VAT Inspections

[BudgetB]

Hello all,

Could someone be kind enough to confirm whether it is still only 3 years that a VAT inspection can go back; even if they find something in those 3 years that makes them suspect there may be earlier discrepancies?

Thanks

[David Griffiths]

Four years.

It also depends what they find. If they suspect fraud, then they can go back pretty well indefinitely. For normal mistakes, then they can't go back further

[yellowplum]

Having an issue with an inspection (albeit long distance) at the moment. I was also told three years by a couple of accountants but as you state that if they suspect anything it can be indefinitely. The three year limit was implied that it was easy for them to deal with however if they wish to go back further than three years it is harder for them to do so.

Also they can not go back further than the previous inspection. Although one thing I learnt if they say yes to something at inspection make sure they give it to you in writing so the next monkey doesn't go back on it.

Hello all,

Could someone be kind enough to confirm whether it is still only 3 years that a VAT inspection can go back; even if they find something in those 3 years that makes them suspect there may be earlier discrepancies?

Thanks

[David Griffiths]

Also they can not go back further than the previous inspection..

I think that you'll find that's not correct

[3pic]

It used to be 3 years but is now 4 years in terms of how far HMRC can go back for any errors/adjustments identified during an inspection. If they suspect deliberate wrongdoing/fraud then there is no time limit as such.

They can certainly revisit/go back over previous inspections if they so wish. In reality, they'll most likely review the current and previous years and if they spot anything there then they'll go back the full four years.

In reality, you'll also likely find that if they do spot an error previously missed by the previous inspector, they will still raise an assessment but that any penalties will be mitigated to Nil on the basis HMRC missed it previously and thus you didn't have the opportunity to get it right thereafter. Equally, you could get an officer that doesn't want to go over old ground - but that's more personal choice rather than what they are limited to by the law.