- HMRC is actively reviewing VAT returns from the past four years, even if previous refunds were unchallenged.
- Input VAT refunds are not guaranteed and can be withheld or clawed back during ongoing HMRC enquiries.
- Previous acceptance of VAT returns or successful pre-credibility checks do not protect businesses from retrospective assessments, penalties, or interest.
- HMRC’s checks are not full audits, and refunds remain provisional and subject to future review.
- Courts have upheld HMRC’s right to issue retrospective VAT assessments, regardless of past inspections or approvals.
Source: pkf-l.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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