer will ask to see your financial transactions, bank statements, purchase invoices and many other business records for the last three to four years. This is why you need to keep all of your business records safely.

As the officer can also ask you a lot of questions, you need to be prepared with the answers. You can also ask for the questions to be put in writing to ensure you are able to answer him accurately.

It is also important you review your VAT accounting before the inspection to ensure there aren’t any errors. If you do find any errors during your preparation for a VAT visit, you should disclose it to HMRC immediately. As a result of which you will be get opportunities to mitigate any penalties.

If you want assistance with your preparation, you can get in touch with a reliable VAT adviser who can guide you on everything about VAT preparation.