Home visit from revenue

hairyslug

We applied for VAT registration some time back, we have just had a house call from the revenue, is this standard for new registrations, everything is above board, but I always manage to worry about this especially when they are waiting for you when you arrive home.

thesimpsons

odd, I've never heard of them just landing at a house or premises without notification first. Wonder is this a new thing or are you sure they were from Revenue ?

capefear

It’s fairly common for revenue to do surprise visits especially when a new company is registering for vat. They want to make sure there is nothing funny going on as there is a lot of vat fraud going on

BorneTobyWilde

capefear wrote: »

It’s fairly common for revenue to do surprise visits especially when a new company is registering for vat. They want to make sure there is nothing funny going on as there is a lot of vat fraud going on

Then get rid of vat, what is point of a small business collecting this vat for the revenue, and having to keep tabs of it all and then to hand it over. Most small businesses will simply spend what they have, vat and all to get ahead. When it comes to paying vat to revenue it's not there. In UK vat threshold is higher, and rightly so. A small business and services should be allowed to function up to 100k at least without the need for VAT.

myshirt

If you have anything to hide, now is the time to come clean. You don't want to let them discover it.

If all above board, ensure you can explain it. Have all your paperwork, books and records. It goes without saying, but stay away from phrases such as 'Cash in Hand', 'Shadow Economy', 'The Grey Market', or 'Compensating Adjustments'.

Your pitch has to be as tight as a ducks arse. If you feel you have been caught flat footed here, then tell them you need time to take professional advice. They will postpone on that basis, bit other than that they will proceed.

myshirt

capefear wrote: »

It’s fairly common for revenue to do surprise visits especially when a new company is registering for vat. They want to make sure there is nothing funny going on as there is a lot of vat fraud going on

There certainly is.

A lot of attempted fraud in the Invoice Discounting and Debt factoring space aswell.

capefear

The visit is normally to have a chat about the business, meet the owners and give them advice on keeping books records, accounting for vat etc. it’s a box ticking exercise and as there is a backlog it can be a few weeks from applying for the vat number before the actually get to call out.

After the visit the vat number is normally released within the week unless they have concerns or issues.

hairyslug

Thanks all. It was fairly straightforward, asked how we financed the startup, valuation of stock, examples of stock, suppliers etc, only thing that raised an eyebrow was my use of 2 bank accounts (it cuts down on transaction fees)

Wife wasn't impressed, house was a mess

BorneTobyWilde

BorneTobyWilde wrote: »

Then get rid of vat, what is point of a small business collecting this vat for the revenue, and having to keep tabs of it all and then to hand it over. Most small businesses will simply spend what they have, vat and all to get ahead. When it comes to paying vat to revenue it's not there. In UK vat threshold is higher, and rightly so. A small business and services should be allowed to function up to 100k at least without the need for VAT.

Being able to reclaim vat can be quite advantageous for a business though so if they don't pay vat they wont be able to reclaim VAT either.