Preparing for an HMRC Customs Audit: What Businesses Need to Know

In recent months, there has been a noticeable increase in the number of audits conducted, resulting in many businesses facing significant fines.  

Under UK customs and VAT legislation, businesses are required to keep evidence for a period of either four or six-years (depending on the process). 

These reviews ensure the security of UK borders and verify that all taxes are properly paid to HM Treasury.  

All businesses engaged in international trade, regardless of size, should be prepared for the possibility of an audit from HM Revenue & Customs (HMRC).  

The Importance of Compliance 

Businesses are expected to have robust procedures in place to ensure the accuracy of customs declarations, adherence to security protocols, and correct tax payments.  

However, in reality, many companies have developed their international trade revenue streams organically, often adopting ad-hoc processes along the way.  

This can result in fragmented, undocumented, or outdated procedures, leaving businesses vulnerable to compliance risks and potential HMRC penalties. 

How We Can Help 

To help businesses mitigate these risks, we conduct customs compliance audits, helping them prepare for potential HMRC inspections. 

Our comprehensive review process includes:  

1) Customs Exposure Assessment:  

We analyse your company’s customs activities to identify potential risks and areas of non-compliance.  

2) On-Site Review:  

Our experts conduct a site visit to evaluate your company’s customs knowledge, record keeping, processes, and procedures. 

3) Tailored Action Plan:  

Based on our findings, we provide a customised action plan highlighting areas of concern. The plan will identify necessary corrective measures and training to ensure ongoing compliance with HMRC regulations.  

Benefits of a Proactive Approach  

By partnering with our team of experts, your business can proactively address any gaps in your customs compliance framework.  

Our compliance review service offers valuable insights and guidance, helping you: 

• Identify weaknesses in customs controls and knowledge.  

• Implement corrective measures to mitigate compliance risks.  

• Receive practical recommendations and training to enhance compliance standards.  

• Avoid costly fines and penalties associated with customs violations.  

With the right procedures in place, your company will be well-prepared for any HMRC customs compliance check, ensuring full adherence to legal requirements while safeguarding your business from potential financial and operational disruptions.  

To arrange your HMRC audit contact the North East Chamber of Commerce international trade helpdesk (international.trade@necc.co.uk) and we will be happy to discuss your options with you.