VAT errors arise even within tightly managed organisations. However, systems and mechanisms that ensure these errors are identified promptly and then disclosed to HMRC will significantly reduce risk, uncertainty and management time.

The Proactive Consultancy Group’s specialists can help businesses to efficiently and appropriately identify, quantify, disclose and resolve VAT errors.

About Our Vat Error Correction and Disclosure Service

Our VAT error correction and disclosure service appropriately identifies and quantifies errors and provides support with disclosing them efficiently and promptly to HMRC.

Benefits of Our Professional Error Correction and Disclosure Service

Our clients use The Proactive Consultancy’s VAT error resolution service to reduce compliance risk by professional management of HMRC disclosures.

In this way, they can minimise potential penalties and disruption while gaining independent VAT expertise.

Another key advantage of engaging The Proactive Consultancy is that there are no upfront fees for this service.

An Overview of Our VAT Error Correction and Disclosure Service

Working on a no fee upfront basis, we will identify, assess and quantify over- and underpayments within your company’s VAT systems, and determine an appropriate corrective action. We will prepare supporting documentation for disclosures and manage communications with HMRC. This is an end-to-end service, so our support will continue through any enquiry or follow-up.

Why High-value Businesses Seek VAT Disclosure Support

Clients commonly seek our advice on VAT error disclosure when in the course of normal operations they discover historic VAT errors. They may also identify weaknesses and errors during internal audits, or when making changes to finance systems, or during M&A activity.

VAT errors also come to light when a company is preparing for an HMRC review, or as a result of corporate governance requirements.

We can also help meet board-level assurance needs in relation to VAT errors.

What Are the Consequences of Not Acting on a VAT Error?

Failing to disclose a VAT error can have serious consequences. It increases the risk that the under- or over-payment will be exposed during HMRC enquiries. This results in increased management time, as well as elevated risk of interest and penalties.

VAT errors can exacerbate uncertainty regarding financial provisions, and they can provoke reputational and governance concerns.

Common VAT Errors

In our work with high-value businesses, these are some of the most common errors that we see:

  • Incorrect VAT treatment of transactions
  • Input VAT recovery errors
  • Output VAT accounting errors
  • Partial exemption mistakes
  • International VAT errors
  • Property-related VAT issues
  • Systems and process failures
  • Historic compliance issues
  • Errors arising from acquisitions or restructuring

Key Benefits of the Error Correction and Disclosure Service

No upfront fees
Reduce compliance risk
Manage HMRC disclosures professionally
Minimise potential penalties and disruption
Gain independent VAT expertise

Our Error Correction and Disclosure Process

Our proven methodology makes our VAT correction and disclosure service an efficient, effective way to resolve under- and over-payments while minimising exposure to compliance risk, penalties and interest.

Methodology for the VAT Error Correction and Disclosure Service

Our professional VAT error correction service has five steps.

 Assessment

Our VAT consultants will first assess your case to determine the nature, scale and potential significance of the VAT issue. At this stage, we will engage with finance and tax stakeholders and carry out a high-level confidential review of identified concerns.

Our assessment will include all affected VAT periods and consideration of materiality. We can also provide an initial evaluation of HMRC’s disclosure requirements.

There is no obligation to proceed with our service – at this stage, we are focused on understanding potential exposure and options.

 Case Validation

We will then validate the case to establish whether an error exists and quantify the likely position. This stage includes a technical VAT analysis, and a review of affected transactions as well as sample testing and data analysis.

Our consultants will assess legislation and HMRC guidance as they apply to the error, and we can then provide a preliminary quantification of liability or recovery

At this stage, we can give you an understanding of the issue, an estimated value of the correction and then recommend a disclosure strategy.

 Engagement

We can then, if necessary, formalise support for the correction and disclosure process.

You and our experienced VAT specialists will agree a clear scope and deliverables.

There are no upfront fees because we operate under a success-based commercial structure where appropriate.

Our methodology ensures that using our service will not burden your internal teams, and we provide confidential handling throughout the VAT error disclosure service. You can be assured of both robust technical analysis and professional HMRC engagement.

 Delivery

At this stage, we will prepare and implement the correction and disclosure process. Key deliverables include an error quantification report. We will also prepare disclosure documentation and adjustment calculations.

This service includes correspondence support and liaison with HMRC. We will draft disclosure submissions, compile supporting evidence and manage information requests,

Once the error has been resolved, we will also provide you with recommendations for improving your VAT processes to reduce the chances that the same error will recur.

 Fee Only on Success

When you engage our VAT error correction and disclosure service, there is no upfront investment because our fees are linked to successful outcomes where appropriate. This transparent commercial structure promotes a shared focus on efficient resolution.

We are confident that our model provides specialist support without requiring significant upfront commitment from our clients.

Who is the VAT Error Disclosure Service Suitable For?

We have many years of experience supporting high-value and mid-market companies with complex organisational structures. This service is a good fit for:

  • Multi-entity groups
  • Organisations with complex VAT arrangements
  • Businesses with significant transaction volumes
  • Companies undergoing growth or transformation
  • Organisations with heightened governance requirements

Sectors who Benefit from Our Services

We have extensive experience at providing a VAT error disclosure and correction service to these sectors:

  • Healthcare (including private hospitals, dental groups and care homes)
  • Financial service providers (including lending and credit firms and investment and wealth management companies)
  • Property and real estate (including developers and commercial landlords)
  • Charities and not-for-profit
  • Education
  • Insurance
  • International businesses with a UK presence

Typical Triggers for an Error Correction Review

Clients typically seek our advice on VAT errors as a result of internal audit findings or during an HMRC enquiry or compliance check.

But there are some other common triggers, too:

  • ERP or finance system implementation
  • Staff turnover within finance teams
  • Acquisition, merger or restructuring activity
  • Discovery of historic VAT issues
  • Preparation for due diligence
  • Board or external auditor concerns

Our proven methodology can help you to establish the most effective route to correction and disclosure.