The situation
A VAT registered trade business had been preparing returns from patchy spreadsheets, keying figures in by hand and hoping they were close. The owner was increasingly worried about what an inspection might find.
The problem
Poor records meant the returns were unreliable, likely both missing reclaimable VAT and at risk of errors HMRC could penalise. Hand keying figures also breached the Making Tax Digital digital link rule, adding compliance risk.
What we did
- Rebuilt the records. We set up compatible software with a bank feed so the figures flow digitally.
- Reviewed past returns. We checked recent returns, corrected errors and reclaimed VAT that had been missed.
- Made it compliant. The digital link is now intact, and we file each return from clean data.
What changed
The returns are now accurate and Making Tax Digital compliant, previously missed input VAT was reclaimed, and the fear of an inspection is gone. The owner trusts the numbers for the first time in years.
What this shows
VAT built on poor records is both a risk and a cost, through errors and missed reclaims. Clean, digital records make returns accurate, compliant and often cheaper.
Worried your VAT records will not stand up?
We rebuild your records digitally, review past returns, reclaim what you have missed, and keep every return compliant, so an inspection holds no fear.