VAT Inspections & Visits

Key facts

HMRC normally gives 7 days’ notice before a planned visit.
Inspections check your records, returns, and business systems.
You have the right to be represented by an accountant or adviser.
Inspections can result in assessments, penalties, or a clean bill of health.

Why Does HMRC Visit?

HMRC may carry out a VAT inspection to:^[1]

Check your records match your VAT Returns
Verify large or unusual refund claims
Investigate suspected errors or fraud
Conduct a routine check (especially for newly registered businesses)

How Much Notice?

HMRC normally gives at least 7 days’ notice of a planned visit. They’ll write to you explaining what they want to see. In cases of suspected fraud, HMRC may visit without warning.^[1]

What Happens During a Visit

The officer reviews your VAT records, invoices, and returns
They may ask questions about your business processes
They check that digital records comply with MTD requirements
The visit typically lasts a few hours (sometimes a full day for complex businesses)

How to Prepare

Ensure your records are up to date and organised
Have all VAT invoices available for the period under review
Be prepared to explain any unusual transactions or adjustments
Consider having your accountant present

Possible Outcomes

No action — records are satisfactory
Assessment — HMRC issues an additional VAT bill for underpaid VAT^[3]
Penalty — for careless or deliberate errors
Recommendations — advice on improving your record-keeping

Your Rights

Right to be represented by a professional adviser^[2]
Right to a reasonable amount of time to gather information
Right to appeal any assessment or penalty
Right to complain about HMRC’s conduct

Frequently Asked Questions

How much notice does HMRC give before a VAT inspection?

HMRC normally gives at least 7 days’ notice of a planned VAT inspection. In cases of suspected fraud, they may visit without warning.

What does HMRC check during a VAT inspection?

HMRC reviews your VAT records, invoices, and returns, checks that your digital records comply with MTD requirements, and may ask questions about your business processes.

Can I have my accountant present during a VAT inspection?

Yes. You have the right to be represented by an accountant or professional adviser during an HMRC VAT inspection.

What happens if HMRC finds errors during a VAT inspection?

HMRC may issue an additional VAT assessment for underpaid VAT, impose penalties for careless or deliberate errors, or simply make recommendations for improving your record-keeping.

Sources

HMRC compliance checks — GOV.UK
Your rights during a compliance check — GOV.UK
VAT assessments — GOV.UK