VAT - Is there really any time being given to pay? | AccountingWEB

VAT - Is there really any time being given to pay?


I have a client who registered for VAT (15 months late) in September 2009 and has yet to submit a single VAT return / payment along with being behind with his SA tax.

Understandably HMRC are now getting seriously annoyed and have sent bankruptcy letters thretening such action if immediate payment is not paid.

HMRC have made VAT best assessments (which are way too low) and obviously do not take account of the pre-registration liabilities!

The client simply cannot pay this, and is looking for some kind of arrangement.

The amounts involved are as follows;

Pre reg:                                £45k

Post reg (to March 2011)      £27k

Projected quarterly liability   £9k (average over year)

I have advised him that he needs to get together some cash to make a lump sum payment if he is going to have any chance of a payment deal for the balance but nowadays even this seems in doubt as HMRC currently seem to be taking a very tough stance over non-payment.

If a payment proposal is made where the taxpayer pays a lump sum of say £15k and £1.5k per week for the next 18 months to clear his existing and estimated ongoing liabilities - Do you think this could be accpetable?

If not, has anybody got any ideas on what may be an acceptable proposal.

We all know that this client has brought on this situation, but I am still professionaly obliged to try and help him!


There are 9 comments. Login or register to view them.

Why can't he afford to pay?

stepurhan |
stepurhan's picture

VAT payment terms

daveforbes |
daveforbes's picture

Acceptable proposal?


No harm in asking

philhendy |
philhendy's picture

Why can't he afford to pay

hally993 |

Charged up front

philhendy |
philhendy's picture

Payment in advance

hally993 |

If I were the HMRC (and thank the Lord I'm not)

WhichTyler |

Hally 993

rockallj |
rockallj's picture