In its efforts to close the tax gap (recorded at 14% in HMRC’s 2025/26 accounts), HMRC continues to focus on VAT risk and governance. Larger businesses with more complex tax affairs are a key focus because they account for 40% of HMRC’s total tax revenue, according to the Large Business Directorate. As a result, large businesses continue to attract significant HMRC scrutiny, particularly where VAT governance and risk management are concerned.

Services we offer

When a business has its position on VAT challenged by HMRC, we can offer practical advice and insight, so that your organisation can pursue the dispute or appeal a decision with confidence.

VAT Stats

£302.6 billion

UK’s gross revenue from VAT in 2025/26

Source: HMRC Annual Report and Accounts 2025 to 2026

£115.7 billion

VAT repaid by HMRC in 2025/26

Source: HMRC Annual Report and Accounts 2025 to 2026

2,330,400
registrations

The VAT population in 2024/25

Source: www.gov.uk

How we support our clients

VAT investigations can involve significant financial exposure for businesses and place unanticipated demand on internal teams.

Expertise

We have the experience and technical VAT expertise to help you assess and mitigate the risks of operational disruption and increased scrutiny that are inherent in pursuing a dispute resolution.

End-to-End Support

We can represent you during VAT appeals and tribunals, providing end-to-end support, including preparing appeal documents, handling statutory reviews, coordinating with lawyers and supporting witnesses.

Law Firm Partnerships

With our strong partnerships with trusted law firms, we are ideally placed to navigate the legal requirements of VAT litigation.

The Proactive Consultancy Group does not simply resolve disputes. We also help prevent them recurring. We can debrief your team and internal stakeholders with a review of VAT governance frameworks that will identify systemic weaknesses. We can make recommendations to strengthen controls and improve documentation processes to mitigate future compliance risk.