- A major UK police force faced challenges recovering VAT on staff expenses due to a new financial system.
- The system allowed self-authorisation for expenses up to £50 but couldn’t flag valid VAT receipts.
- The force hadn’t submitted VAT claims on staff expenses for three years.
- PSTAX was engaged to develop a compliant method for VAT recovery.
- PSTAX analysed expenses and created a conservative estimation methodology.
- A three-month sample validated the approach, showing fair and reasonable results.
- HMRC approved the methodology, allowing a retrospective VAT claim of over £800,000.
- The method is approved for future use, with an estimated annual VAT saving of over £300,000.
- The case highlights PSTAX’s expertise in VAT recovery and compliance.
Source: pstax.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.
