A major property investment company was concerned about the quality of VAT returns submitted in relation to some of its property holding vehicles. ITSL was able to review the entire compliance process, including interviewing key staff, and make wide-ranging recommendations for improvements. 

HMRC Enquiries 

A retail trader was being investigated for alleged debts of nearly £750,000, relating to VAT, Income Tax and PAYE. ITSL reviewed the case and identified that the alleged debts were based upon specific facts over 7 years ago that had been arbitrarily extrapolated. ITSL obtained the agreement of HMRC to undertake a contemporaneous takings analysis and has proposed working back from this empirical data, taking into account trading conditions etc, resulting in a proposal where the alleged debt is materially reduced (ongoing).

Refund error

A large trader made an overpayment and incorrectly processed the repayment, resulting in paying HMRC £70,000 too much VAT. ITSL prepared the repayment disclosure for HMRC, which went through without question.

AP data - 1

A national charity asked ITSL to investigate amounts of VAT it had paid to suppliers. Despite the charity not having separately recorded the VAT on payments it had made, by using sophisticated data extraction techniques, over £175,000k of recoverable VAT was identified and suppliers approached for repayment.   

AP data - 2

Whilst providing sub-contracted sophisticated data extraction techniques for another advisor, ITSL was able to identify nearly £50,000 of VAT that a local Council had failed to recover from just one year’s AP data.

Staff coverage

A major insurer appointed ITSL to provide coverage for the Head of Indirect Tax whilst on maternity cover. Terms of the cover included supervision of existing junior staff and submission of VAT returns. As a result of improvements identified by ITSL to the company’s partial exemption special method, which were proposed to and accepted by HMRC, the additional VAT recovery achieved exceeded the cost of the engagement. 

Please click here to return to the main Indirect Tax Services website