Chartered Accountants in India, working with clients across the UK

VAT Annual Audit
Audit & Assurance · VAT

An annual VAT check,before anyone else checks.

Small VAT errors repeat every quarter until someone notices. An annual VAT review checks a year of UK VAT returns against your records, so mistakes are fixed on your terms rather than in an HMRC compliance check. For businesses in India dealing in goods still outside GST, we also carry out state VAT audits.

A year of returns checkedFees agreed in writingErrors corrected properly
UKReview of a year of VAT returns
ErrorsCorrected the right way
HMRCReady for compliance checks
IndiaState VAT for non-GST goods

Annual VAT review for UK businesses.

The UK has no compulsory VAT audit, but HMRC carries out compliance checks and charges penalties for careless errors. Our annual review looks at a full year of VAT returns submitted under Making Tax Digital, comparing them with the underlying records. It suits businesses using outsourced bookkeeping or QuickBooks.

  • Sales VATCorrect rates, zero-rated and exempt sales, and tax points.
  • Purchase VATValid VAT invoices, blocked items and partial exemption.
  • Reverse chargeServices from abroad, including India, and construction rules.
  • Imports and exportsPostponed VAT accounting and evidence for zero-rated exports.
  • Digital recordsMTD-compatible records and digital links.
  • SchemesFlat rate, cash accounting or margin schemes used correctly.

Correcting errors properly.

Smaller errors in past UK VAT returns can usually be corrected in a later return, within limits set by HMRC. Larger or deliberate errors need a separate disclosure to HMRC. We list each error, the amount and the correct way to put it right, so you or your UK accountant can act on it.

State VAT audits in India.

Since GST arrived in 2017, VAT in India applies mainly to goods outside GST, such as petroleum products and alcohol for human consumption, under state laws. Some states require dealers in these goods to have VAT audits above set turnover levels. We check your state's requirements, audit the records and file the report.

How it works.

01
Access

Read-only access

To your accounting software and VAT returns.

02
Test

Match and sample

Returns against records, with samples of invoices.

03
Report

List the findings

Errors, amounts and process causes.

04
Correct

Fix them properly

Through a later return or a disclosure, as appropriate.

05
Improve

Prevent repeats

Updated tax codes, rules and checklists.

Why clients choose us for audits.

Chartered Accountants

Every audit is led and signed by Chartered Accountants in India.

Reports for UK readers

Findings written for UK boards, audit committees and group auditors.

Scope in writing

A written engagement letter with scope, timetable and fee.

Independent and careful

Independence checks and a second-partner review on every report.

Secure and online

Encrypted document sharing, with site visits where the work needs them.

Practical findings

Clear, prioritised recommendations your team can act on.

VAT reviews for businesses across the UK.

We review VAT for UK businesses in every region, working online from their accounting software, and carry out state VAT audits for dealers in India.

London

City of LondonCanary WharfHarrowWembleySouthallHounslowIlfordEast HamCroydonEdgware

South East

ReadingSloughMilton KeynesOxfordWatfordLutonCrawleyGuildford

Midlands

BirminghamLeicesterCoventryNottinghamWolverhamptonDerbyNorthampton

North of England

ManchesterLeedsBradfordSheffieldLiverpoolNewcastlePreston

East and South West

CambridgePeterboroughBristolSwindonSouthamptonBath

Scotland, Wales, NI

EdinburghGlasgowAberdeenDundeeCardiffSwanseaBelfast

VAT annual audit FAQs.

No. But HMRC carries out compliance checks, and an annual review helps you find and correct errors before they do.
A year of VAT returns compared with your records: rates, input tax, reverse charge, imports and exports, schemes and digital records.
Yes. Smaller errors can usually be corrected in a later return within HMRC limits. Larger ones need a separate disclosure.
We review and prepare. You or your UK accountant submit, unless another arrangement is agreed in writing.
Yes, for goods outside GST, mainly petroleum products and alcohol, under state VAT laws. Some states require VAT audits for these dealers.

Want a year of VAT checked properly?

Give us read-only access to your software. We will review it for a fixed fee.

This page is general guidance based on the Companies Act, 2013, Indian tax law and regulator guidelines as they stand. It is not legal or financial advice for your situation. Thresholds and requirements can change, so please speak to us before acting on it.