HMRC Guidelines for VAT Compliance Controls: Best Practices for Businesses to Minimize Errors

• HMRC released Guidelines for Compliance for VAT accounting and compliance processes
• Aim is to establish tax control framework to reduce errors
• Guidelines cover various aspects of business and control points
• Key recommendation is well-documented VAT compliance process
• Guidelines cover sales processes, purchase processes, employee expenses, accounting system configuration, VAT reporting, manual adjustments, outsourcing, and correcting errors
• Section on employee expenses focuses on VAT recovery for reimbursed costs
• Businesses should review VAT configuration for expense types and ensure correct setup
• Retention of supporting invoices and receipts is important
• Employees should be trained on correct entry of expense claims
• Appropriate reviews and controls should be implemented to identify and correct input errors
• Manual approach to employee expense procedures also requires reviews and controls.

Source: saffery.com

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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