- HMRC released new guidelines for VAT compliance titled Help with VAT compliance controls
- Guidelines aim to help businesses understand HMRC expectations and reduce VAT reporting errors
- Relevant to VAT-registered businesses using invoice accounting
- Guidelines focus on systems and processes affecting VAT compliance
- Divided into ten sections covering risk areas, good practices, and control measures
- HMRC encourages businesses to review systems and improve compliance to avoid assessments and penalties
- Common error areas include motoring expenses, mobile phones, and business entertainment
- Recommendations for business entertainment include identifying attendees and blocking VAT claims on non-employee entertainment
- Guidelines support Making Tax Digital with recommendations for VAT reporting and manual adjustments
- Emphasis on maintaining end-to-end accuracy in VAT compliance processes
- Businesses retain legal responsibility and potential reputational risk even when outsourcing VAT compliance
Source: ormerodrutter.co.uk
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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