One of my clients has just received a letter from HMRC pointing out that they did not register for MTD for VAT by the required date and have therefore missed filing their first return under the new regime. This client has just ceased trading and we took the view that it was unnecessary to register since their annual turnover was going to be below the threshold. The letter implies that they mistakenly missed the date but, if they haven’t registered by the time their next return is due, it will be considered that they deliberately failed to register. There is no indication as to the penalty for not registering and, of course, no return address, no telephone number or email address to enable contact to explain the circumstances.
Has anyone else received this letter yet and, if so, how do you intend to respond to it - or will you ignore it?
I have several clients who are below the taxable threshold who haven’t signed up for MTD so I image that this is the first letter of many! Since HMRC have no means of ascertaining the businesses taxable income from the figures in the nine boxes I wonder whether this is the first stage in making ALL VAT registered businesses sign up for MTD?
The letter is from Rebecca Hutton - the “Head Of External Stakeholder Engagement” - it’s good to know that all us customers have a stake in this!!