The Autumn Budget, the first of the new Labour government, highlights their focus on tax compliance and timely payments. This involves a significant recruitment drive for 5,000 additional HMRC staff, many of whom will be VAT inspectors. With this increase in recruitment, HMRC can ramp up VAT return inspections and risk based checks, in order to collect revenue to address the Tax Gap, VAT. 

Businesses should prepare for increased scrutiny by understanding HMRC’s inspection powers and processes. We are already seeing clear indications of HMRC actively increasing their inspection of VAT return filings and taxpayers, and we fully expect to see this inspection process ramping up in 2025, and beyond. Preparation is always more effective than reaction. Therefore, are you ready for the increased VAT checks and inspection process that HMRC are implementing?

Find out more here.

Please get in touch if you have any questions. 

Article authour - Debbie Jennings, VAT Director