VAT Assist
HMRC has announced a VAT Assist service which is due to be launched in April 2027.
The service will compare data added to a taxpayer’s VAT return against information HMRC holds for that business to provide incisive feedback to help businesses submit accurate tax returns.
The service will be available to businesses using participating third-party software and HMRC will monitor and review the relevance and effectiveness of the feedback provided.
The pre-submission VAT Return data is transmitted from third-party software to HMRC via an API. That data is analysed in real time, using a rule-based model, comparing to data held within HMRC. Where potential errors are identified, digital ‘nudges’ will be transmitted through the API for the third-party software to present to the taxpayer.
The message will be displayed to the taxpayer through their software before the return is submitted although the taxpayer is not required to act on the feedback and may proceed with their submission if they consider that the return is correct.