I've received a VAT check from HMRC. What do I need?

When submitting your first VAT return you might be asked for some more information in a VAT compliance check. Here's a quick guide to what you might need

It's quite common for newly VAT registered businesses to have their first VAT return verified by HMRC in a VAT compliance check

If you've received a letter from HMRC notifying you of a VAT check on one of your VAT returns, you'll be given a link to an online form to complete.

This is common for many newly VAT registered businesses to complete, so is nothing to be alarmed about.

You can do this yourself, or hire a bookkeeper or accountant to manage this for you.

They'll need to be the one who submitted the VAT return as they'll need to login using the same Government Gateway account.

From the HMRC website:

Your VAT registration number
The CFS, CFSS or CFSRP reference number from the letter or email we sent (for example, CFSRP-12345)
Details of your main business activities
The date you started trading (if it is your first VAT Return)
The VAT rates that apply to your sales
Details of any VAT schemes you use (for example the VAT Cash Accounting Scheme)
Details of who filled in and who submitted the VAT Return
Names of any software packages if you are following rules for Making Tax Digital
Your detailed VAT account
Your 10 highest value purchase invoices where VAT has been charged
Bank statements

A detailed VAT account

If you've kept good bookkeeping records using accounting software like Quickbooks, you'll easily be able to download a report detailing the Net amounts, VAT & Gross amounts of your VAT transactions for the period filed for.

You can use a report to download this information into the preferred spreadsheet format requested by HMRC (.xlsx file).

Copies of your 10 Largest Purchase Invoices

You should be able to download copies of your 10 largest purchase invoices easily from your accounting software as supporting evidence for your VAT return.

You can upload these as JPG, PDF and some other file types, but we'd reccomend you stick with these two widely used & recognised file types.

Signed & Dated copies of any Hire Purchase agreements

If you have any hire purchase agreements, then HMRC will ask you to upload signed & dated copies of these during your VAT check.

Details of pre-registration VAT claims - assets, stock & goods in possession at time of registration

Due to the rules on claiming pre-registration VAT, HMRC will ask for some supporting evidence to verify what assets, stock & goods were in your possession at the time of registration.

For this reason, we'd always reccommend you carry out a stock take on the day of VAT registration.

Deadline

You'll have around 2-3 weeks to complete your request for supporting information.

Once you've submitted it, HMRC will review your return before releasing your funds, issuing a penalty for an incorrect return or requesting you to make some necessary adjustments.