Stuff like this is why it is easily possible to slash numbers at HMRC and slash the backlog at the same time.
I applied online for a client's registration on 14 Feb, straightforward stuff. Transfer of a going concern of a restaurant business, my client is a partnership. Back came some paperwork, VAT 5 and VAT 2. Annoying given that they asked for information we'd already given in the original application, but I sent it off. My client later sent it off too not realising I had. Then 2 weeks later they asked for the same info. again.
Very annoying, but my client sent it off again. Then 2 weeks later they rang me to ask for it yet again.
Very very annoying. I explained we'd already sent it 3 times and offered to give her any information needed right there and then by phone or e-mail, she refused. I gave her some free information:
1. Our first return will be a reclaim due to capital spends.
2. After that sales should be £200k a year or more, all at 20%, with mostly zero-rated food inputs. So a cash cow for the country.
Still she would not budge. I said I was not prepared to send the same information a fourth time.
So now we get a Letter of Refusal to issue the VAT number. I have written today to the head of the office concerned highlighting the history and suggesting he or she reconsiders this refusal for the good of the country's finances.
Where do they get their staff from? Wherver it is, can they send them back and start over again please?
Replies (12)
Please login or register to join the discussion.
Ask them to trace your documents
Give them the dates of posting and tell them that since personal,commercial and private data and details are at stake, you are concerned there might be a data protection issue and you might be required to contact the Data Protection commissioner.
And do so, if no joy.
Was previous restaurant VAT registered?
If so, I thought you were required to register from day 1, and not at the registration threshold!
TOGC
If you do not pursue the registration then the vendor would have to charge you VAT on the sale price. Was it included in the warranties and indeminties etc that your client would be registered for VAT at the date of transfer in order tha it could be treated as a TOGC.
I think you will need to go back to HMRC and sort this out otherwise there will be bigger problems in store if the vendor is assessed for VAT on the sale proceeeds as it will not be a VAT free TOGC.
Have you spoken to them? I am wondering if the reason for the rejection is that there have 2 or 3 applications on the go,and the rejection is for one of the applications, but there is still a live one?? Just a thought.
Do they give a reason?
I have never been in your situation but wonder why they have refused. Did they give a reason, and if not, did you ask for a reason?
I can't see any genuine reason other than the clients defaulting on VAT in the past but in those circumstances I understood they ask for a hefty deposit rather than refuse registration.
Online!
We have done a few online with no problem, but any Flat Rate/Partnership forms have to go by post (unless I have overlooked a way of doing them online).
Must admit though, that if a partnership or Flat Rate we tend to post the forms together to try to prevent mixups at HMRC end. Maybe this is what happened.
I wouldn't let it lie. I would escalate the problem, but I appreciate your clients wishes need to be considered first as long as they are aware of the VAT now payable on the purchase and still prefer that approach.