Auditor's liability for not registering for VAT ??

A charity has been operating for 30 years. The trustees believed that as a charity it did not need to charge VAT.

An internal review lead them to question this and they approached HMRC .

They have reviewed the correspondence and guidance received from HMRC and have now registered for VAT, on the advice of their current auditors, and have received a tax bill for £500k. This seriouly threatens the very existence of the charity. Will they have recourse against their former auditors who had never questioned or raised the need to register for VAT ??

Comments
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Not enough information

Roland195 |

More info

cymraeg_draig |
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Wow!

JamesPrice |

No time limit backwards...

djbrown |

A supply or not - not easy to determine

DMGbus |
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come off it

carnmores |
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Missing the point

Roland195 |

well we will have to disagree

carnmores |
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Do you honestly claim to be an expert in everything?

Roland195 |

Puzzler

adagm |

flabbergasted

carnmores |
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charity

Tom 7000 |
Tom 7000's picture

How many auditors?

Roland195 |

tom

carnmores |
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Get specialist advice

Dave Collier |