Because small technical errors can create large tax exposures. High transaction values, mixed VAT treatments (exempt vs zero-rated), CIS obligations, and long project timelines mean mistakes often surface years later, when they’re costly or impossible to fix.

Incorrect VAT treatment can block input VAT recovery, delay repayments, or create unexpected liabilities. Common issues include misclassifying refurbishments, late Options to Tax, and failing to plan VAT before purchase or contract exchange.

Typical errors include failing to verify subcontractors, incorrect deductions, late monthly returns, and misunderstanding contractor vs subcontractor status. These can trigger penalties, disallowed costs, and PAYE exposure.

It applies when both parties are VAT registered, the supply falls under CIS, and the customer is not an end user. Charging VAT when the reverse charge applies can leave the contractor with a VAT debt that cannot be recovered.

Service charge funds are usually trust money, not income. Errors in VAT treatment, mixing funds, or poor documentation can lead to VAT misreporting, corporation tax errors, and HMRC challenges—especially for block managers and managing agents.

We apply sector-specific VAT decision trees, CIS reviews, and HMRC-ready documentation to identify risks early. Our focus is proactive planning—fixing structure, systems, and evidence before HMRC asks questions, not after.