Customs and International Trade

Expert guidance to reduce duty costs, simplify compliance, and strengthen your global supply chain.

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How can our customs support benefit your business?

We help importers, exporters, and supply chain managers reduce duty and VAT costs, claim all available reliefs, and stay compliant with HMRC, while improving cash flow and streamlining operations.

How Can We Help with Customs and International Trade?

Our customs experts help importers and exporters navigate the complex world of post-Brexit trade, ensuring compliance while identifying opportunities to reduce costs and improve efficiency.

We focus on the following key areas:

  • Tariff / Commodity Codes
    Ensuring your goods are correctly classified so you pay the right amount of duty.

  • Valuation
    Helping you apply accurate customs values so duty is only paid where appropriate.

  • Customs Reliefs & Simplifications
    Advising on relief schemes such as inward/outward processing and customs warehousing to mitigate or delay duty.

  • Origin & Preference
    Ensuring preference is properly claimed under UK trade agreements to reduce or eliminate duty on qualifying imports.

Contact Us

Get in touch with our team to schedule a consultation and discover how we can optimise your trade strategy.

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Helping Your Business Trade Smarter and Save More

Whether you’re an importer, exporter, or managing a complex supply chain, we help your business:

  • Minimise duty and VAT liabilities

  • Maximise available customs reliefs

  • Support HMRC audits or investigations

  • Improve cash flow and streamline trade operations

Frequently Asked Questions

What is a VAT Investigation?
A VAT investigation is an enquiry by HMRC to ensure that a business is correctly collecting, reporting, and paying VAT. If irregularities are identified, HMRC will work with taxpayers and/or their advisers to quantify the correct VAT position and consider whether any financial penalties would be appropriate.
 

A VAT inspection involves HMRC reaching out to or visiting the business to examine VAT records and address any questions that arise from their review. Typically, HMRC will notify businesses of a planned visit in advance. However, they also conduct unannounced visits when they suspect fraudulent activity, using the element of surprise to their advantage.

There are several factors that could trigger a VAT investigation:
  • ​Your business has a record of late VAT payments, non-payments, or repeated errors in VAT returns.

  • Your business is within a sector that is considered more prone to VAT irregularities, such as hospitality, construction companies, and hair/beauty salons.

  • There is a sudden spike in your VAT claims or make a large claim after periods without any previously, which can raise suspicions.

  • HMRC compares submitted VAT returns against industry averages, which shows your business’s VAT figures significantly differ from the expected benchmarks.

  • HMRC conducts a random VAT compliance check to ensure general adherence to tax regulations.

If HMRC finds significant errors during an initial VAT inspection, it may escalate the process into a full investigation. In such cases, HMRC could broaden the scope to include other taxes beyond VAT, such as income tax or corporation tax, if there are concerns about overall tax compliance.​

The outcome of a VAT investigation can vary depending on what HMRC discovers during their review. If everything is in order, HMRC may conclude the investigation without any further action. This means that your VAT returns and records are deemed accurate and compliant with regulations.

In some cases, HMRC may reassess the amount of VAT you owe. If they find errors or discrepancies in your records, they could adjust your VAT liability accordingly. This reassessment could lead to additional VAT payments or corrections to previous submissions.

Penalties and fines are another possible outcome if HMRC identifies errors, particularly those deemed to be deliberate or negligent. In more severe cases, particularly if HMRC suspects VAT fraud, there is the potential for prosecution. This could lead to criminal charges and significant legal consequences if HMRC believes there has been deliberate wrongdoing.

When HMRC identifies irregularities during a VAT investigation, they may impose financial penalties. The amount of the penalty depends on several factors, including whether the irregularity was intentional or accidental.

Penalties are calculated as a percentage of the tax understatement. The level of the penalty can vary based on whether the business voluntarily disclosed the issue before HMRC contacted them, and the degree of cooperation provided during the investigation.

Historically, failing to submit VAT returns or pay VAT on time, even if the amounts were correct, resulted in default surcharges. These surcharges were imposed after the first instance of lateness and increased in proportion to the VAT outstanding and the number of defaults.

However, since January 1, 2023, the penalty regime has shifted to a new points-based system. This new system replaces the previous default surcharge regime and introduces different criteria for calculating and imposing penalties.

If you choose to seek specialist advice from Nexus VAT’s Tax Dispute Experts, we will help you:

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  • Handle the VAT Investigation: Manage the entire HMRC process to resolve the matter as quickly as possible, minimising disruption to your business.

  • Review Your VAT Affairs: Conduct a comprehensive review of your VAT records to identify any issues, giving you an initial assessment of potential exposure.

  • Make Disclosures and Representations: Where necessary, communicate with HMRC to prevent unnecessary tax, interest, or penalties.

  • Negotiate Payment Arrangements: If required, arrange a manageable payment plan based on your business’s needs and circumstances.