Reg warns you

If you understand VAT, you will appreciate the complexity of this peer to peer taxation system. The HMRC have to expect and enforce certain behaviours from us all. Reg would encourage you to:

Be timely and correct to avoid Vat Inspections: HMRC can choose to implement a VAT inspection (for no reason). This will no doubt check your records (up to six years old must be available) and check your competence. I imagine inspections are really after catching deliberate or serious VAT declarations and payments. However, at best they are a pain to work through for no direct benefit to the inspected.

Don’t be late VAT returning: Avoid late declaration of VAT returns. The timetable is available in your online VAT account (add link to VAT login). The rules on tax points are there to ensure the timing of payments is appropriate. Late declaration of a VAT return or late payment will make you more likely to trigger a VAT inspection. Misunderstanding tax points is a risk which would become obvious in an inspection.

Bring up your mistakes: If you find an error, seek to correct it yourself.

Keep detailed invoice records: Personally I think record keeping is a burden on any business. Unfortunately, every regulator and tax collector has to be able to check our taxation declarations. Because VAT is potentially impacted by every invoice and expense it does require details and rigour. If I can think of a workable alternative, then I will let you all know.

There are of course penalties for getting this wrong. These are covered by VAT penalties.