VAT check has been on going for almost 3 YEARS. What can I do?

[Rpurple]

Hi there,

I am new to this platform. This is my firs time to post here. If you have similar experiences, please kindly share, I will be much appreciated.

LONG STORY SHORT: My company has received 3 VAT checks from different caseworkers for different periods. One has been going for almost 3 years and still unresolved, the other two are resolved but payments received are not as expected.

DETAILS:
My company started trading in July 2023 and submitted a VAT repayment claim for July 2023, which triggered a VAT check (CASE 1). The caseworker requested additional supporting documents, which I provided. I didn’t think it would be an issue, so I continued submitting monthly claims. However, no payments had been released because CASE 1 was still unresolved.

Then, in February 2024, I received another VAT check request (CASE 2) from a different caseworker. CASE 2 progressed smoothly and was resolved within two months, but the payment only covered three months—even though I had a total of 11 month claims pending at that time. When I emailed the caseworker to ask about the remaining months, he replied that those periods were not within his remit.


Meanwhile, CASE 1 is still unresolved, but the company is still trading and must continue submitting monthly claims. As a result, I received yet another VAT check request (CASE 3) in July 2024 from a new caseworker.


CASE 3 was endlessly supporting documents for new monthly claims. It finally resolved recently, and payments were issued. However, the approved payment periods were from January 2025 to July 2025 (I have no claims after July 2025). My question is: if the check was requested for the period of July 2024, how is it possible that the payment approval covers January 2025 onwards? I emailed back but not yet received a reply.

Although all monthly claims are not big money individually, but all adds up is quite a large amount and exhausted repeated emails asking same types of invoices for new claims.

 

[numbersrule]

Welcome to UKBF!

I am sure you will appreciate that most VAT Registered businesses pay tax to HMRC.

Therefore as a business that regularly claims Input Tax in excess of Output Tax you should expect to be scrutinised. To the nth degree. This does not mean you are doing anything wrong. It just means you will attract attention.

 

[Ziggy2024]

This is unreasonable from HMRC. Are you still communicating with the first enquiry? Further enquiries should not (IMO) have been raised whilst an active check was ongoing. Sounds like there is no joined up notes on their side.

I would be asking the inspector to conclude the first check ASAP, make a complaint if that does not get you anywhere and escalate it appropriately (MP) if you can't get any further.

If you receive any more checks the first response should be to highlight the amount of checks you have had in the relatively short period of time and to ask if it is necessary to conduct further checks.

 

[FreddyG]

I fail to see any mention of the OP's accountant! Having a respected accountant who rejects dodgy clients and is seldom subject to any unpleasantness is extremely important. Herbert Golightly, working from the kitchen table or Mrs Goat-Habit in her garden "office" is not going to inspire the respect of the inspectors at HMRC. They like to see books presented by accountancy partnerships that only present returns that are squeaky clean. That makes their lives simpler, and then they can have fun with VAT claims that do not come from respected professionals!

When we set up our company in 2000, we went through a local partnership that was the most respected in our area. They even made the news by turning clients away who looked a bit dodgy. Our first VAT claim-back in 2001 was for nearly £200,000. It went through without a murmur.