Interventions: compliance routes: VAT: operational assurance and procedures
Once you have identified the potential risks and have decided that the case should be continued as a LM intervention you will need to complete Operational Assurance forms and procedures. See LPOG11000 for further guidance.
Ensure any other Management Information Systems , e.g. Caseflow are updated to show the case is actively being worked.
You will need to consider your assurance approach and ensure your audit trail is comprehensive and fully maintained in a timely manner. Please see VSME2150 ‘VAT quality event standards and measures’, for further guidance on the structure, basic checks and the standard of behaviour expected during a compliance visit.
Below are some visit type options, this is a basic list and you will need to consider the merits of each against the risks you have established and which intervention will produce the best outcomes.
- Announced - Phone or write to the customer in advance to arrange an appointment. These should always be confirmed in writing (standard visit booking letters can be found in SEES.)
- Unannounced (Authorised) - you will need to complete an IT01-Info/Insp Notice-Submission to Authorising Officer form (found in ‘forms and letters’ in SEES).CH254020 gives a breakdown of the criteria for unannounced visits and further guidance. You will need to draft an inspection notice (found in ‘forms and letters’ in SEES) that can be authorised to take with you to the premises you intend to visit. The form should be submitted to your Senior Officer and/or an Authorising Officer for consideration.
- Unannounced Debt Pursuit - if there is a company tax debt on file you can, under the LP/DMB MoU (Word 454KB) visit this trader to discuss the debt position and try to obtain payment, if they, the customer, agree at the time you can then continue to discuss their business, review records and so on or alternatively make another appointment to go back and discuss the business in full.
- Reg 25 - Guidance to follow
- Supporting - Another head of duty risk may be of a higher priority and therefore the visit may be led by that tax and you will go in a supporting role but it is suggested that you ask in advance to discuss the VAT as well as part of the visit.
For further help and guidance regarding assurance methods and audit techniques see CH200000
Visits must be conducted in pairs and ideally the second officer should have a direct tax background/role on the team.
You should complete the Visiting Risk Self-Assessment template LPOG7300 and forward to your manager as soon as you have arranged the visit.
(This content has been withheld because of exemptions in the Freedom of Information Act 2000)
It is important that everyone understands their rights and obligations when they are the subject of an HMRC compliance check which includes the issue of various factsheets - see CH206100
Several documents are available to assist with LM visits/enquiries in LPOG7300. None are fixed or exhaustive and you will find that you can and will need to adapt them all for different trade classes, these are just to demonstrate the basics that should be covered. It is recommended that you view these prior to each visit and use as appropriate.