Input VAT Recovery Audit

Large organisations commonly fail to claim significant amounts of recoverable input VAT.

When working for our clients, particularly those with complex expenditure, we commonly see VAT recovery throttled by finance system limitations and historic process weaknesses.

The disruptive influence of acquisitions and staff changes can also result in lost VAT recovery opportunities.

The Proactive Consultancy Group’s input VAT recovery audit identifies missed claims, quantifies potential recoveries and manages the recovery process from start to finish.

What are the Benefits of an Input VAT Recovery Audit?

The key benefits of commissioning an input VAT recovery audit from The Proactive Consultancy Group are:

• Improved cash flow
• Recovery of historic VAT
• Minimal disruption to day-to-day finance operations
• Access to specialist VAT expertise
• No upfront fees

Sources of missed recovery

Common sources of missed VAT recovery that we see in our commercial clients include:

• Property and construction expenditure
• Professional fees
• IT and software investments
• Marketing and business development costs
• Overseas expenditure
• Capital projects
• Acquisition and restructuring costs
• Mis-coded supplier invoices

Our input VAT recovery audit focuses on:

• Supplier invoice analysis
• Blocked and restricted VAT
• Property and capital expenditure
• International transactions
• System and coding accuracy

The outcome of a successful audit is identification of recoverable VAT and enhanced controls to prevent future losses.

What Does an Input VAT Recovery Audit Involve?

During an input VAT recovery audit, our advisers will:

• Review your company’s historical VAT treatment and VAT recovery processes.
• Identify input VAT which may have been incorrectly excluded or not claimed.
• Analyse high-value expenditure categories.
• Review VAT recovery opportunities across multiple periods.

Once the review is completed, The Proactive Consultancy Group provides support in recovering amounts from HMRC.

A Tried and Tested VAT Recovery Audit Process

Assessment of your VAT Recovery Opportunities

The first step in our VAT recovery audit process is to determine whether there is a meaningful recovery opportunity. After an initial no obligation discussion with finance stakeholders, we will carry out a high-level review of business activities to get a comprehensive understanding of your VAT profile. We will then review sector-specific recovery opportunities.

We can deliver this initial assessment rapidly, and provide you with an indicative opportunity assessment.

Validating your VAT Recovery Case

Should you decide to proceed, we will gather evidence about your recoverable claim.

Our advisers will review sample transactions, VAT returns and accounting data. We will analyse expenditure categories, and then identify technical VAT grounds for recovery.

At this stage, we can tell you the likely value of your claim should you decide to proceed with our services.

Engagement: Formalising the VAT Recovery Project

Once you have decided to proceed with The Proactive Consultancy Group’s input vat recovery review, we will agree the scope and set out the timetable.

We do not charge upfront for VAT recovery, as under our success-based model, we only charge once your company has successfully recovered VAT. So engaging our experienced VAT specialists is a low-risk method of accessing confidential external VAT expertise and a robust proven technical methodology.

Delivery of the VAT Recovery Audit

We will conduct a full audit and prepare your recovery claim. This process includes:

• Detailed transaction analysis
• Supporting documentation review
• Quantification of recoverable VAT
• Preparation of technical rationale

Once we have delivered our recovery report and claim calculations, we will liaise with HMRC to submit your VAT recovery claim with supporting evidence.

Finally, we will make some recommendations that you can use to improve your internal VAT processes to maximise efficiency.

No Recovery, No Fee

Our fees are linked to successful VAT recovery so our focus will always be on delivering measurable value. This transparent commercial structure ensures that our interests are aligned with those of our clients.

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Who Is the Input VAT Recovery Service For?

Our input VAT recovery service is suited to:

• Clients with complex expenditure
• Mid-market and large organisations
• Groups with significant annual expenditure
• Businesses with multiple entities or registrations
• Organisations that have grown through acquisition
• Companies that have experienced operational or system change

These are organisations who can benefit most from an input VAT recovery audit, and who are commonly able to claim substantial VAT refunds.

Sectors We Are Best Placed to Support

Our VAT recovery specialists have extensive experience in these sectors:

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Many of our advisers have previously worked for HMRC, so they have real world experience of HMRC’s processes and thinking.

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When Do Companies Commission a VAT Recovery Audit?

We have found that certain commercial events, or stages in the business cycle encourage companies to seek a VAT recovery review. These are:

• During implementation of a new ERP or finance system
• During acquisition or disposal
• During a large capital project
• In a period of rapid business growth

Be Ready for an HMRC Investigation

Companies will also call on our input VAT recovery audit service when they are preparing for an HMRC enquiry. [LINK to HMRC Disputes and Appeals]

We can ensure that your VAT documentation is all in order to ensure any inspection or investigation goes smoothly.

Improve Resource and Capability in Your Tax and Finance Teams

We provide support when there are resource restraints within the finance department. Our experienced advisers are a flexible, low-risk way of bringing extra resource and capability to a stretched tax or finance team. We can provide full-time or part-time resource as required, or give advice on an ad hoc basis.

If you would like to discuss a potential review with a VAT specialist and receive an initial assessment of recovery opportunities, please get in touch.

Contact us

We will be happy to discuss your VAT review and audit options with no obligation and at no upfront cost.