Global Daily Tax News, HMRC Issues VAT Guidelines For Compliance, (Sep 20, 2024)

On September 18, 2024, HM Revenue and Customs issued new Guidelines for Compliance to assist companies to plan, carry out, and review accounting and compliance processes in regards to value-added tax.

The guidelines set out HMRC's recommended approach to VAT compliance management, including in relation to sales, purchases, and preparation of the VAT return. The controls included within the guidelines are designed to help businesses reduce the risk of error when accounting for VAT.

The guidance is broken down into ten parts:

• Purpose, scope and audience (part 1)

• General approach to VAT compliance controls (part 2)

• Order to cash (part 3)

• Procure to pay (part 4)

• Employee expenses (part 5)

• Record to report (part 6)

• VAT reporting (part 7)

• VAT reporting – manual adjustments (part 8)

• Outsourcing (part 9)

• Next steps – correcting errors and guidance (part 10)