VAT Compliance Reviews

If you're VAT-registered, staying compliant with HMRC rules matters—and getting it wrong can cost you penalties, interest, and stress. VAT-registered businesses must maintain accurate digital records, issue correct VAT invoices, submit VAT returns on time, and pay VAT due by deadlines to comply with HMRC requirements (gov.uk VAT businesses). HMRC can conduct VAT compliance checks (inspections) to verify that businesses are meeting their VAT obligations, with checks focusing on record keeping, VAT return accuracy, and proper VAT treatment of transactions. VAT compliance reviews help identify errors, omissions, or potential issues before HMRC inspections, reducing the risk of penalties, interest charges, and HMRC enquiries.

The problem is most businesses don't realise they have VAT compliance issues until HMRC finds them. They apply incorrect VAT rates to sales, miss required VAT invoices, keep incomplete or inaccurate records, file VAT returns late, or make errors in VAT calculations. That causes problems—HMRC penalties and interest charges, time-consuming HMRC enquiries, potential reputational damage, stress from dealing with compliance issues, and costs from correcting errors.

We handle VAT compliance reviews for VAT-registered businesses across Kent: compliance assessment (reviewing your VAT records, invoices, VAT returns, payment history, and VAT scheme compliance), error identification (identifying incorrect VAT rates, missing invoices, incomplete records, calculation errors, and other compliance issues), MTD compliance check (verifying your digital records and VAT return submission meet Making Tax Digital for VAT requirements), risk assessment (identifying areas of risk or non-compliance that could trigger HMRC enquiries or penalties), improvement recommendations (providing recommendations to improve compliance, fix errors, and reduce risk), and ongoing support (providing ongoing support to maintain compliance and avoid future issues). Whether you're a VAT-registered business in Medway needing a compliance review, a company in Maidstone worried about HMRC inspections, or a business in Canterbury wanting to identify compliance issues, we'll handle your VAT compliance reviews that work. No surprises, no penalties—just clear compliance that keeps you on the right side of HMRC.

What this helps you do (fast)

• Identify compliance issues before HMRC does — We'll review your VAT compliance and identify any errors, omissions, or potential issues before HMRC inspections. Early identification prevents penalties.
• Fix errors and reduce risk — We'll help you fix identified issues and implement improvements to reduce compliance risk. Fixing errors prevents future problems.
• Maintain MTD compliance — We'll verify your digital records and VAT return submission meet Making Tax Digital for VAT requirements. MTD compliance avoids penalties.
• Prepare for HMRC inspections — We'll help you prepare for HMRC compliance checks by ensuring your records and processes are in order. Preparation reduces inspection stress.
• Avoid penalties and interest — We'll help you avoid HMRC penalties and interest charges by identifying and fixing issues early. Avoiding penalties saves money.
• Get peace of mind — Regular compliance reviews give you confidence that your VAT compliance is in order. Peace of mind reduces stress.

How it works

Step-by-step process for VAT compliance reviews:

1. Discovery call — We chat about your business: how long you've been VAT-registered, what VAT scheme you're using (Standard, Flat Rate, etc.), whether you've had any HMRC enquiries or issues, what your current record-keeping systems are, whether you're MTD-compliant, and what concerns you have about compliance. Understanding your situation helps us tailor the review.
2. Information gathering — We gather all relevant information for the compliance review:
   • VAT records — Digital records of sales, purchases, invoices, and VAT transactions (as required by MTD)
   • VAT invoices — Copies of VAT invoices issued and received, checking for correct format and VAT details
   • VAT returns — Copies of recent VAT returns submitted to HMRC, checking for accuracy and completeness
   • VAT payment history — Evidence of VAT payments made and deadlines met
   • VAT scheme documentation — Documentation confirming which VAT scheme you're using and compliance with scheme rules
   • MTD compliance documentation — Evidence of MTD-compliant software, digital record-keeping, and digital links
   Information gathering ensures we have everything needed for a thorough review.
3. Compliance assessment — We conduct a comprehensive review of your VAT compliance:
   • Record keeping review — We check that your digital records are accurate, complete, and meet MTD requirements (all transactions recorded digitally, digital links maintained, no manual rekeying).
   • Invoice review — We check that VAT invoices issued and received are correct (correct format, VAT registration number, VAT rates, VAT amounts, and invoice details).
   • VAT return review — We review recent VAT returns for accuracy (VAT calculations correct, all transactions included, correct boxes completed, consistency with records).
   • Payment history review — We check that VAT payments have been made on time and deadlines met.
   • VAT scheme compliance — We verify compliance with your chosen VAT scheme rules (Standard, Flat Rate, Cash Accounting, Annual Accounting, etc.).
   • MTD compliance check — We verify MTD for VAT compliance (digital records maintained, MTD-compatible software used, digital links maintained, VAT returns submitted digitally).
   Compliance assessment identifies any issues or areas of risk.
4. Error identification and risk assessment — We identify specific errors, omissions, or compliance issues:
   • Incorrect VAT rates — Where incorrect VAT rates have been applied to sales or purchases
   • Missing or incorrect invoices — Where required VAT invoices are missing or contain errors
   • Incomplete or inaccurate records — Where records are missing transactions, have errors, or don't meet MTD requirements
   • Late filing or payment — Where VAT returns have been filed late or payments missed deadlines
   • Calculation errors — Where VAT calculations in returns or records are incorrect
   • MTD non-compliance — Where digital record-keeping or submission requirements aren't met
   • VAT scheme non-compliance — Where chosen VAT scheme rules aren't being followed correctly
   Error identification highlights specific issues to address.
5. Risk prioritisation — We prioritise identified issues by risk level:
   • High risk — Issues likely to trigger HMRC enquiries or significant penalties (major errors, systematic non-compliance, MTD non-compliance)
   • Medium risk — Issues that could cause problems if not addressed (moderate errors, occasional non-compliance)
   • Low risk — Minor issues that should be addressed but are less urgent (small errors, minor inconsistencies)
   Risk prioritisation helps you focus on fixing the most important issues first.
6. Improvement recommendations — We provide detailed recommendations to fix issues and improve compliance:
   • Immediate fixes — Urgent actions needed to fix high-risk issues (correcting errors, submitting missing returns, fixing records)
   • System improvements — Changes to processes or systems to prevent future issues (improved record-keeping, better invoice management, MTD software setup)
   • Training and support — Training or guidance needed to ensure compliance going forward (staff training, process documentation, ongoing support)
   • Regular reviews — Recommendations on how often to conduct compliance reviews (annually, before significant changes, etc.)
   Improvement recommendations provide a clear action plan.
7. Review report and action plan — We provide a detailed review report:
   • Executive summary — Overview of compliance status, key issues identified, and overall risk assessment
   • Detailed findings — Specific issues identified, with evidence and explanations
   • Risk assessment — Prioritised list of risks and their potential impact
   • Action plan — Clear steps to fix issues and improve compliance
   • Recommendations — Long-term recommendations for maintaining compliance
   Review report provides a clear roadmap for improvement.
8. Implementation support (optional) — We can help you implement improvements:
   • Error correction — Helping correct identified errors (amending returns, fixing records, correcting calculations)
   • System setup — Helping set up improved record-keeping or MTD-compliant systems
   • Process improvement — Helping improve processes to prevent future issues
   • Ongoing support — Providing ongoing support to maintain compliance
   Implementation support ensures improvements are made effectively.

We handle all aspects of VAT compliance reviews, from initial assessment to improvement recommendations. The key is identifying issues early, prioritising risks, and providing clear recommendations to fix problems and maintain compliance.

Costs & timelines

Pricing factors:

• Review scope — Basic review (recent returns and records) vs. comprehensive review (full historical review, all records, MTD compliance, scheme compliance) affects scope and time.
• Business complexity — Simple businesses with straightforward VAT vs. complex businesses with multiple activities, transactions, or schemes increases complexity.
• Record quality — Well-organised digital records vs. poor or incomplete records affects review time.
• Number of issues — Few issues vs. many issues or major non-compliance affects time for identification and recommendations.

Commonly reported ranges by local providers:

• Basic VAT compliance review (recent returns, basic records, simple business): £300–£600 (includes compliance assessment, basic error identification, review report with recommendations)
• Standard VAT compliance review (comprehensive review, all records, MTD compliance, improvement recommendations): £500–£1,000 (includes full compliance assessment, comprehensive error identification, risk assessment, detailed review report with action plan)
• Complex VAT compliance review (full historical review, complex business, multiple issues, implementation support): £1,000–£2,500+ (includes comprehensive historical review, complex error identification, detailed risk assessment, comprehensive review report, implementation support)
• Ongoing compliance support (regular reviews, compliance monitoring): £200–£500 per quarter (regular compliance checks, ongoing monitoring, support)

Why VAT compliance reviews cost what they do:

• Specialist knowledge — Understanding VAT compliance requirements, HMRC expectations, MTD rules, and VAT schemes requires specialist knowledge.
• Time and thoroughness — Comprehensive compliance reviews require time to examine records, identify issues, assess risks, and provide detailed recommendations.
• Value provided — Compliance reviews help you avoid HMRC penalties, interest charges, and enquiries, providing substantial value.
• Risk management — Identifying and fixing issues before HMRC inspections protects you from costly penalties and stress.

Timeline: Basic compliance review typically takes 1–2 weeks. Standard review typically takes 2–3 weeks. Complex review typically takes 3–4 weeks. Review reports are typically delivered within the review timeframe, with action plans provided upon completion.

Payment: Typically invoiced on completion of review report, or in stages: initial assessment (on completion), detailed review (on completion), report delivery (on delivery). Payment terms are typically 14–30 days.

No hidden fees. Our price includes compliance assessment, error identification, risk assessment, review report with findings and recommendations, and action plan. Implementation support (if requested) is typically charged separately or included in ongoing support packages.

Kent (UK) focus

For VAT-registered businesses in Kent, whether you're a business in Medway needing a compliance review, a company in Maidstone worried about HMRC inspections, or a business in Canterbury wanting to identify compliance issues, VAT compliance reviews help you stay compliant and avoid penalties. Many Kent businesses don't realise they have VAT compliance issues until HMRC finds them, leading to penalties, interest charges, and stress. We help local businesses identify issues early, fix errors, improve compliance, and maintain MTD compliance, ensuring they stay on the right side of HMRC. Regular compliance reviews (annually or before significant business changes) help businesses maintain compliance, identify issues early, and reduce the risk of HMRC penalties.

Common Kent VAT compliance scenarios:

• Businesses preparing for HMRC inspections — Wanting to ensure compliance before potential HMRC checks.
• Businesses with compliance concerns — Worried about errors, late filing, or MTD compliance issues.
• Businesses after significant changes — Needing reviews after business changes, scheme changes, or system changes.
• Regular compliance maintenance — Businesses wanting regular reviews to maintain compliance and identify issues early.

Remote-first, Kent-focused. We don't need to meet in person (though we can if you prefer), and we understand what Kent businesses are dealing with. Compliance assessment, error identification, risk assessment, improvement recommendations—we'll handle your VAT compliance reviews that keep you compliant.

FAQs