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VAT Investigations

HMRC VAT Compliance Checks & Serious VAT Enquiries

HMRC carries out VAT investigations to confirm that businesses are paying the correct amount of VAT and operating the rules properly. These checks can be routine — or they can escalate quickly if HMRC believes errors or irregularities exist. Tax Guard represents businesses facing VAT compliance checks, dispute escalations, and serious VAT fraud investigations. We manage the process, protect your position, and negotiate with HMRC to minimise liabilities.

What Happens During a VAT Investigation

Most VAT investigations involve a visit to your premises. HMRC will:

  • Review VAT returns and underlying records
  • Test purchase and sales invoices
  • Check accuracy of VAT calculations
  • Ask questions about any discrepancies or unusual entries
  • Visits are normally arranged in advance, but in serious cases HMRC can arrive without notice. They may review:
  • The current VAT period
  • Previous years already submitted
  • Specific transactions or patterns they consider high-risk
  • You are entitled to have a tax adviser present, and this is strongly recommended.
  • HMRC also has limits on what they are legally allowed to request or examine. Many accountants are unaware of these restrictions, but controlling HMRC’s powers is a critical part of a proper defence strategy.

When a VAT Check Becomes a VAT Investigation

HMRC may escalate a routine compliance check into a full investigation if they find:

  • Significant under-declared VAT
  • Inaccurate record-keeping
  • Unusual transactions
  • Evidence suggesting deliberate behaviour
  • Once escalated, HMRC can extend the review to other taxes, not just VAT.

VAT Fraud & VAT Evasion Cases

In more serious situations, particularly where HMRC believes there may be dishonest conduct, the case may proceed under Public Notice 160, HMRC’s process for suspected VAT fraud.

These cases involve:

  • Higher financial risk
  • Greater scrutiny
  • Potential criminal investigation
  • You should not deal with HMRC alone in these circumstances.

How Tax Guard Helps

We act as your specialist representative throughout the VAT investigation.

1.We take control of all communication.

HMRC stops speaking to you directly; everything goes through us.

2.We ensure HMRC stays within its legal powers.

We challenge overreach, protect your rights, and manage the controlled release of information.

3.We analyse discrepancies before HMRC does.

This allows us to present your position clearly and strategically.

4.We negotiate reductions in VAT and penalties.

Including arguments around behaviour, reasonable care, and mitigation.

5.We protect you from naming and shaming.

Professional handling significantly reduces this risk.

  • Whether the issue is bookkeeping errors, technical mistakes, or HMRC suspicion of something more serious, we work to contain the enquiry and secure the best possible outcome.

Speak to Tax Guard

If HMRC has notified you of a VAT compliance check or VAT investigation, contact us before responding. We offer a free, confidential, no-obligation consultation to assess your position and outline the strongest defence strategy.

028 9335 0290

Speak to our experts on the phone now.

028 9335 0290

Speak to our experts on the phone now.

Request a callback

Give us your details and we’ll give you a callback to discuss your enquiry.