Chartered Management Accountants and Consultancy Services for Small and Medium Sized Businesses

Challenging the VAT Inspector

Aldred Consultancy have just successfully represented a client who was about to receive an additional VAT assessment following a VAT compliance visit.

HMRC tried to assess the client for an additional £1700 and potential penalties, for supposedly incorrectly recovering VAT on hotel accommodation, for sub-contractors who were working on a contract, away from home.

We questioned the basis for this decision, and the Inspector agreed to allow us time to research the matter further, and he said he would also review the case, back at HMRC’s offices.

We obtained information from HMRC’s own website, that clearly contradicted, the Inspector’s reasoning. After an exchange of emails and a brief telephone contact, the Inspector agreed that the VAT had been correctly recovered, and that the additional assessment would be quashed, completely.

The case only goes to prove again, that VAT assessments should be challenged where the Inspector cannot state the actual legal basis, for making the assessment. Always attempt to get the Inspector to review the matter, without making an assessment, before the visit is concluded. Do not agree with an assessment you clearly believe is wrong.

You do have rights of appeal.

Contact us for further information on how we can assist when a VAT visit occurs.


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contact Kenneth or Amanda Aldred here.